Notification No.– 31/2026-27
Dated: 20th August, 2026
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has introduced a 10 lakh metric tonne (MT) Tariff Rate Quota (TRQ) for duty-free imports of Raw Sugar (Exim Code 170114) under Chapter 17 of ITC (HS), 2022. The quota will remain available until 31st October 2026, subject to the prescribed conditions.
The notification also gives eligible holders of Advance Authorisations issued under SION E52 a one-time option to shift qualifying existing import quantities to the new TRQ framework.
What Has Changed
The notification introduces a temporary duty-free import quota while providing a conversion option for certain existing Advance Authorisations.
New 10 Lakh MT Duty-Free TRQ
Raw Sugar under Exim Code 170114 continues to remain under the “Free” import policy. In addition, DGFT has opened a 10 lakh MT Tariff Rate Quota for Raw Sugar imports.
Imports under this quota will receive the applicable duty-free treatment, subject to the conditions prescribed by DGFT. The quota is available until 31st October 2026.
One-Time Option for Existing Advance Authorisations
Holders of Advance Authorisations issued under SION E52 for Raw Sugar imports can opt, on a one-time basis, to shift their eligible existing import quantity to the new TRQ framework.
The provision covers Raw Sugar already imported under the relevant Advance Authorisation up to the date of the notification, including refined sugar already produced or yet to be produced from that imported Raw Sugar.
Conditions for the Conversion
The conversion option comes with specific requirements for importers choosing to shift from the Advance Authorisation framework to the new TRQ.
- GST repayment: The importer must repay the GST exemption availed at the time of import.
- Domestic sale: Refined sugar manufactured from the imported Raw Sugar must be sold in the domestic market by 31st October 2026.
- Other conditions: The conversion will also be subject to additional conditions prescribed by DGFT.
What Happens Next
The notification establishes the framework but does not provide the complete operational procedure. DGFT will issue a separate Public Notice specifying the process for allocation of the TRQ and conversion of eligible Advance Authorisations.
Importers should therefore refer to the subsequent Public Notice before applying under the new quota or exercising the conversion option.
Conclusion
DGFT Notification No. 31/2026-27 creates a 10 lakh MT duty-free TRQ for Raw Sugar imports until 31st October 2026 and provides eligible SION E52 Advance Authorisation holders with a one-time conversion option. The detailed procedure and additional requirements will follow through a separate Public Notice.
To view the DGFT notification, click here.
For further clarification or guidance, you may connect with our professional DGFT consultants.
