Amendment in Para 2.107 (TRQ under FTA/CECA) of Handbook of Procedure 2015 2020.

## Report on Amendment to Foreign Trade Policy 2015-2020 Regarding Tariff Rate Quotas (TRQs) **1. Executive Summary:** This report analyzes a Public Notice issued by the Directorate General of Foreign Trade (DGFT) on October 6, 2022. This notice amends the Foreign Trade Policy (FTP) 2015-2020, specifically modifying Annexure IV of Appendix 2A. The core purpose of this amendment is to extend the deadline for TRQ applications under tariff head 7108 for the third quarter of FY2022-23 and to revalidate previously issued TRQs for the first and second quarters of the same fiscal year. Key findings indicate an effort to provide additional time for businesses to utilize and apply for TRQs. **2. Introduction:** This report aims to provide a detailed analysis of Public Notice No. 28/2015-2020, dated October 6, 2022, issued by the DGFT. This notice introduces amendments to the Foreign Trade Policy 2015-2020. The analysis is based solely on the information provided within the document. **3. Policy Overview:** * **Amendment:** This Public Notice amends Annexure IV of Appendix 2A, which was notified vide Public Notice No. 06/2015-2020 dated 01.05.2022 and Public Notice 23/2015-2020 dated 29.08.2022. * **Core Objective(s):** Based on the provided text, the core objective of this amendment is to provide flexibility and extended timelines for businesses involved in importing goods under tariff head 7108 using the Tariff Rate Quota (TRQ) mechanism. **4. Background and Rationale:** This amendment likely responds to unforeseen circumstances or administrative bottlenecks affecting the timely application and utilization of TRQs under tariff head 7108. The extension of the application deadline for the third quarter of FY2022-23 suggests that businesses may have faced difficulties in meeting the original deadline. The revalidation of TRQs for the first and second quarters indicates a need to allow businesses more time to import goods under previously allocated quotas, perhaps due to supply chain disruptions or other logistical challenges. **5. Key Provisions / Changes:** This Public Notice introduces the following changes: * **Change 1: Extension of Application Deadline for TRQ (3rd Quarter FY2022-23):** * **Original Policy (Implied):** The original deadline for TRQ applications under tariff head 7108 for the 3rd Quarter of FY2022-23 was 31.08.2022. * **New Rule:** The last date for application for TRQ under tariff head 7108 for the 3rd Quarter of FY2022-23 has been extended to 10.10.2022. * **Effect of Change:** Businesses now have additional time to prepare and submit their TRQ applications for the specified period, potentially increasing the uptake of available quotas. * **Change 2: Revalidation of TRQs (1st and 2nd Quarter FY2022-23):** * **Original Policy (Implied):** TRQs issued for the 1st and 2nd Quarter of FY2022-23 under tariff head 7108 likely had an expiration date. * **New Rule:** TRQs already issued for import under tariff head 7108 during 1st and 2nd Quarter of the FY2022-23 shall be revalidated from 30.09.2022 to 30.11.2022. * **Effect of Change:** Businesses holding TRQs for the specified periods can now revalidate them and continue to import goods under the quota until 30.11.2022. * The TRQ Allottees may apply for revalidation online using the following steps: DGFT Website https:dgft.gov.in Services Import Management System Tariff Rate Quota TRQ **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are businesses and importers involved in trading goods under tariff head 7108. These include: * Companies that had previously applied for or been allocated TRQs for the 1st and 2nd quarters of FY2022-23. * Companies intending to apply for TRQs for the 3rd quarter of FY2022-23. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is the responsible agency for implementing and overseeing these changes. * **Timelines:** * Revalidation of TRQs for the 1st and 2nd quarters of FY2022-23 is possible from 30.09.2022 to 30.11.2022. * The extended deadline for TRQ applications for the 3rd quarter of FY2022-23 is 10.10.2022. * **Procedures:** * The TRQ Allottees may apply for revalidation online using the DGFT Website. **8. Expected Outcomes / Impact of Changes:** The intended outcomes of these changes are likely to: * **Increase TRQ Utilization:** By extending the application deadline and revalidating existing TRQs, the DGFT aims to increase the utilization of available quotas, potentially boosting trade volumes under tariff head 7108. * **Reduce Administrative Burden:** The online revalidation process likely simplifies the process for businesses, reducing administrative hurdles. * **Facilitate Trade:** The extended timelines provide businesses with more flexibility to manage their import schedules, contributing to smoother trade operations. **9. Conclusion:** The Public Notice dated October 6, 2022, introduces targeted amendments to the Foreign Trade Policy 2015-2020. These changes, specifically the extension of application deadlines and the revalidation of existing TRQs, are designed to facilitate trade, improve TRQ utilization, and offer businesses greater flexibility in their import operations under tariff head 7108. These adjustments reflect a responsive approach to address potential challenges faced by businesses and promote a more efficient trade environment.

Key Entities Referenced