Home India Ministry of Commerce and Industry Allocation of additional quantity for export of raw sugar to...
Date: 2021-11-23 Category: Extra Ordinary State: Union Government Country: India

Allocation of additional quantity for export of raw sugar to USA under Tariff Rate Quota TRQ for the Fiscal Year

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Executive Summary & Key Takeaways

## Report on Public Notice Regarding Additional Raw Sugar Export Allocation to the USA under Tariff Rate Quota (TRQ) **1. Executive Summary:** This report analyzes a Public Notice issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, dated November 23, 2021. This notice amends existing policy by allocating an additional quantity of 303 MT of raw sugar for export to the USA under the Tariff Rate Quota (TRQ) scheme for the fiscal year 2021 (October 1, 2020 to December 31, 2021). The key finding is that this amendment increases the total allowable export of raw sugar to the USA under TRQ to 8727 MT for the specified period. **2. Introduction:** This report provides an informative analysis of Public Notice No. 39/2015-2020, issued by the Directorate General of Foreign Trade on November 23, 2021. The analysis is based solely on the content of the provided text, focusing on the impact of the allocation of additional raw sugar to the USA for export. **3. Policy Overview:** * This Public Notice is an **Amendment** to the existing Foreign Trade Policy 2015-2020, specifically addressing the export of raw sugar to the USA under TRQ for fiscal year 2021. * **Core Objective(s):** To allocate an additional quantity of raw sugar for export to the USA under the Tariff Rate Quota (TRQ) scheme. **4. Background and Rationale:** This specific amendment likely addresses the need to increase the export quantity of raw sugar to the USA to meet demand within the TRQ framework. The rationale is explicitly stated as allocation of an "additional quantity" of 303 MT of raw sugar for export. There may be a desire to improve trade relations, fulfill existing agreements, or take advantage of market opportunities within the TRQ framework. **5. Key Provisions / Changes:** This Public Notice acts as an amendment, and the following reflects the changes introduced by the amendment text: * **Part of the Original Policy Being Changed:** This Public Notice amends the export quantities originally set forth under Public Notice No. 33/2015-2020 dated 18.12.2020. * **New Rule/Provision:** An additional quantity of 303 MT of raw sugar is allocated for export to the USA under the TRQ for the fiscal year 2021 (October 1, 2020 to December 31, 2021). * **Difference/Effect of Change:** The total quantity of raw sugar that can be exported to the USA under the TRQ for the fiscal year 2021 increases from 8424 MT to 8727 MT (8424+303). This change provides exporters with the opportunity to ship a larger volume of raw sugar to the US market under the TRQ. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders include: * **Indian raw sugar exporters:** These entities are directly affected by the increased export quota. * **The US sugar market:** Increased supply under the TRQ may have an impact on pricing and availability. * **Directorate General of Foreign Trade (DGFT):** The responsible body for implementing and overseeing the TRQ scheme. * **Additional Director General of Foreign Trade, Mumbai:** Responsible for issuing Certificate of Origin. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing this amendment. The Additional Director General of Foreign Trade, Mumbai, is responsible for issuing the Certificate of Origin, if required. * **Timelines/procedures:** The increased allocation is valid until December 31, 2021. Exporters must adhere to the conditions notified in Notification No. 32/2015-2020 dated 20.04.2015, and continue to follow the reporting requirements as per Public Notice No. 33/2015-2020 dated 18.12.2020. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this amendment is to facilitate the export of an additional 303 MT of raw sugar to the USA under the TRQ scheme. The potential impact of the amendment includes: * Increased export revenue for Indian sugar exporters. * Greater market access for Indian raw sugar in the US market within the TRQ limitations. **9. Conclusion:** The Public Notice issued by the DGFT allocates an additional 303 MT of raw sugar for export to the USA under the TRQ scheme for the fiscal year 2021. This amendment increases the total exportable quantity to 8727 MT and provides an opportunity for Indian exporters to increase their sales in the US market. Compliance with existing regulations and reporting requirements remains crucial for successful implementation.

Key Entities Referenced

NEW DELHI: Capital of India, place of publication of the notification. Fiscal Year 2021: Financial year relevant to the policy, spanning from October 1, 2020, to December 31, 2021. Foreign Trade Policy, 2015-2020: A trade policy under which the Director General of Foreign Trade is conferred powers. Director General of Foreign Trade: The authority allocating additional quantity of raw sugar for export. USA: United States of America, the destination for the export of raw sugar under the Tariff Rate Quota (TRQ). Tariff Rate Quota TRQ: A quota system under which a specific quantity of a product can be imported at a reduced tariff rate. Public Notice No. 33/2015-20: A public notice dated 18.12.2020 related to the allocated quantity of sugar for export. Also contains reporting requirements. Notification No. 3/2015-20: A notification dated 20.04.2015 containing restrictions on the export of sugar. Amit Yadav: Director General of Foreign Trade and Ex-officio Additional Secretary. Mumbai, Maharashtra: Location of the Additional Director General of Foreign Trade, responsible for issuing Certificate of Origin. Ministry of Commerce and Industry: Parent ministry of the Directorate General of Foreign Trade Department of Commerce: Department under which the Directorate General of Foreign Trade operates.
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