The Ministry of Commerce and Industry on September 3rd 2024 issued a notification regarding the Allocation of 8606 Metric Tonnes Raw Value (MTRV) of raw cane sugar to USA and TRQ scheme for US Fiscal Year 2025.This allocation is significant for exporters and stakeholders in the sugar industry.
Understanding the Tariff Rate Quota (TRQ) Scheme
The TRQ scheme allows countries to export certain quantities of goods at lower tariffs. For exports beyond this quota, higher tariffs are applied. In this case, the TRQ scheme provides Indian exporters with the opportunity to export 8606 MTRV of raw cane sugar to the USA at a preferential rate, which could potentially make Indian sugar more competitive in the US market.
Key Details of the Public Notice
- Allocation Details:
- Quantity: 8606 MTRV of raw cane sugar.
- Period: The allocated quota is valid from October 1, 2024, to September 30, 2025.
- Certification Requirements:
- Certificate of Origin: For preferential export to the USA, exporters must obtain a Certificate of Origin. This certificate will be issued by the Additional Director General of Foreign Trade, Mumbai, based on the recommendation of the Agriculture and Processed Food Products Export Development Authority (APEDA).
- Other Certifications: Any additional certification requirements specific to the export of sugar to the USA must be followed as prescribed.
- Implementation and Management:
- Implementing Agency: The quota will be administered by APEDA, New Delhi. APEDA will oversee the implementation of the TRQ scheme and ensure that exports comply with the regulations.
What This Means for Exporters
For exporters of raw cane sugar, this notice is an opportunity to increase their market presence in the USA. The allocation of 8606 MTRV under the TRQ scheme can lead to better pricing and competitive advantages in the US market. However, compliance with the specified conditions and certification requirements is crucial to benefit from this quota.
Conclusion
The recent allocation of 8606 MTRV of raw cane sugar to the USA under the TRQ scheme for fiscal year 2025 represents a significant opportunity for Indian exporters. By adhering to the regulatory requirements and working closely with APEDA and other relevant authorities, exporters can leverage this quota to enhance their business prospects in the US market.
