The Government has amended the import policy for Raw Sugar classified under Exim Code 170114 of Chapter 17 of Schedule-I (Import Policy) of ITC (HS), 2022, allowing import of 10 lakh metric tonnes (MT) of Raw Sugar duty-free under a Tariff Rate Quota (TRQ) up to 31 October 2026.
The amendment has been notified by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, through Notification No. 31/2026-2027 dated 20 August 2026.
Import of Raw Sugar to remain ‘Free’ subject to 10 lakh MT TRQ
Under the revised policy condition, the import policy for Raw Sugar falling under Exim Code 170114, which is classified as “Free”, will now be subject to a Tariff Rate Quota of 10 lakh MT on a duty-free basis up to 31 October 2026, subject to the conditions prescribed by the Government.
The policy amendment has been issued in exercise of powers conferred under Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, read with Paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023.
One-time conversion from Advance Authorisation to TRQ Scheme
In addition to the 10 lakh MT TRQ, the Government has also provided a one-time option for conversion of Advance Authorisations already issued under SION E52 from the Advance Authorisation Scheme to the Tariff Rate Quota Scheme.
The conversion facility will be available in respect of the quantity of Raw Sugar actually imported under the Advance Authorisations up to the date of the Notification.
The facility will cover refined sugar already produced as well as refined sugar yet to be produced from the imported Raw Sugar available under the concerned Advance Authorisation.
Conversion subject to payment of exempted GST
The one-time conversion from the Advance Authorisation Scheme to the TRQ Scheme will be subject to payment of the exempted GST availed at the time of import.
Further, refined sugar manufactured out of the imported Raw Sugar covered under the conversion facility will be required to be sold in the domestic market by 31 October 2026, along with compliance with such other conditions as may be prescribed.
DGFT to prescribe detailed procedure through Public Notice
The Notification provides that the DGFT will separately prescribe the procedure for administration of the Tariff Rate Quota and for the one-time conversion from the Advance Authorisation Scheme to the TRQ Scheme through a Public Notice.
Accordingly, the operational modalities, including the application process, eligibility requirements, allocation mechanism and compliance conditions, will be governed by the procedure prescribed by DGFT.
Policy measure enables 10 lakh MT duty-free Raw Sugar imports
The effect of Notification No. 31/2026-2027 is that the import policy for Raw Sugar has been amended to permit 10 lakh MT of duty-free imports under the Tariff Rate Quota mechanism up to 31 October 2026.
At the same time, eligible Advance Authorisation holders under SION E52 have been given a one-time opportunity to migrate the quantity of Raw Sugar already imported under their authorisations to the TRQ Scheme, subject to fulfilment of the stipulated conditions.
The measure provides a defined framework for duty-free import of Raw Sugar under the TRQ while also facilitating the transition of eligible imports made under the Advance Authorisation Scheme.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/Eng-Notif.pdf
