World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Colombia 17:

According to paragraph 18, page 129, of the Secretariat Report: "Subsequent to Article XXVIII renegotiations in 2003, India introduced in its Schedule tariff rate quotas for four product groups (19 tariff lines at the HS eight digit level according to the authorities): milk and milk powder; maize (corn); rape, colza, and mustard oil; and crude sunflower seed and safflower oil. As of 2008/09, tariff quotas for crude sunflower seed oil or safflower oil have ceased to operate as the applied tariff on those products was reduced to 0 per cent (Table III.6). In 2009, India introduced a tariff quota for sugar (HS 1701.9100 or 1701.99.90) of 1 million tonnes with an in quota tariff rate of 0 per cent. Initially, sugar could only be imported through four companies but, according to the authorities, this restriction has been removed. In 2010, India increased the amount of milk that could be imported under the in quota tariff rate from the original 10,000 tonnes to 30,000 tonnes, and introduced a tariff rate quota for butter (Table III.6). Imports under TRQs are allowed only through eligible entities or designated agencies. These entities and agencies need to apply to the DGFT prior or by 1 March of each financial year proceeding the quota year. The Exim Facilitation Committee in DGFT receives, evaluates and allots the TRQ. Imports have to be completed before 31 March of the financial year for which the quota is allocated."

17. Would India please provide details concerning the provisions and methodology established for the allocation of import quotas to these entities/agencies?

Reply: Quotas are established annually and administered on an MFN basis. There is no maximum limit to be allocated per applicant. Directorate General of Foreign Trade is the competent authority to allocate the tariff quota among the eligible entities. Applications are examined upon receipt and assessed according to the criteria stated in the notifications and circulars issued by DGFT on a yearly basis. Import quotas under TRQ have been allowed primarily to the state trading enterprises to ensure monitoring and to avoid any discrimination. Details of the TRQ has been notified to WTO and can be seen at WTO document G/AG/N/IND/6 dated 7th March, 2011. Detailed procedure for allocation notified by DGFT from time to time is available in the website: http://dgft.gov.in.