Home India Ministry of Commerce and Industry Amendment in Export Policy of Agar Oil and Agarwood Chips an...
Date: 2021-11-29 Category: Extra Ordinary State: Union Government Country: India

Amendment in Export Policy of Agar Oil and Agarwood Chips and Powder obtained from artificially propagated source and insertion of policy conditions regarding

Issued by Ministry of Commerce and Industry · Directorate General of Foreign Trade

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Okay, I will analyze the provided text and generate a policy report following the specified structure and focusing on the amendment aspects. **Report on Amendment to Export Policy of Agar Oil and Agarwood Chips and Powder** **1. Executive Summary:** This report analyzes an amendment to the export policy of Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder, as notified by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, on November 29, 2021. The amendment shifts the export policy from "Free" to "Restricted" and establishes annual export quotas: 25000 Kg for Agarwood Chips and Powder and 1500 Kg for Agar Oil. Furthermore, it details specific conditions that must be met to obtain export licenses for these products, emphasizing the need for certificates of origin, stock verification, and adherence to CITES guidelines. The amendment aims to regulate and control the export of these products, likely to ensure sustainable sourcing and compliance with international agreements. **2. Introduction:** This report provides an overview of the amendment to the export policy concerning Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder. It is based solely on the official notification issued by the Directorate General of Foreign Trade on November 29, 2021, and aims to inform stakeholders about the changes and their implications. **3. Policy Overview:** * This notification amends the existing Foreign Trade Policy 2015-2020, specifically modifying Chapter 12 and Chapter 33 of Schedule 2 of ITC HS Export Policy, 2018 related to Agarwood. * **Core Objectives (inferred):** Regulate the export of Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder, ensure the products originate from cultivated sources outside forest areas, and comply with CITES regulations. **4. Background and Rationale:** The amendment suggests a need for greater control over the export of Agar Oil and Agarwood Aquilaria Malaccensis. The original policy, which allowed free export, may have been insufficient to address concerns related to sustainable sourcing, potential over-exploitation of natural resources, and compliance with international trade regulations (CITES). The amendment introduces restrictions and conditions, likely to address these gaps and promote responsible trade practices. **5. Key Provisions / Changes:** This amendment specifically introduces the following changes: * **Policy Shift:** The export policy for Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder is changed from "Free" to "Restricted." This means that exports now require licenses and are subject to quotas and conditions. * **Export Quotas:** The amendment establishes the following annual export quotas: * Agarwood Aquilaria Malaccensis Chips and Powder: 25000 Kg * Agar Oil: 1500 Kg * **New Export Conditions:** The amendment outlines specific conditions that must be met to obtain export licenses for Agarwood Aquilaria Malaccensis Chips and Powder and Agar Oil. These conditions include: * **Certificate of Origin:** Submission of attested copies of a certificate of origin issued by an authorized officer of the Forest Department of the State from where the stocks were procured. The certificate must confirm that the agarwood was obtained from a plantation registered with the State Government. * **Stock Verification:** Submission of a certificate verifying the current position of stocks procured and available with the applicant, issued after physical verification by an authority nominated by the Principal Chief Conservator of Forests (PCCF). * **Export Order Copy:** Submission of a copy of the export order received by the concerned firm. * **Product Photograph:** Submission of a colored photograph of the products, duly certified by the concerned officer designated by the Forest Department. * **CITES Undertaking:** An undertaking from the firm that the agarwood has been harvested from a plantation following all conditions of CITES for harvesting of agarwood Aquilaria Malaccensis. **Effect of Change:** This amendment will require exporters of Agar Oil and Agarwood Chips and Powder to apply for export licenses, adhere to the specified quotas, and provide documentation proving legal and sustainable sourcing. This will likely increase the administrative burden and compliance costs for exporters, but could also lead to a more sustainable and regulated market. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders are: * Firms involved in the export of Agar Oil. * Firms involved in the export of Agarwood Aquilaria Malaccensis Chips and Powder. * State Forest Departments, particularly the officers responsible for issuing certificates of origin and verifying stocks. * The Principal Chief Conservator of Forests (PCCF) and their nominated authorities responsible for stock verification. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for implementing and enforcing the amended export policy. State Forest Departments and the PCCF are responsible for verifying the origin and legality of the agarwood and issuing the required certificates. * **Procedures:** Exporters must apply for export licenses from the DGFT and provide the required documentation (certificate of origin, stock verification certificate, export order, product photograph, CITES undertaking). The DGFT will likely assess the applications based on quota availability and compliance with the specified conditions. * **No specific timelines:** are mentioned in the provided text. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * **Controlled Exports:** Limiting the total quantity of Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder exported annually through quotas. * **Sustainable Sourcing:** Ensuring that exports are derived from cultivated sources outside forest areas and not from illegally harvested wild populations. * **CITES Compliance:** Promoting compliance with the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). * **Increased Transparency:** Improving transparency and traceability in the agarwood supply chain through documentation and verification requirements. The impact of the amendment may include: * Increased compliance costs for exporters. * Potential for reduced export volumes (at least initially, as companies adjust). * Greater scrutiny of agarwood sourcing practices. * Positive impact on the conservation of wild agarwood populations, if effectively enforced. **9. Conclusion:** The amendment to the export policy of Agar Oil and Agarwood Aquilaria Malaccensis Chips and Powder represents a significant shift towards greater regulation and control. By imposing quotas, requiring detailed documentation, and emphasizing sustainable sourcing, the government aims to ensure the responsible trade of these valuable products and compliance with international conservation agreements. This change will significantly affect exporters, requiring them to adapt their practices to meet the new requirements.

