The Ministry of Finance, Department of Revenue, has announced a significant customs duty exemption for raw sugar imports into India. Under Notification No. 30/2026-Customs, dated August 21, 2026, the Central Government has permitted duty-free imports of up to 10 lakh metric tonnes (MT) of raw sugar under the Tariff Rate Quota (TRQ) mechanism.
The notification has been issued under Section 25(1) of the Customs Act, 1962, which empowers the Central Government to grant exemptions from customs duty in the public interest.
Duty-Free Raw Sugar Imports Allowed Up to 10 Lakh MT
As per the notification, raw sugar falling under tariff heading 1701 will be eligible for a complete exemption from the customs duty leviable under the First Schedule to the Customs Tariff Act, 1975.
The exemption will be available for a total TRQ quantity of:
10,00,000 MT of raw sugar
The measure is aimed at facilitating imports of raw sugar through a specified quota while ensuring that imports remain subject to an electronically monitored authorization process.
DGFT to Allocate the Tariff Rate Quota
The duty-free import facility will not be automatically available to all importers. The Directorate General of Foreign Trade (DGFT) will allot the TRQ to eligible importers in accordance with the relevant procedures prescribed under the Hand Book of Procedures, 2023.
The TRQ authorization issued to an importer must contain key details, including:
- Name and address of the importer
- Importer-Exporter Code (IEC)
- Customs notification number
- Applicable tariff heading
- Approved quantity
- Validity period of the authorization
The authorization will be issued electronically by the DGFT and transmitted directly to the Indian Customs EDI System (ICES).
Electronic Monitoring of Duty-Free Imports
The notification also specifies that imports made against the TRQ will be permitted only after the authorized quantity is electronically debited in the ICES system.
This electronic mechanism is intended to ensure that imports remain within the approved TRQ limit and that the duty exemption is utilized only against valid authorizations.
Exemption Effective Immediately
The customs duty exemption has come into force with immediate effect from August 21, 2026.
However, the exemption is time-bound and will remain effective only up to and including October 31, 2026.
Therefore, importers seeking to benefit from the duty-free raw sugar quota will need to ensure that their TRQ authorization and imports comply with the prescribed conditions within the specified validity period.
Key Highlights of Notification No. 30/2026-Customs
| Particulars | Details |
|---|---|
| Notification No. | 30/2026-Customs |
| Date | August 21, 2026 |
| Goods | Raw Sugar |
| Tariff Heading | 1701 |
| TRQ Quantity | 10,00,000 MT |
| Customs Duty | Fully exempt under the notification |
| TRQ Allocation Authority | DGFT |
| Authorization Mode | Electronic |
| Customs System | Indian Customs EDI System (ICES) |
| Effective From | August 21, 2026 |
| Valid Until | October 31, 2026 |
What the Notification Means for Importers
The latest customs notification provides importers with an opportunity to bring in raw sugar without the applicable customs duty, subject to the availability of the 10 lakh MT TRQ and compliance with DGFT procedures.
Importers will need to obtain the appropriate TRQ authorization from the DGFT and ensure that the authorization details are correctly transmitted and debited through the ICES system before claiming the exemption.
The notification therefore creates a time-bound duty-free import window for raw sugar, with DGFT allocation and electronic customs monitoring forming the key compliance requirements.
The notification has been issued by the Ministry of Finance, Department of Revenue, under File No. CBIC-190354/105/2026-TRU.
Official copy of the notification is as follows
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