DGFT introduces E-tariff rate quota (TRQ) system for imports

Ashish M. Shaji

12 May, 2021

The Director General of Foreign Trade recently introduced the online e-tariff rate quota system for imports. Applicants seeking tariff rate quota for imports can apply online under the e-tariff rate quota in the import management system. In this article, we shall discuss this facility in detail.

DGFT Trade Notice

The DGFT, in its trade notice, announced the following information:

• From 8^th February 2021, applicants seeking tariff rate quota for imports can apply online through importer’s dashboard on the DGFT web portal;
• For such applications that have been already submitted for the financial year 2021-22 and that are yet to be processed, will be migrated to the new system;
• In case of any request for amendment of the TRQ licenses which is issued on or after Feb 8, 2021, should be submitted electronically through the TRQ system;
•   Licenses for all TRQs shall be electronically issued, and such license data shall be transmitted electronically to the customs authorities;
• There would be no paper copies of the TRQ import license issued by the Director General of Foreign Trade from Feb 8, 2021.

What is Tariff Rate Quota?

It is a mechanism that permits a set quantity of specific products that are to be imported. These items are according to the particular custom notification associated with it. Tariff quotas are used on numerous products, out of which most are in the agriculture sector.

The TRQ is allotted to the importer by the DGFT following paragraph 2.62 of the handbook of procedures, 2015-20. The TRQ authorization will contain name and the address of the importer, IEC code, customs notification no., sub-heading or tariff item applicable, quantity and certificate validity period.

The TRQ authorization will be electronically issued by the DGFT and shall be transmitted to the ICES system. Imports made against the TRQ would be permitted only on debiting the TRQ quantity electronically in the ICES system.

Who all will benefit from the Tariff Rate Quota Scheme?

The following persons will get benefitted:

• Manufacturer exporters with or without supporting manufacturer;
• Merchant exporters tied to supporting exporters;
• Service provider.

What are the pre-requisites for applying for TRQ authorization?

Following pre-requisites are required:

• The DGFT user profile should be linked with IEC code;
• A valid Digital Signature certificate should be registered in the system;
• GSTN details corresponding to the branches of the IEC are required.

Fee for Tariff rate quota application

A registration fee of 1 thousand rupees subject to minimum 500 rupees and a maximum of 1 lakh rupees on CIF amount of the authorization will have to be paid via electronic mode in the online system for every application for authorization issuance.

It may be noted that the TRQ authorization shall be valid for imports for 1 year from the authorization issuance date.

What is the application procedure for Tariff rate quota?

The application procedure to apply for the e-tariff rate quota in the import management system via importer’s dashboard on the DGFT website is provided below.

New user registration

• Access the DGFT website^[1] and proceed with the process of registration. Enter the registration details and choose register user as importer/exporter.
• Enter the one time password received on email and mobile number. On successful OTP validation, you will receive a notification containing temporary password, which must be changed upon first login. 

Apply for Tariff rate quota application

• Navigate to services after logging into the DGFT web portal and select import management system, and click the TRQ option;
• On the tile- Apply for TRQ, click on the explore link;
• On the application type screen, enter the values on the screen and select Save and Next option;
•  On firm details screen, enter all the input values required and select Save and Next option;
• On import details screen, furnish the input values required in the import item details, details of imports and select Save and Next option;
• Once the details on the import details tab is entered, the user would be directed to the port details tab;
• Based on the value selected from the purpose of import dropdown on port details screen, ribbon would be displayed on the other details screen. User must fill the input values on the other details screen and select Save and Next option.

Declaration Section

• In this section, accept the terms and conditions by clicking on the checkbox and provide all the details required and select Save and Next option.
• On the application summary screen, tick the acceptance of declaration check box and click on the sign button in order to sign the application through digital token. 

Payment

• On clicking the sign option, the option- payment for apply of TRQ would be displayed;
• Proceed to make the payment.

Conclusion

It may be noted that help manual and FAQs are also set up on the website of Director General of Foreign Trade to facilitate change into the e-tariff rate quota system.

Read our article: All about New Foreign Trade Policy 2021-26