Key Entities Referenced

Foreign Trade Development Regulation Act, 1992: An act of the Indian Parliament that empowers the Central Government to regulate foreign trade. Foreign Trade Policy, 2015-2020: A policy document outlining the guidelines and objectives for India's foreign trade during the period of 2015 to 2020. Central Government: The executive authority of the Republic of India. ITC HS Export Policy, 2018: Indian Trade Classification (Harmonized System) for Export Policy, 2018. Agarwood Aquilaria Malaccensis: A species of Agarwood, a resinous heartwood used for incense and perfumes, whose export policy is being amended. Agar Oil: Oil extracted from Agarwood Aquilaria Malaccensis, whose export policy is being amended. CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora. Amit Yadav: Director General of Foreign Trade and Ex-Officio Additional Secretary. Directorate General of Foreign Trade: A department under the Ministry of Commerce and Industry responsible for implementing foreign trade policy. Ministry of Commerce and Industry: A ministry of the Government of India responsible for formulating and implementing policies related to commerce and industry. New Delhi: Capital of India
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 xxxGIDHxxx सी.जी.-डी.एxलxx.G-अID.E-x2x9x1 12021-231465 CG-DL-E-29112021-231465 असाधारण EXTRAORDINARY भाग II—खण्ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 4529] नई दिल्ली, सोमवार, नवम्बर 29, 2021/अग्रहायण 8, 1943 No. 4529] NEW DELHI, MONDAY, NOVEMBER 29, 2021/AGRAHAYANA 8, 1943 ubZ fnYyh] 29 uoEcj] 2021 .—fons'k O;kikj uhfr] 2015&2020 ds iSjk 1-02 vkSj 2-01 ds lkFk ifBr ;Fkk la'kksf/kr fon's k O;kikj ¼fodkl ,oa fofu;eu½ vf/kfu;e] 1992 ¼o"kZ 1992 dh la- 22 ½dh /kkjk 5 ds lkFk ifBr /kkjk 3 }kjk iznr 'kfDr;ksa dk iz;ksx djrs gq, dsUnz ljdkj ,rn~}kjk vxjoqM ls lacfa/kr vkbZVhlh ¼,p,l½ fu;kZr uhfr 2018 dh vuqlwph&2 ds v/;k; 12 vkSj v/;k; 33 esa fuEufyf[kr la'kks/ku djrh gS% vxjoqM —f=e :i ls mRiUu lzksr ¼ou {ks=ks a ds ¼,Dohysfj;k ckgj d`f"kr mn~xe {ks=½ ls çkIr vxjoqM eSykdsafll½ ¼,fDoysfj;k eSykdsafll½ fpIl vkSj ikmMj 86 , 12119080 eqDr izfrcaf/kr ¼fpIl vkSj ds fu;kZr ds fy, okf"kZd dksVk fuEukuqlkj ikWoMj fu/kkZfjr fd;k x;k gS% lfgr½ 6900 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] vxjoqM ¼,fDoyfsj;k eSykdsfall½ ikmMj vkSj fpIl ds fu;kZr dh vuqefr fuEufyf[kr 'krksZa ds v/khu nh tkrh gS% I. —f=e :i ls mRiUu lzksrksa ¼ou {ks=ks a ds ckgj d`f"kr mn~xe½ ls çkIr vxjoqM ¼,fDoysfj;k eSykdsfall½ ds fu;kZr ds fy, fu;kZr ykblsla ds vkosnuks a ds lkFk oS/kkfud lzksrks a ls [kjhn dh rkjh[k vkSj [kjhnh xbZ ek=k dk fooj.k nrs s gq, lacaf/kr jkT; ljdkj tgka ls LV‚d dh [kjhn ;k fu;kZr fd;k x;k Fkk }kjk vf/kd``r ou foHkkx ds vf/kdkjh }kjk tkjh mn~xe izek.ki= dh vfHkizekf.kr çfr;ka gksuh pkfg,A mn~xe çek.ki= eas ;g mYy[s k gksuk pkfg, fd ftl ckxku ls vxjoqM ¼,fDoysfj;k eSykdsafll½ çkIr fd;k x;k Fkk og jkT; ljdkj ds ikl iath—r gSA II. LV‚d ds okLrfod lR;kiu ds ckn vkosnd ds ikl [kjhn s x, vkSj miyC/k LV‚d dh orZeku fLFkfr dk ihlhlh,Q }kjk bl mís'; ds fy, ukfer fd, x, çkf/kdkjh }kjk iznku fd, x, çek.k i= Hkh fu;kZr ykblsla ds fy, vkosnu ds lkFk layXu gksuk pkfg,A III. lacaf/kr QeZ }kjk izkIr fu;kZr vkns'k dh ,d izfrA IV. ou foHkkx }kjk ukfer lacaf/kr vf/kdkjh }kjk fof/kor çekf.kr mRiknks a [vxjoqM ¼,fDoysfj;k eSykdsfall½] dh jaxhu rLohjA V. QeZ dh vksj ls ,d opuc)rk fd vxjoqM ¼,fDoyfsj;k eSykdsfall½ ds fu;kZr ds fy, çLrkfor oLrqvks a dks lhvkbZVhbZ,l dh vxjoqM ¼,fDoysfj;k