India–Sri Lanka FTA TRQ (Import Quota): Notifications, Quota Limits & How to Use the Benefit

February 13, 2026

Under the India–Sri Lanka Free Trade Agreement (ISFTA), certain Sri Lanka–origin goods can be imported into India under a Tariff Rate Quota (TRQ) at concessional or Nil Customs duty. Once the notified annual quota is exhausted, imports attract normal tariff rates.

India–Sri Lanka TRQ Items & Annual Quota 

The India–Sri Lanka TRQ framework covers a limited basket of commodities, each subject to strict annual quantity caps. Commonly used TRQ items include:

• Vanaspati / Bakery Shortening / Margarine – 2,50,000 MT
• Black Pepper – 2,500 MT
• Garments (Apparel & Clothing Accessories) – 8 million pieces
• Tea & Tea Preparations – 15 million kg
• Desiccated Coconut - 500 MT

Additionally, DGFT minutes explicitly include Desiccated Coconut – 500 MT under the India–Sri Lanka TRQ basket.

Important note: While your Excel file listed four TRQ categories, CBIC Customs Notification also recognizes Desiccated Coconut as an eligible TRQ item for Sri Lanka-origin imports.

Master TRQ Table: Product, Quantity, Notification & Conditions

✅DGFT allocation minutes confirm these same quantities, including desiccated coconut, ensuring alignment between policy intent and operational execution.

Legal Notifications Enabling the TRQ 

A. CBIC Notification No. 2/2007-Customs (05.01.2007)

This notification provides TRQ-linked Customs duty concessions for Sri Lanka-origin imports, including:

• Black Pepper (0904) – 2,500 MT
• Vanaspati / Shortening / Margarine (1516–1518) – 2,50,000 MT
• Desiccated Coconut (0801 11 00) – 500 MT

The concessional rate applies only within the notified TRQ quantity.

B. Customs Notification No. 26/2000-Customs (01.03.2000)

This is the foundational ISFTA notification, governing:

• Garments (List 3) – 8 million pieces
• Tea & Preparations (List 4) – 15 million kg

It also prescribes specific port and routing conditions, making compliance critical.

DGFT’s Role: How TRQ Is Actually Claimed

While Customs notifications create the duty benefit, TRQ is operationally implemented through DGFT.

DGFT’s TRQ mechanism:

• Allocates quantities within the annual cap
• Issues electronic TRQ authorisations
• Links each authorisation to the relevant Customs notification

What a DGFT TRQ Authorisation Typically Contains

As per DGFT Appendix 2A, the authorisation includes:

• Importer name & IEC
• Tariff item / HS code
• Linked Customs notification
• Approved quantity
• Validity period

This authorisation is mandatory for claiming TRQ benefits at the time of Customs clearance.

Recent Process Update You Can Cite

DGFT has updated Appendix 2A (as on 30.10.2025), reinforcing:

• Standardised TRQ application workflows
• Uniform authorisation formats
• Clear data requirements for Customs linkage

????Practical takeaway: Even when TRQ product lists remain unchanged, procedural compliance keeps evolving, and importers must stay aligned with DGFT system updates.

Importer Compliance Checklist 

Before planning a TRQ import from Sri Lanka, ensure:

1. HS code matches exact notification entries and exclusions
2. ISFTA Certificate of Origin is valid and complete
3. DGFT TRQ authorisation is obtained and valid
4. Any port / routing conditions mentioned in the notification are followed
5. Import planning is done early, as TRQ allocations are annual and time-bound

 Conclusion

The India–Sri Lanka TRQ mechanism is a powerful duty-saving tool, but only when Customs notifications, origin compliance, and DGFT authorisation align perfectly. For importers of pepper, vanaspati, garments, tea, or desiccated coconut, TRQ should be treated as a documentation-driven and time-sensitive strategy, not a last-minute clearance option.

If you need assistance, we can help you map:
HS Code → Applicable Notification → DGFT TRQ Process → End-to-End Documentation Checklist
— ensuring your TRQ benefit is claimed correctly and without disputes.

Disclaimer: 

This blog is for informational purposes only and is based on CBIC Customs Notifications and DGFT guidelines available at the time of writing. TRQ procedures, eligibility, and DGFT processes are subject to change, and readers are advised to verify the latest DGFT Notifications, Public Notices, and Customs updates before acting. This content does not constitute legal or professional advice.