DGFT Replaces October 31 Raw Sugar TRQ Deadline With Two-Month Bill-of-Entry Window

The Directorate General of Foreign Trade has revised a key compliance timeline under its 10 lakh metric tonne raw sugar Tariff Rate Quota framework. A corrigendum dated 24 August 2026 to Public Notice No. 27/2026-2027 changes the post-import processing and domestic-sale deadline from a common 31 October 2026 cut-off to a consignment-linked period of up to two months from the date of filing the bill of entry.

What has changed

Under the original Public Notice issued on 20 August 2026, raw sugar imported under the TRQ had to be processed into white or refined sugar sufficiently in advance so that the refined sugar could be sold in the domestic market by 31 October 2026. The 24 August corrigendum replaces that fixed deadline with a rolling compliance window tied to each import consignment.

The revised position requires the imported raw sugar to be converted into white or refined sugar and sold in the domestic market within a period not exceeding two months from the date of filing the bill of entry. All other terms and conditions of the original Public Notice remain unchanged.

Why the change matters for importers and finance teams

The amendment materially changes how mills and refiners should track compliance. Instead of working toward one common calendar deadline, businesses will now need consignment-level monitoring based on the bill-of-entry date. That means procurement, customs, finance, production and tax teams should be able to connect each imported lot with its filing date, processing status and domestic-sale completion date.

For Chartered Accountants and compliance professionals advising participating entities, the practical focus shifts toward documentary control. A missed two-month window could create exposure under the conditions of the TRQ authorisation and related customs provisions, so the revised timeline should be reflected in internal trackers, management reporting and post-import compliance reviews.

Original TRQ framework remains otherwise intact

The underlying scheme continues to cover import of up to 10 lakh metric tonnes of raw sugar and a one-time option for eligible Advance Authorisation holders to convert to the TRQ route. The original Public Notice opened the application window from 21 August to 28 August 2026 for eligible millers and refiners possessing their own functional capacity to convert raw sugar into white or refined sugar.

Applicants are required to file through DGFT's Import Management System and support their refining-capacity declaration with documentary evidence. The original framework also provides for scrutiny by the Exim Facilitation Committee, which may consider factors such as refining capacity, quantity requested and import history.

Other important conditions continue

The original Public Notice requires TRQ holders to submit details of letters of credit or confirmed contracts within 15 days of obtaining the authorisation. It also permits surrender of unutilised quantity within 15 days of issue of the TRQ authorisation, subject to payment equivalent to 0.5% of the CIF value of the surrendered quantity. DGFT may reallocate surrendered quantity.

Another core condition is the processing ratio: for every 1.05 kg of raw sugar covered under the TRQ authorisation, the holder must produce and sell 1 kg of refined sugar in the domestic market. The corrigendum changes the timing framework for completing the processing and sale, not the underlying conversion requirement.

What businesses should do now

- Update TRQ compliance trackers so that the deadline is calculated separately for each bill of entry.

- Link customs documentation with production and domestic-sale records for each imported lot.

- Review contracts, logistics schedules and refinery capacity against the new two-month window.

- Ensure finance and tax teams preserve evidence needed to demonstrate timely processing and domestic sale.

- Continue complying with all other conditions of Public Notice No. 27/2026-2027 because the corrigendum leaves them unchanged.

The 24 August corrigendum is not an increase in the raw sugar quota. It is a change in the compliance clock. Participating importers no longer face a single 31 October deadline for all TRQ imports; instead, each consignment must be processed and the resulting refined sugar sold domestically within two months of the relevant bill-of-entry filing date. For CAs and finance teams, consignment-wise deadline control will now be central to compliance.

Key takeaway

The corrigendum changes a live compliance deadline after the original TRQ modalities were issued, creating immediate search and operational relevance for importers, refiners, CAs and trade-compliance teams.