Government Allows Duty-Free Import of 10 Lakh MT Raw Sugar Under TRQ Until October 31, 2026

The Central Government has opened a tariff-rate quota for the duty-free import of 10,00,000 metric tonnes of raw sugar, with the concession available only through the prescribed Directorate General of Foreign Trade and Customs electronic process. The measure is identified as G.S.R. 755(E) and is stated to remain in force up to and including 31 October 2026.

For importers and finance or indirect-tax teams, the practical point is that the exemption is not a blanket zero-duty treatment for every raw-sugar consignment. It is tied to a quantified tariff-rate quota and to a DGFT authorisation that must be transmitted electronically to the Indian Customs EDI System.

What the customs measure provides

The notification operates under section 25(1) of the Customs Act, 1962. It covers raw sugar falling under tariff heading 1701 and fixes the TRQ quantity at 10,00,000 MT. Imports made within the authorised quota are exempted from the whole of the customs duty leviable under the First Schedule to the Customs Tariff Act, 1975, subject to the notification's stated conditions.

The measure comes into force immediately and is time-bound. The stated sunset is 31 October 2026, so importers relying on the concession need to align allocation, shipment, clearance and electronic debiting within the validity period of the relevant authorisation.

DGFT allotment is central to eligibility

The TRQ is to be allotted by the Directorate General of Foreign Trade in accordance with the relevant procedure under the Handbook of Procedures, 2023. The authorisation is expected to identify the importer and the exact quota being used rather than functioning as a general sector-wide permission.

The specified authorisation details include the importer's name and address, Importer-Exporter Code, the applicable Customs notification number, tariff heading, quantity and validity period. This makes consistency between commercial documentation, DGFT records and the Customs declaration especially important.

Electronic transmission and ICES debit

The notification also builds the quota control into the electronic Customs workflow. DGFT is to issue the TRQ authorisation electronically and transmit it to the Indian Customs EDI System. Imports against the quota are allowed only when the quantity is electronically debited in ICES.

That condition matters operationally. An importer may have a commercial contract for raw sugar, but the duty concession depends on the authorised quota being available and correctly reflected in the Customs system at clearance. Import, tax and treasury teams should therefore avoid treating the exemption as assured until the authorisation and electronic quota position are confirmed.

What finance and customs teams should check

- Quota allocation: confirm that the importer has a valid DGFT TRQ allotment for the relevant quantity.

- IEC and entity details: ensure the authorisation details match the importer making the Customs declaration.

- Tariff classification: verify that the consignment falls within tariff heading 1701 and meets the description covered by the measure.

- Validity: track the authorisation period and the overall notification validity through 31 October 2026.

- ICES balance: confirm that the quantity is transmitted and available for electronic debit at the time of clearance.

Because the concession removes the whole of the specified customs duty within the TRQ, it can materially affect landed cost, working-capital planning and purchase pricing. Importers should keep the DGFT authorisation, Customs declaration and electronic debit trail together in the transaction file so the basis for claiming the concession is readily demonstrable.

Key takeaway

The new measure creates a 10 lakh MT duty-free raw sugar import window, but eligibility is controlled through DGFT allocation and ICES. Businesses planning imports should focus as much on quota and electronic documentation as on the headline duty exemption, and should verify the final notification text and their authorisation before claiming the benefit.