eSykdsafll½ dh dVkbZ ls lacaf/kr lHkh 'krksZa dk ikyu djr s gq, ckxku ls dkVk x;k gSA —f=e :i ls mRiUu lzksr ls çkIr vxj vkW;y ds fu;kZr ds fy, okf"kZd dksVk fuEukuqlkj fu/kkZfjr fd;k x;k gS% vxj vkW;y ds fu;kZr dh vuqefr fuEufyf[kr 'krksZa ds v/khu nh tkrh gS% vxj 170 , 33013010 eqDr izfrcaf/kr I. —f=e :i ls mRiUu lzksrks a ¼ou {ks=ks a ds vkW;y ckgj d`f"kr mn~xe½ ls çkIr vxjoqM ¼,fDoysfj;k eSykdsfall½ ls fudky s x, vxj vkW;y ds fu;kZr ds fy, fu;kZr ykblsla ds vkosnu ds lkFk oS/kkfud lzksrks a ls [kjhn dh rkjh[k vkSj [kjhnh xbZ ek=k dk fooj.k nrs s gq, lacaf/kr jkT; ljdkj tgka ls LV‚d dh [kjhn ;k fu;kZr fd;k x;k Fkk }kjk vf/kd``r[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3 ou foHkkx ds vf/kdkjh }kjk tkjh mn~xe izek.ki= dh vfHkizekf.kr çfr;ka gksuh pkfg,A mn~xe çek.ki= eas ;g mYys[k gksuk pkfg, fd ftl ckxku ls vxjoqM ¼,fDoyfsj;k eSykdsafll½ çkIr fd;k x;k Fkk og jkT; ljdkj ds ikl iath—r gSA II. LV‚d ds okLrfod lR;kiu ds ckn vkosnd ds ikl [kjhns x, vkSj miyC/k LV‚d dh orZeku fLFkfr dk ihlhlh,Q }kjk bl mís'; ds fy, ukfer fd, x, çkf/kdkjh }kjk iznku fd, x, çek.k i= Hkh fu;kZr ykblsla ds fy, vkosnu ds lkFk layXu gksuk pkfg,A III. lacaf/kr QeZ }kjk izkIr fu;kZr vkns'k dh ,d izfrA IV. ou foHkkx }kjk ukfer lacaf/kr vf/kdkjh }kjk fof/kor çekf.kr mRiknks a [vxjoqM ¼,fDoysfj;k eSykdsfall½] dh jaxhu rLohjA V. QeZ dh vksj ls ,d opuc)rk fd vxj vkW;y ds fu;kZr ds fy, çLrkfor oLrqvks a dks lhvkbZVhbZ,l dh vxjoqM ¼,fDoysfj;k eSykdsafll½ dh dVkbZ ls lacaf/kr lHkh 'krksZa dk ikyu djrs gq, ckxku ls dkVk x;k gSA 2- bl vf/klwpuk dk izHkko%  vxj vkW;y vkSj vxjoqM ¼,fDoysfj;k eSykdsfall½ fpIl vkSj ikmMj dh fu;kZr uhfr dks rRdky çHkko ls eqä ls la'kksf/kr dj çfrcaf/kr fd;k x;k gSA  vxjoqM ¼,fDoysfj;k eSykdsafll½ fpIl vkSj ikmMj ds fy, 25000 fdyksxzke çfr o"kZ dk fu;kZr dksVk vkSj vxj vk;y ds fy, 1500 fdyksxzke çfr o"kZ dk fu;kZr dksVk vf/klwfpr fd;k x;k gSA  vxjoqM ¼,fDoysfj;k eSykdsfall½ fpIl vkSj ikmMj vkSj vxj vkW;y ds fu;kZr ls lacaf/kr uhfrxr 'krZ Hkh vf/klwfpr dh xbZ gSA [Qk- la- 01@91@180@60@,,e&21@bZlh@bZ&26475] vfer ;kno] egkfuns'kd fon's k O;kikj vkSj insu vij lfpo MINISTRY OF COMMERCE AND INDUSTRY (Department of Commerce) (DIRECTORATE GENERAL OF FOREIGN TRADE) NOTIFICATION New Delhi, the 29th November, 2021 No. 45/2015-2020 Subject : Amendment in Export Policy of Agar Oil and Agarwood Chips and Powder obtained from artificially propagated source and insertion of policy conditions–regarding S.O. 4898(E).—In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby makes following amendment in the Chapter 12 and Chapter 33 of Schedule – 2 of ITC (HS) Export Policy, 2018 related to Agarwood:4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] Chapter – 12 S. ITC HS Existing Revised Policy Condition Description No Codes Policy Policy The annual quota for export of Agarwood (Aquilaria Malaccensis) Chips and Powder obtained from artificially propagated source (cultivated origin outside forest areas) has been fixed as under: Agarwood Chips and Powder – 25000 Kg per annum. The export of Agarwood (Aquilaria Malaccensis) powder and Chips is permitted subject to following conditions: I. Applications for an export license for the export of agarwood (Aquilaria Malaccensis) obtained from artificially propagated sources (cultivated origin outside forest areas) should be accompanied by attested AGARWOOD copies of certificate of origin issued by an Officer of the (Aquilaria Forest Department, authorized Malaccensis) by