Online E-Tariff Rate Quota System for Imports
Online E-Tariff Rate Quota System for Imports
As part of the IT Revamp, the DGFT has introduced the Online E-Tariff Rate Quota System for Imports vide a Trade notification dated 4th February 2021. All applicants seeking Tariff Rate Quota (TRQ) for imports are required to apply online under “e-Tariff Rate Quota” in the Import Management System, through the DGFT Website. The current article briefs the Online E-Tariff Rate Quota System for Imports.
The Gist of DGFT Trade Notice
The Direct General of Foreign Trade has announced the following information to importers.
- With effect from 8th February 2021 onwards, all applicants seeking Tariff Rate Quota (TRQ) for imports need to apply online under “e-Tariff Rate Quota” in the Import Management System, through importer’s dashboard on the DGFT Web portal.
- For TRQ applications which have already been submitted for Financial Year 2021-2022 and are yet to be processed, these applications will be migrated to the new system.
- Any request for amendment of the TRQ licenses, issued on or after 8th February 2021, is required to be submitted electronically only through the thee-TRQ system.
- Further, licenses for all TRQs would be issued electronically and TRQ License data would be transmitted electronically to the Customs Authorities.
- No paper copies of the TRQ Import license will be issued by DGFT with effect from 8th February 2021.
Tariff Rate Quota
The Tariff Rate Quota is a mechanism that allows a set quantity of specific products to be imported. These specific items are as per the particular custom notification associated with it. Tariff quotas are used on a wide range of products, but most are in the agriculture sector.
- As mentioned above, the TRQ is allotted to the importer by the Directorate General of Foreign Trade, following paragraph 2.62 of the Handbook of Procedures, 2015-2020.
- The TRQ authorization shall contain name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of the certificate
- The TRQ authorization shall be issued electronically by the Directorate General of Foreign Trade and transmitted to the ICES system
- Imports made against the TRQ shall be allowed only upon debiting the TRQ quantity electronically in the ICES system
Applicability of TRQ
The following persons will get benefit from the Tariff Rate Quota scheme:
- Manufacturer exporters with or without supporting manufacturer
- Merchant exporters tied to supporting manufacturers
- Service provider
Prerequisites for applying TRQ Authorization
To apply for Tariff Rate Quota, the following are the prerequisites required:
- The DGFT user profile must be linked with an importer-exporter Code
- A valid DSC must be registered in the system
- GSTN details corresponding to the branches of the IEC
The Applicable fee for TRQ Application
A registration fee of Rs. 1 per thousand subjects to a minimum of Rs. 500 and a maximum of Rs. 1 Lakh on CIF amount of the authorization will need to be paid through electronic mode in the online system for each application for issuance of the authorization
TRQ Authorization Validity
TRQ authorization will be valid for imports for 1 year from the date of issuance of the authorization
There are no mandatory attachments; however, the applicant can attach the Pre-purchase agreement.
Application Procedure for Tariff Rate Quota (TRQ)
The application procedure for applying the e-Tariff Rate Quota in the Import Management System, through the importer’s dashboard on the DGFT Website is as follows:
New User Registration
- Access the DGFT website and proceed with the registration process. Provide the Registration Details and Select Register User as “Importer/Exporter”.
- Furnish the OTPs received on email and mobile number, Upon Successful validation of the OTP; you can receive a notification containing the temporary password which you need to change upon the first login.
Apply for TRQ Application
- After login to the DGFT web portal, navigate to Services and then select Import Management system and click on TRQ option.
- On Apply for TRQ tile, the user needs to click on the “Explore” link.
Note: Select the “Start Fresh Application” button or “Proceed with Existing Application” Button in case the user has already saved a draft application.
- On the “Application Type” screen, provide the values on screen and click on “Save and Next” option.
- On “Firm’s details” screen, provide all the required input values and click on the “Save and Next” button.
- On “Import Details” screen, furnish the required input values in “Import Item Details”, Details Of Imports” and click on “Save and Next” button
- User can add multiple items and licenses and bulk upload items if needed as shown below:
- After entering details on the Import Details tab and Save and Next button, the user will be redirected to “Port details tab
- Based on value selected from Purpose of Import dropdown on “Port Details” screen, the ribbon will be displayed on the “Other Details” screen. User needs to fill the input values on the “Other Details” screen and click on “Save and Next” button.
Uploading attachment is not mandatory, in case user need to upload any requirement they can upload and click on the “Save and Next” button.
- On the “Declaration” tab, the user needs to accept the terms and conditions by clicking on the checkbox. Provide all required details and click “Save and Next” button.
- On the “Application Summary” screen select the acceptance of declaration check box and click on the Sign button to sign the application using digital token.
- By clicking the “Sign” button, the “Payment for Apply for TRQ” button will be displayed.
- Confirm and proceed to make the payment against the application. The system calculates the application payment value automatically
After Successful Payment, the Page shall be redirected to the DGFT Website and the receipt shall be displayed, the user can also download the receipt.