Procedure for Tariff Rate Quota (TRQ) under FTA/CECA for FY 2022-23

Directorate General of Foreign Trade (DGFT) has introduced the Procedures for application for Tariff Rate Quota (TRQ) under FTA/CECA for FY 2022-23 vides a Trade Notice No. 33/2021-2022 dated 27th January 2022. With this Notification, DGFT announced that all applicants seeking Tariff Rate Quota (TRQ) for imports for the period FY2022-23 are to be submitted online using the "e-Tariff Rate Quota" system.

The Gist of DGFT Trade Notice

The Direct General of Foreign Trade has announced the following information to importers.

All applicants seeking Tariff Rate Quota (TRQ) for imports for the period FY2022-23 are to be submitted online using the "e-Tariff Rate Quota" system.
The last date for e-TRQ applications for FY2022-23 is 28.02.2022.
TRQ applications should not be submitted as ‘Licence for Restricted Imports’.

Tariff Rate Quota (TRQ)

The Tariff Rate Quota is a mechanism that allows the import of a set quantity of specific products. Tariff quotas are used on a wide range of products but most are in the agriculture sector. Cereals, meat, fruit and vegetables, and dairy products are the most common, and sugar is also protected in most producing countries.

TRQ Authorization

The TRQ Authorization is allotted to the importer by the Directorate General of Foreign Trade, following paragraph 2.62 of the Handbook of Procedures, 2015-2020.

The TRQ authorization shall contain the name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of the certificate
The TRQ authorization will be issued electronically by the Directorate General of Foreign Trade and transmitted to the ICES system
Imports made against the TRQ shall be allowed only upon debiting the TRQ quantity electronically in the ICES system
As per Foreign Trade policy, TRQ authorizations are non-transferable.

Tariff Rate Quota (TRQ) under FTA/CECA

The details of allocation of Tariff Rate Quota (TRQ) under various FTA/CECA are notified in para 2.107 of the HBP. The procedure for application of TRQ has been laid down in Annexures I, II, and III of Appendix 2A of the Handbook of Procedures.

A Free trade Agreement (FTA)

A free trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states.

Comprehensive Economic Cooperation Agreement (CECA)

The Comprehensive Economic Cooperation Agreement (CECA) is a free trade agreement between Singapore and India to strengthen bilateral trade. India-Singapore CECA was the first comprehensive FTA India signed with any country. Appendix 2A of the Handbook of Procedures is attached here for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2022/01/Updated-Appendix-2A.pdf" title="Updated Appendix 2A"]

Online E-Tariff Rate Quota System for Imports

As part of the IT Revamp, the DGFT launched the Online E-Tariff Rate Quota System for Imports on 4th February 2021. With this introduction of this new system, DGFT announced that All applicants seeking Tariff Rate Quota (TRQ) for imports are required to apply online under “e-Tariff Rate Quota” in the Import Management System, through the DGFT Website.

Eligibility for TRQ for FY2022-23

The following person can apply for Tariff Rate Quota (TRQ) under FTA/CECA for FY2022-23

Manufacturer exporters with or without supporting manufacturer
Merchant exporters tied to supporting manufacturers
Service provider

Prescribed Date for e-TRQ applications for FY2022-23

Directorate General of Foreign Trade (DGFT) has announced that All applicants seeking Tariff Rate Quota (TRQ) for imports for the period FY2022-23 are to be submitted online using the "e-Tariff Rate Quota" system on or before 28th February 2022.

Validity of TRQ Authorization

TRQ authorization under FTA/CECA will be valid for imports for 1 year from the date of issuance of the authorization

The applicable fee for TRQ Application for FY2022-23

A registration fee of Rs. 1 per thousand subjects to a minimum of Rs. 500 and a maximum of Rs. 1 Lakh on CIF amount of the authorization will need to be paid through electronic mode in the online system for each application for issuance of the authorization

Prerequisites for TRQ Authorization for FY2022-23

To apply for Tariff Rate Quota Authorization for FY2022-23, the following are the prerequisites required:

The DGFT user profile must be linked with an importer-exporter Code
A valid DSC must be registered in the system
GSTN details corresponding to the branches of the IEC

Note: There are no mandatory attachments; however, the applicant can attach the Pre-purchase agreement.

Application Procedure for Tariff Rate Quota (TRQ) for FY2022-23

The application procedure for applying the e-Tariff Rate Quota for FY2022-23 in the Import Management System, through the importer’s dashboard on the DGFT Website is as follows:

Access the official website of DGFT and proceed with the registration process. Furnish the Registration Details and Select Register User as “Importer/Exporter”.
OTPs will be sent to the email and mobile number, Upon Successful validation of the OTP; the applicant will receive a notification containing the temporary password which the applicant needs to change upon the first login.
After login to the DGFT web portal, navigate to Services and then select Import Management system and click on the TRQ option.
On Apply for TRQ tile, the applicant needs to click on the “Explore” link. Select the “Start Fresh Application” button or “Proceed with Existing Application” Button in case the applicant has already saved a draft application.
Provide the following details and click on the “Save and Next” option to proceed further.
- Application Details
- Firm’s Details
- Import Details
- Import Item Details

Note: The applicant can add multiple items and licenses and bulk upload items if needed.

After furnishing all required details, the applicant will be redirected to the “Port details tab
Based on the value selected from the Purpose of Import dropdown on the “Port Details” screen, the ribbon will be displayed on the “Other Details” screen. The applicant needs to fill in the input values on the “Other Details” screen and click on the “Save and Next” button.

Note: Uploading attachment is not mandatory, in case the applicant wishes to upload any requirement they can upload and click on the “Save and Next” button.

On the “Declaration” tab, the applicant needs to accept the terms and conditions by clicking on the checkbox. Provide all required details and click the “Save and Next” button.
On the “Application Summary” screen select the acceptance of declaration check box and click on the Sign button to sign the application using a digital token.
By clicking the “Sign” button, the “Payment for Apply for TRQ” button will be displayed.
Confirm and proceed to make the payment against the application. The system calculates the application payment value automatically
After Successful Payment, the Page shall be redirected to the DGFT Website and the receipt shall be displayed, the applicant can also download the receipt.

[pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2022/01/Trade-Notice-33-dated-27Jan2022.pdf" title="Trade Notice 33 dated 27Jan2022"]