📑 Tariff Rate Quotas (TRQ) — Import Licensing Support
Expert Advisory & TRQ License Assistance by DGFT EXIM
In international trade, governments often use tariff mechanisms to regulate imports while protecting domestic industries. One of the structured tools for this purpose is the Tariff Rate Quota (TRQ) system. At DGFT EXIM, we provide comprehensive consultancy services to help importers secure and manage their TRQ licenses, ensuring smooth operations and optimized import costs.
📌 What is a Tariff Rate Quota (TRQ)?
A Tariff Rate Quota (TRQ) is a trade policy instrument that allows a fixed quantity of specific goods to be imported at a reduced or zero duty, while quantities exceeding this limit attract a higher tariff. This dual-rate system is designed to balance domestic market protection with import liberalization obligations under international trade agreements.
📖 How Does TRQ Work?
A typical TRQ arrangement involves:
Quota Quantity
A quota quantity — the permitted volume of imports at the lower duty rate
Within-Quota Tariff
A within-quota tariff rate — a concessional or nil customs duty on imports up to the quota limit
Out-of-Quota Tariff
An out-of-quota tariff rate — a higher duty applicable on imports exceeding the quota
Quotas may be country-specific or global and are allocated through mechanisms like applications, auctions, or based on past import/export performance.
📌 E-Tariff Rate Quota (E-TRQ) System
To improve ease of doing business, India operates an electronic TRQ (E-TRQ) system under the DGFT portal. Importers can:
Apply Online
Apply online for TRQ licenses
Track Status
Track application status
Download Authorizations
Download granted authorizations digitally
This digital process ensures transparency, faster allocation, and reduced paperwork.
📄 TRQ License Requirements
To avail concessional duty under TRQ:
- An Importer Exporter Code (IEC) is mandatory
- Application must be filed on the DGFT portal within notified timelines
- Supporting documents like past import data, product specifications, and trade agreements may be required depending on the product and scheme
Some TRQs are linked to specific Free Trade Agreements (FTAs) like India-UAE CEPA, India-ASEAN FTA, and India-Mauritius CECPA.
📌 How DGFT EXIM Can Help
At DGFT EXIM, we offer:
- ✔️ Product classification advisory and eligibility check for TRQ benefits
- ✔️ Application preparation and online submission via the DGFT E-TRQ system
- ✔️ Drafting of supporting documents, justifications, and annexures
- ✔️ Regular follow-ups with authorities for quicker license issuance
- ✔️ Post-license advisory on utilization, compliance, and customs clearance
📞 Why Choose DGFT EXIM?
- ✅ Dedicated team with in-depth knowledge of TRQ processes and FTP provisions
- ✅ End-to-end licensing support, from eligibility assessment to obtaining authorizations
- ✅ Time-bound, transparent, and reliable service
- ✅ Strategic advisory to optimize duty savings and import planning
📑 Conclusion
Tariff Rate Quotas (TRQs) play a crucial role in balancing trade facilitation with domestic industry protection. Timely application and proper management of TRQ licenses enable importers to lower import costs, access preferential duties, and remain competitive in international trade.
📞 Contact DGFT EXIM's licensing specialists today for TRQ application assistance and expert trade policy guidance.