NOTIFICATION NO. 27/2017, DT. 07/09/2017
TRQ for Raw Sugar: Amendment in import policy of raw sugar classified under Exim Code 170114 of Chapter 17 of ITC (HS), 2017-Schedule-1 (Import Policy)
S.O. (E) - In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby inserts import policy condition on 'Raw Sugar' classified under Exim Code 170114 of Chapter 17 of ITC (HS), 2017- Schedule-1 (Import Policy) as under:
Exim Code |
Item Description |
Policy |
Existing Policy Conditions |
Revised Policy Condition |
170114 |
Raw Sugar |
Free |
- |
Import of items under Exim Code 170114 is "Free". However, import up to 3 Lakh MT of raw sugar is subject to Tariff Rate Quota Scheme @ 25% Customs Duty) as per conditions laid down below. |
2. (i) Import of 3 Lakh MT of raw sugar under Exim Code 170114 is allowed to be imported by millers/ refiners at 25% Tariff Duty, through the following ports in the southern states and corresponding Regional Authorities of DGFT, as in the table below:
Name of the Port
(Import allowed only through following ports) |
Application to be submitted to the Regional Authority of DGFT |
(i) Tuticorin, and (ii) Chennai (Tamil Nadu), (iii) Karaikal (Puducherry) |
- Applicants importing through Tuticorin, Chennai and Karaikal ports are to submit their applications to RA, Chennai; |
(iv) Mangalore (Karnataka) |
- For imports through Mangalore, applicants may submit their application to RA, Bengaluru; and |
(v) Kakinada, (vi) Vishakhapatnam and (vii) Gangavaram (Andhra Pradesh) |
- For imports through Kakinada, Vishakhapatnam and Gagavaram applicants may submit their applicants to RA, Vishakhapatnam. |
ii. Applications:
a. Applications are invited online from the intending millers/refiners (having own refining/processing capacity for conversion of raw sugar to white /refined sugar) of raw sugar for import of raw sugar as per ANF-2M of FTP 2015-20 to DGFT, at sugarimporttrq-dgft@nic.in with a copy to Regional Authorities namely Chennai, Bengaluru and Visakhapatnam. Further, a signed copy of the application shall be submitted to Regional Authority concerned and to DGFT Hqrs. (Import Cell), Udyog Bhawan, New Delhi. Application fee for these applications shall be paid according to procedure as per Appendix 2K of Appendices & Aayat Niryat Forms. For each refining/processing unit, applicants shall give self declaration of its refining/processing capacity while providing self certified copy of latest IEM issued by DIPP and/or any other document indicating its refining/processing capacity.
b. Applicants intending to import under this notification must also indicate in its application the quantum applied in response to the Notification No. 1 dated 5th April, 2017; the quantum allotted and total imports made by the applicant firm against the allocated quota.
c. The applications will be received between 8th September to 12th September, 2017 (till 5 pm) (five days). The allocation of quota for each eligible applicant shall be notified on 13th September, 2017, as per the decision of the EFC under Para 2.51 of the HBP, 2015-20. The EFC, while considering applications, will take into considerations; inter alia, the monthly refining/processing capacity of the applicant, the quantity applied for by the applicant and the total number of applications received under the notification. Record of past utilization, will also be considered by the Committee. RA will issue license/s as per the decisions of the EFC.
d. The importer shall furnish the details of Letter of Credit /confirmed contract to the RA concerned within 10 days of getting their import quota at sugarimporttrq-dgft@nic.in. The subject header of this e-mail shall be "Name of applicant / IE Code /quantity applied in MT /Name of the RA where application is being filed. Non compliance will attract penalty as per Para (iv) of this notification and automatic cancellation of allocation.
e. The importer having furnished the irrevocable letter of credit shall further import the entire quantity of raw sugar, as allotted to the applicant firm, within 60 days of date of issue of license.
f. Actual user condition as in the Notification No.68/2017-Customs (N.T.) dated 30th June, 2017 will be applicable on imports under this TRQ scheme and importer shall convert raw sugar into white/refined sugar within a period, not exceeding 30 days from the date of bill of entry or the date of entry inwards, whichever is later.
iii. Validity of Quota: TRQ benefit (25% Customs tariff) under this Notification shall be available upto 60 (sixty) days from the date of issue of license as per Section 15 of the Customs Act, 1962.
iv. Penalty: If, after obtaining license under TRQ, the applicant fails to utilize the quota fully/partially, the applicant shall surrender the unutilized quantity to DGFT at sugarimporttrq-dgft@nic.in by 25th September, 2017. In such a case, the applicant will be liable for a penalty of 0.5% of the CIF value of the unutilized quota. Failure to intimate the unutilized quantity will further make him liable to penal actions under FT(DR) Act 1992, as amended from time to time, in addition to the penalty of 0.5%.
v. Reporting: The license holders shall submit weekly statements (every Monday) indicating the actual arrival of shipments at the Indian ports at sugarimporttrq-dgft@nic.in ; cdsugar.fpd@nic.in ; and to his jurisdictional Regional Authority.
vi. Reallocation: The quota so surrendered or cancelled, if any, will be allocated to other eligible applicants within a week.
vii. DGFT reserves the right to make any changes in allocation as deemed fit at any point of time.
Effect of this Notification: Import of 3 Lakh MT of raw sugar under Exim Code 170114 of Chapter 17 of ITC (HS), 2017-Schedule-1 (Import Policy) is allowed at 25% Customs duty under TRQ.
(Alok Vardhan Chaturvedi)
Director General of Foreign Trade
[F.No .01/89/180/Misc-13/AM-07/PC-2(A)]
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