Government of India Issues Customs Duty Exemption for Raw Sugar Imports

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Dated: 22.08.2026

Government of India Issues Customs Duty Exemption for Raw Sugar Imports

The Ministry of Finance, Department of Revenue, has released Notification No. 30/2026-Customs, introducing a significant customs duty exemption for raw sugar imports into India. This move, published in the Gazette of India, aims to address public interest concerns and ensure the steady supply of raw sugar in the country.

Key Highlights of the Notification

Customs Duty Exemption
- The Central Government, exercising its powers under Section 25(1) of the Customs Act, 1962, has exempted raw sugar imports from the entire customs duty, provided certain conditions are met.
Tariff Rate Quota (TRQ) System
- The exemption applies specifically to raw sugar falling under tariff heading 1701 of the First Schedule to the Customs Tariff Act, 1975.
- A total import quota of 1,000,000 metric tonnes (MT) has been set for this exemption period.
Eligibility and Allotment Process
- The Directorate General of Foreign Trade (DGFT) is responsible for allotting the TRQ to eligible importers, following the procedures outlined in the Hand Book of Procedures, 2023.
- TRQ authorizations will include the importer’s name, address, Importer-Exporter Code (IEC), customs notification number, tariff heading, authorized quantity, and validity period.
- All authorizations are issued electronically and transmitted to the Indian Customs EDI System (ICES).
Import Procedure
- Imports under the TRQ are permitted only after the authorized quantity is electronically debited in the ICES system, ensuring transparency and real-time tracking.
Validity Period
- This notification is effective immediately and remains valid up to and including 31st October, 2026.

Implications for Importers and the Sugar Industry

Importers: Eligible importers must secure TRQ authorization from the DGFT and ensure compliance with all electronic procedures for customs clearance.
Sugar Industry: The exemption is expected to stabilize domestic sugar supply, potentially moderating prices and supporting downstream industries.
Trade Facilitation: The electronic issuance and tracking of TRQ authorizations streamline the import process, reducing paperwork and enhancing efficiency.

Steps for Importers to Avail the Exemption

Apply for TRQ Authorization: Submit an application to the DGFT as per the Hand Book of Procedures, 2023.
Receive Electronic Authorization: Ensure all details are correct and authorization is transmitted to ICES.
Import Raw Sugar: Proceed with imports, ensuring the authorized quantity is debited in the ICES system.
Comply with Validity: Complete all imports before 31st October, 2026, to benefit from the exemption.

Conclusion

This customs duty exemption for raw sugar imports under Notification No. 30/2026-Customs is a strategic measure by the Government of India to support the domestic market and ensure food security. Importers and stakeholders should act promptly to utilize this opportunity within the stipulated timeframe.

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Source: CBIC, Ministry of Finance, Govt. of India

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