DGFT Tightens Timeline for Processing and Sale of Imported Raw Sugar Under TRQ Scheme

“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”

Dated: 25.08.2026

DGFT Tightens Timeline for Processing and Sale of Imported Raw Sugar Under TRQ Scheme

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued a corrigendum to Public Notice No. 27/2026-2027 regarding the modalities for the application and distribution of the Tariff Rate Quota (TRQ) for the import of 10 lakh metric tonnes (MT) of raw sugar. This update also addresses the one-time conversion from the Advance Authorisation (AA) Scheme to the TRQ Scheme.

Background

The original Public Notice No. 27/2026-2027, dated 20 August 2026, outlined the procedures for importing raw sugar under the TRQ scheme. The TRQ allows a specified quantity of raw sugar to be imported at a reduced tariff rate, supporting domestic supply and price stability. The notice also provided an option for eligible importers to convert their Advance Authorisation to the TRQ scheme on a one-time basis.

Key Amendment in the Corrigendum

The corrigendum, dated 24 August 2026, introduces a significant change to Paragraph 7(c) of the original notice. The amendment is as follows:

Previous Requirement:
- Importers were required to process raw sugar into white/refined sugar within a reasonable period after import, ensuring its sale in the domestic market by 31 October 2026.
Revised Requirement:
- Importers must now process the raw sugar into white/refined sugar and sell it in the domestic market within a period not exceeding two months from the date of filing the bill of entry.

Implications of the Amendment

Stricter Timeline:
- The new rule imposes a fixed two-month window for processing and selling imported sugar, replacing the earlier flexible deadline of 31 October 2026.
- This ensures faster turnaround and timely availability of white/refined sugar in the domestic market.
Operational Impact:
- Importers must plan logistics, processing, and distribution more efficiently to comply with the new timeline.
- Delays in processing or sales beyond the two-month period could lead to non-compliance and potential penalties.
Market Stability:
- The amendment aims to prevent stockpiling and ensure that imported sugar reaches consumers promptly, supporting price stability and supply adequacy.

Other Terms Unchanged

All other terms and conditions of the original Public Notice No. 27/2026-2027 remain unchanged. Importers should continue to adhere to the existing guidelines for application, eligibility, and documentation under the TRQ scheme.

Conclusion

The corrigendum reflects the government’s commitment to ensuring the timely availability of sugar in the domestic market and maintaining market discipline among importers. Stakeholders are advised to review their import and processing schedules to align with the revised requirements and avoid any compliance issues.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!

We specialize in paralegal services, litigation support, tax and regulatory matters, delivering reliable, efficient, and result-oriented legal assistance.

Source: DGFT

Disclaimer

Handy Download:

DGFT Corrigendum to Public NoticeDownload

Connect with us for more-

@ Team S J EXIM SERVICES, New Delhi, IN

CP: Ms. Shubhra Jha, Founder

Tel: +91-11-4999 2707 I +91-9999005693

Web: www.sjexim.services

EMAIL: operations@sjexim.services I shubhra@sjexim.services

Facebook: www.facebook.com/sjeximservices

LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/