TRQ Scheme | Tariff Rate Quota Scheme DGFT | All You Need To Know

The Tariff Rate Quota (TRQ) Scheme is a valuable tool for importers in India, offering substantial discounts on import duties for specified products imported from specific countries. Introduced by the Directorate General of Foreign Trade (DGFT), the scheme is designed to encourage international trade and boost imports of key commodities by reducing the financial burden of high tariffs.
The TRQ mechanism operates by setting a predefined quota-either by quantity or value-on the import of certain goods. Importers can take advantage of lower or even nil import duties within this quota limit. However, once the quota is met, standard tariff rates are enforced. In some cases, the government may even restrict further imports of the product once the quota is exhausted.
The scheme covers a range of products across different trade agreements such as the India-Mercusor Trade Agreement, India-UAE CEPA, and India-Australia ECTA, among others. Eligible products vary depending on the agreement, including crude soya oil, vanaspati, pepper, fruits, apparel, specialty sugar, lentils, and more. For example, importers can bring in crude soya oil from Paraguay or apparel from Sri Lanka at discounted rates, provided the set quotas are not exceeded.
TRQ eligibility is open to manufacturer-exporters, merchant exporters tied to supporting manufacturers, and service exporters. To apply for TRQ benefits, importers must submit pre-purchase agreements with exporters from the designated countries, and a Certificate of Origin at the time of customs clearance.
How can A V International help you in obtaining benefits of TRQ Scheme?
A V International proudly stands as India's foremost DGFT consulting firm. We specialize in offering expert guidance on free trade agreements and optimizing the advantages provided by the DGFT's Tariff Rate Quota (TRQ) mechanism. With an extensive client base exceeding 700 exporters, we consistently provide invaluable support in this domain.
To explore further details about our company, we invite you to visit our website at avigroup.in/
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