Amendments under Para 2.107 and Appendix 2A of Handbook of Procedure 2015 20 for inclusion of TRQs under India Australia Economic Cooperation and Trade Agreement (Ind Aus ECTA)

## Report on Amendment to Handbook of Procedure 2015-20 Regarding India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) Tariff Rate Quotas (TRQs) **1. Executive Summary:** This report analyzes an amendment to the Handbook of Procedure (HBP) 2015-20, specifically concerning the implementation of Tariff Rate Quotas (TRQs) under the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA). The amendment, enacted through a notification by the Directorate General of Foreign Trade (DGFT), modifies Para 2.107 and Appendix 2A of the HBP to incorporate specific items and related provisions for TRQs under the IndAus ECTA. Key changes involve the inclusion of annual import TRQs for certain goods, outlining procedures for TRQ allocation and certification, and specifying import regulations under these quotas. These amendments aim to operationalize the TRQ mechanism within the IndAus ECTA framework, facilitating trade between India and Australia under preferential tariff rates for specific goods. **2. Introduction:** The purpose of this report is to provide an informative analysis of the amendment to the Handbook of Procedure (HBP) 2015-20 regarding Tariff Rate Quotas (TRQs) under the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA), based solely on the provided policy text. **3. Policy Overview:** * **Amendment:** This document constitutes an amendment to the existing Handbook of Procedure (HBP) 2015-20. * **Core Objective(s):** The core objective of this amendment is to incorporate items and provisions for Tariff Rate Quotas (TRQs) under the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA) into the Handbook of Procedure 2015-20. This is achieved by amending Para 2.107 and Appendix 2A of the HBP. The broader objective, inferred from the text, is to facilitate trade between India and Australia by establishing a mechanism for preferential tariff rates on specific goods under the IndAus ECTA. **4. Background and Rationale:** The amendment is likely necessary to implement the trade commitments made under the IndAus ECTA. The existing Handbook of Procedure seemingly lacked specific provisions for TRQs related to this agreement. This amendment addresses this gap by establishing the procedures for importing goods under the TRQ scheme, ensuring that Indian importers can benefit from the reduced tariff rates negotiated under the ECTA for specific products originating from Australia. The amendment provides clarity on TRQ quantities, application processes, certification requirements, and import regulations to foster smoother trade operations. **5. Key Provisions / Changes:** This amendment specifically alters the Handbook of Procedure 2015-20 by: * **Modifying Para 2.107:** Para 2.107 is amended to include annual import TRQs under the IndAus ECTA for specific HS coded goods, including: * Lentils (07134000) * In-shell almonds (08021100) * Shelled almonds (08021200) * Oranges (08051000) * Mandarins including tangerines and satsumas (08052100) * Pears (08083000) * Extra Long Staple Cotton of minimum 28 mm staple length (52010020) The amendment specifies the "in-quota" rate of duty (50% of the applied rate of duty except for cotton, which is duty free) and the TRQ quantity for the calendar year 2022, and for 2023 onwards, the quantity limits change, presumably reflecting phased implementation. For example, the lentil quota increases significantly from 1,233 MT in 2022 to 150,000 MT from 2023 onward. * **Introducing TRQ allocation and certification procedures:** The amendment stipulates that Australia shall allocate TRQs to exporters/producers by issuing TRQ certificates. The competent authority in Australia must share each TRQ certificate with DGFT via email to specified addresses. Indian importers are required to apply for TRQ certificates through the DGFT website, mandatorily uploading or referencing the Export TRQ issued to the Australian exporter. * **Specifying import regulations:** The amendment mandates that TRQ authorizations issued by DGFT must contain specific information (importer details, IEC, customs notification number, tariff item, quantity, validity period). Imports under TRQ are allowed only upon electronic debiting in the Indian Customs EDI System (ICES). The TRQ import year aligns with the calendar year in India (January 1st to December 31st). TRQ Certificates are valid for a maximum of 12 months or until the end of the year, whichever is earlier. * **Inserting procedure in Appendix 2A:** It also states that the above-mentioned procedure will be inserted under Annexure V of Appendix 2A of Handbook of Procedures 2015-20 **Effect of Changes:** The effect of these changes is to establish a clear and defined process for the utilization of TRQs under the IndAus ECTA. This clarity aims to streamline trade operations for the specified goods, potentially increasing trade volumes between India and Australia under the preferential tariff rates. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by these amendments include: * Indian Importers of the specified goods (Lentils, Almonds, Oranges, Mandarins, Pears, and Extra Long Staple Cotton) from Australia. * Australian Exporters/Producers of these same goods. * The Directorate General of Foreign Trade (DGFT). * Indian Customs authorities. * Competent authorities in Australia responsible for issuing TRQ certificates. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is the primary responsible agency for implementing these amendments in India. Australian competent authorities are responsible for issuing TRQ certificates. Indian Customs authorities are responsible for enforcing the regulations at the point of import. * **Timelines/Procedures:** The amendment specifies that there is no end date for applying for TRQ certificates within a given calendar year. The DGFT will monitor cumulative quantities and cease issuing certificates once the limit is reached. The amendment outlines a detailed procedure for application, certification, and import clearance under the TRQ scheme. Specifically, Australian exporters must obtain a TRQ certificate from their competent authority, who then shares it with the DGFT. The Indian importer then applies for a TRQ certificate on the DGFT website referencing the Australian export TRQ, and if approved, the authorization is issued electronically and transmitted to Indian Customs. * **Changes specific to the amendment**: The email sharing of TRQ certificates from Australia to DGFT and the mandatory uploading/referencing of the export TRQ from Australia by the Indian Importer in their DGFT application are key elements that were not present before the amendment. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these amendments are: * Increased utilization of TRQs under the IndAus ECTA for the specified goods. * Reduced tariff costs for Indian importers of these goods from Australia, enhancing their competitiveness. * Increased export opportunities for Australian producers of these goods to the Indian market. * Streamlined and transparent procedures for TRQ allocation and import clearance, reducing administrative burdens. * Greater trade volumes between India and Australia for the specified commodities, fostering closer economic ties. **9. Conclusion:** This amendment to the Handbook of Procedure 2015-20 is a crucial step in operationalizing the Tariff Rate Quota (TRQ) mechanism under the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA). By incorporating specific items, defining allocation procedures, and specifying import regulations, the amendment provides clarity and structure for stakeholders involved in trade between the two countries. The amendments have the potential to significantly impact trade flows in the specified commodities and foster closer economic cooperation between India and Australia. The specified procedures and requirements must be carefully followed by Indian importers to benefit from the preferential tariff rates offered under the IndAus ECTA.

Key Entities Referenced