concerned State 86A 12119080 Free Restricted (INCLUDING Government from where CHIPS AND stocks were procured/ Powder) exported, giving details of the date of procurement from legal sources and quantities procured. The certificate of origin should mention that the plantation from which agarwood (Aquilaria Malaccensis) was obtained is registered with the State Government. II. A certificate of the current position of stocks so procured and available with the applicant given after physical verification of the stocks, by the authority nominated for the purpose by the PCCF, should also accompany the application for an export license. III. A copy of the export order received by the concerned firm.[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 5 IV. Coloured photograph of products duly certified by the concerned officer designated by the Forest Department. V. An undertaking from the firm that items of agarwood (Aquilaria Malaccensis) proposed to be exported has been harvested from plantation following all conditions of CITES for harvesting of agarwood (AquilariaMalaccen sis). Chapter – 33 S. ITC HS Existing Revised Policy Condition Description No Codes Policy Policy The annual quota for export of Agar Oil obtained from artificially propagated source has been fixed as under: Agar Oil – 1500 Kg per annum. The export of Agar Oil is permitted subject to following conditions: I. Applications for an export license for the export of agaroil extracted from agarwood (Aquilaria Malaccensis) obtained from artificially propagated sources (cultivated origin outside forest areas) should be accompanied by attested copies of certificate of origin issued by an Officer of the Forest Department, authorized by concerned State Government from 170A 33013010 Agar Oil Free Restricted where stocks were procured/exported, giving details of the date of procurement from legal sources and quantities procured. The certificate of origin should mention that the plantation from which agarwood (Aquilaria Malaccensis) was obtained is registered with the State Government. II. A certificate of the current position of stocks so procured and available with the applicant given after physical verification of the stocks, by the authority nominated for the purpose by the PCCF, should also accompany the application for an export license6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] III. A copy of the export order received by the concerned firm. IV. Coloured photograph of products (agarwood) (Aquilaria Malaccensis) duly certified by the concerned officer designated by the Forest Department. V. An undertaking from the firm that items of agaroil proposed to be exported has been harvested from plantation following all conditions of CITES for harvesting of agarwood (Aquilaria Malaccensis). 2. Effect of this Notification:  Export policy of Agar Oil and Agarwood (Aquilaria Malaccensis) Chips and Powder has been amended from Free to Restricted with immediate effect.  Export Quota of 25000 Kg per annum for Agarwood (Aquilaria Malaccensis) Chips and Powder and Export Quota of 1500 Kg per annum for Agar Oil has been notified.  The policy condition regarding export of Agarwood (Aquilaria Malaccensis) Chips and Powder and Agar Oil has also been notified. [F. No. 01/91/180/60/AM21/EC /E-26475] AMIT YADAV, Director General of Foreign Trade & Ex-Officio Addl. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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