12 March 2025
Purpose
This Industry Advice Notice (IAN) replaces IAN 2025-07 (released 7 March 2025) following the Indian Government’s announcement on 8 March 2025 and provides information to exporters of lentils to India on the current tariff arrangements and how to apply for a tariff rate quota (TRQ) certificate to receive reduced tariff rates under AI-ECTA.
Summary of changes and key points
- On 8 March 2025 and following announcement by the Indian Government, the tariff free exemption for the export of lentils to India ceased.
- As of 8 March 2025 and as per India’s revised tariff rates, the most favoured nation (MFN) tariff rate for lentils imported to India is 10%. Under AI-ECTA, India’s tariff rate on lentils within the tariff rate quota is 50% of the applied MFN rate. Therefore, applicable lentil shipments entering under AI-ECTA have a 5% tariff.
- To apply for a TRQ certificate exporters must lodge a Request for Permit (RFP) in the department’s electronic 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.
- 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 (at least 2 weeks) for DGFT processes to be completed. Product cannot receive TRQ reduction until these processes have been completed. Further information on DGFT is available here: https://www.dgft.gov.in/CP/?opt=import-management-system)
- The department is aware of consignments that were sent prior to India’s announcement and is working to confirm tariff arrangements.
Background
The AI-ECTA entered into force in December 2022 giving Australia a TRQ for a reduced tariff rate on 150,000 tonnes of lentils per year of 50% of the applied MFN rate on any given day.
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 for that quarter and exports will be subject to India’s prevailing tariff rate.
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.
Contact information
If you have any questions regarding this IAN please email Quota Administration Unit.
Matthew Campbell
Acting Assistant Secretary
Meat Exports Branch