7/03/2025
Purpose
This Industry Advice Notice (IAN) provides information to exporters of lentils to India on applying for a tariff rate quota (TRQ) certificate to receive reduced tariff rates under AI-ECTA.
Summary of changes and key points
- On 31 March 2025, the tariff free exemption for the export of lentils to India since AI-ECTA came into force will cease.
- To apply for a TRQ certificate exporters must lodge a Request for Permit (RFP) in the department's Export Documentation System (EXDOC) and complete and submit the Tariff rate quota certificate application (the application).
- Under the Export Control (Fees and Payments) Rules 2021 there is a per certificate fee for TRQ certificates which is currently $87 per certificate.
- The application must include all required information and must not be made more than 3 weeks before the intended departure date. The department can only issue a TRQ certificate if, at the time the application is dealt with, the quarterly access amount is greater than zero.
- It is the decision for exporters whether to apply for a TRQ certificate under the AI-ECTA whilst the exemption is in place.
- Importers in India will be required to apply to the Directorate General of Foreign Trade (DGFT) for a No Objection Certificate (NOC) including a reference to the TRQ certificate. Exporters should work with their Importers to ensure they are aware of the Indian processes and that there is sufficient time for DGFT processes to be completed. Product cannot receive TRQ reduction until these processes have been completed.
Background
The AI-ECTA entered into force in December 2022 giving Australia a TRQ for reduced tariff rate on 150,000 tonnes of lentils.
The AI-ECTA lentils TRQ offers a 50% reduction on the most favoured nation rate for 150,000 tonnes of lentils. This will mean an in-quota tariff rate of 15% and an out of quota tariff rate of 30%.
In accordance with the Export Control (Tariff Rate Quotas – General) Rules 2021 there is 37,500 tonnes of TRQ available for each of the periods Jan-Mar, Apr-Jun, Jul-Sep and Oct-Dec each year. Once 37,500 tonnes of product have received TRQ certificates no further TRQ certificates will be issued.
The Notes for schedule of India and the Schedule of Tariff Commitments of India is available at Australia-India ECTA Annex 2A (Tariff Commitments) Section 2A (Tariff Schedule of India) | Australian Government Department of Foreign Affairs and Trade.
Further details regarding the TRQ administration can be found on the India Lentil quotas webpage.