Inclusion of changes made in provisions in continuation to Public Notice No 10 2015 20 dated 24 May 2022 and Public Notice No 15 2015 20 dated 14 June 2022

## Report on Amendments to Foreign Trade Policy Regarding Tariff Rate Quota (TRQ) Allocation **1. Executive Summary:** This report analyzes amendments to the Foreign Trade Policy 2015-2020, specifically focusing on provisions related to the allocation and utilization of Tariff Rate Quotas (TRQs) for imported commodities. The amendments, detailed in Public Notice No. 24/2015-2020, aim to improve the monitoring of TRQ utilization, ensure efficient allocation, and address the issue of unutilized quantities. Key changes require TRQ allottees to provide detailed information on planned imports and surrender unutilized quantities by a specified deadline. Failure to comply may result in TRQ cancellation and reallocation. The changes impact all TRQ allottees, particularly those importing crude soybean and sunflower oil. **2. Introduction:** This report provides an overview and analysis of the amendments introduced through Public Notice No. 24/2015-2020, dated September 12, 2022, to the Foreign Trade Policy 2015-2020. The analysis is based solely on the provided text and aims to inform affected industry stakeholders about the key changes related to TRQ allocation and utilization. **3. Policy Overview:** * This Public Notice No. 24/2015-2020 amends Para 2 of Public Notice No. 10/2015-2020 dated 24.05.2022 read with Public Notice No. 15/2015-2020 dated 14.06.2022. * **Core Objective(s):** To improve the management of Tariff Rate Quotas (TRQs) by: * Monitoring planned imports under TRQ allocations. * Facilitating the surrender of unutilized or partially utilized TRQ quantities. * Ensuring efficient reallocation of TRQs to other eligible importers. * Addressing unutilized quantities for crude soybean and sunflower oil imports. **4. Background and Rationale:** The amendment likely addresses inefficiencies in the TRQ allocation process, specifically the underutilization of allocated quotas. By mandating the provision of information on planned imports and the surrender of unused quantities, the Directorate General of Foreign Trade (DGFT) aims to gain better visibility into TRQ usage and reallocate unused quotas to importers who can utilize them effectively. This suggests a prior problem of allocated TRQs remaining unused, potentially hindering trade and market access for certain commodities. **5. Key Provisions / Changes:** This amendment introduces the following key changes: * **Addition of new provisions under para 2:** * **Provision xii:** Requires all TRQ allottees who are yet to effect imports under TRQ allocated to provide details of imports planned under TRQ. Information and proof of purchase/import arrangements, such as details of advance payment along with purchase contract, Letter of Credit along with the SWIFT Output Message Reference date, and other supporting documents shall be sent to the email ids: ddg1import[at]dgft[dot]gov[dot]in and policy2[at]dgft[dot]gov[dot]in latest by 20.09.2022. * **Effect:** This provision adds a new reporting requirement for TRQ allottees. Allotees must submit planned import details along with documentary evidence by September 20, 2022, for allocated TRQs that have not yet been used. * **Provision xiii:** In case of possible non-utilization of quantities allocated or partial utilization, the TRQ allottees shall intimate this directorate for surrender of specific quantities. Details of the quantities to be surrendered shall be sent via email to the following email ids: ddg1import[at]dgft[dot]gov[dot]in and policy2[at]dgft[dot]gov[dot]in latest by 20.09.2022. * **Effect:** This change establishes a mechanism for TRQ allottees to voluntarily surrender unused or partially used quantities. This surrender must be communicated with details of the quantities to be surrendered, again by September 20, 2022. * **Provision xiv:** Failure to comply with the above directions shall result in cancellation and reallocation of TRQ to other eligible Importers after 20.09.2022. * **Effect:** Establishes a penalty for non-compliance with the reporting requirements, allowing for the cancellation and reallocation of TRQs to other eligible importers. * **Reiteration of Para 2xi of Public Notice 15/2015-2020:** Para 2xi of Public Notice 15201520 dated 14.07.2022 is additionally reiterated for information of all TRQ Allottees The unutilized quantities i.e., quantities not imported by the TRQ Licensees by the end of the current import period, shall be deducted from the proposed allocations during the next period, i.e., 202324. * **Effect:** Reinforces the existing rule that unutilized quantities by the end of the current import period will be deducted from future TRQ allocations, extending this provision to the allocation process for the upcoming 2023-24 period. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders directly affected by these changes are: * All TRQ allottees, particularly those who have been allocated TRQs but have not yet completed their imports. * Importers of crude soybean oil and crude sunflower oil operating under TRQ. * Other eligible importers who may benefit from the reallocation of cancelled TRQs. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** Directorate General of Foreign Trade (DGFT). * **Timelines:** * TRQ allottees must provide details of planned imports and surrender unutilized quantities by **September 20, 2022**. * Cancellation and reallocation of TRQs will occur **after September 20, 2022**. * **Procedures:** * Submission of planned import details and surrender notifications via email to ddg1import[at]dgft[dot]gov[dot]in and policy2[at]dgft[dot]gov[dot]in. **8. Expected Outcomes / Impact of Changes:** The intended outcomes of these amendments are likely to include: * Improved monitoring of TRQ utilization by the DGFT. * More efficient allocation of TRQs by facilitating the surrender and reallocation of unused quantities. * Reduced instances of TRQs remaining unutilized, potentially leading to increased trade and market access for relevant commodities. * Greater accountability among TRQ allottees regarding the utilization of allocated quotas. **9. Conclusion:** The amendments introduced through Public Notice No. 24/2015-2020 aim to streamline and improve the management of TRQs within the Foreign Trade Policy framework. By mandating reporting requirements and facilitating the surrender of unused quotas, the DGFT seeks to ensure that TRQs are allocated efficiently and utilized effectively, contributing to enhanced trade and market access. Compliance with the new requirements by the stipulated deadline is crucial for TRQ allottees to avoid cancellation and reallocation of their quotas.

Key Entities Referenced