Date: 2021-11-29Category: Extra OrdinaryState: Union GovernmentCountry: India
Amendment in Export Policy of Agar Oil and Agarwood Chips and Powder obtained from artificially propagated source and insertion of policy conditions regarding
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**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
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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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
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No. 4529] NEW DELHI, MONDAY, NOVEMBER 29, 2021/AGRAHAYANA 8, 1943
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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.