Amendment in Export Policy of Mercury and insertion of Policy Condition

## Report on Amendment to Export Policy of Mercury **1. Executive Summary:** This report analyzes an amendment to the export policy of Mercury, as notified by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, Government of India. The amendment, effective immediately, changes the export policy of Mercury from "Free" to "Restricted". The core purpose is to ensure compliance with the Minamata Convention on Mercury by requiring a Prior Informed Consent (PIC) procedure from the Ministry of Environment, Forest and Climate Change (MoEFCC) for mercury exports. The key finding is that all Mercury exports are now contingent upon obtaining PIC from MoEFCC. **2. Introduction:** This report aims to provide a comprehensive overview of the amendment to the export policy of Mercury, based solely on the notification issued by the Directorate General of Foreign Trade on September 23, 2021. This report aims to inform the affected industry about the key changes and their potential implications. **3. Policy Overview:** * **Amendment to:** Foreign Trade Policy 2015-2020, specifically regarding ITC HS Code 28054000 of Chapter 28 of Schedule 2 of ITC HS Export Policy. * **Core Objective(s):** To regulate the export of mercury in accordance with the provisions of the Minamata Convention, as inferred from the text. **4. Background and Rationale:** The amendment is likely driven by the need to align India's export policy with its commitments under the Minamata Convention on Mercury, a global treaty designed to protect human health and the environment from the adverse effects of mercury. The amendment seeks to ensure that mercury exports are conducted in a responsible and environmentally sound manner, complying with the convention's requirements. **5. Key Provisions / Changes:** This section focuses on the specific changes introduced by the amendment: * **Specific Part of Original Policy Being Changed:** The export policy for Mercury under ITC HS Code 28054000. * **New Rule/Provision:** The export policy is revised from "Free" to "Restricted." Export of mercury is now subject to obtaining Prior Informed Consent (PIC) from the National Focal Point of Minamata Convention in the Ministry of Environment, Forest and Climate Change (MoEFCC). * **Difference/Effect of the Change:** Previously, mercury could be exported freely. Now, any export of mercury requires prior approval from MoEFCC, based on the PIC procedure as outlined in the Minamata Convention. This introduces a new layer of regulatory oversight and potentially slows down or restricts mercury exports. **6. Target Audience and Stakeholders:** The primary target audience includes: * Businesses involved in the export of mercury. * The Ministry of Environment, Forest and Climate Change (MoEFCC). * Customs authorities responsible for enforcing export regulations. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) is responsible for issuing the notification and amending the export policy. The Ministry of Environment, Forest and Climate Change (MoEFCC) is responsible for administering the Prior Informed Consent (PIC) procedure. * **Timelines or Procedures:** The amendment is effective immediately. Exporters must access the MoEFCC website (http://moef.gov.in Divisions Environment Divisions Hazardous Substance Management Division ImportExport) to understand the details of the PIC procedure. * **Amendment specific implementation:** Companies involved in exporting mercury must now comply with the PIC procedure outlined by the MoEFCC prior to exporting, unlike before when it was "Free." **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this amendment is to: * Ensure that mercury exports are conducted in a manner consistent with the Minamata Convention, contributing to the reduction of mercury pollution globally. * Enhance transparency and accountability in mercury export processes. * Potentially reduce the overall volume of mercury exports due to the added regulatory burden. **9. Conclusion:** The amendment to the export policy of mercury represents a significant step towards aligning India's trade practices with international environmental agreements. By requiring Prior Informed Consent from MoEFCC, the amendment aims to regulate mercury exports effectively and minimize potential environmental and health risks. The change from "Free" to "Restricted" status for mercury exports will have a direct impact on businesses involved in this sector, requiring them to adapt to the new regulatory requirements and comply with the PIC procedure. This policy update demonstrates a commitment to responsible trade practices and environmental stewardship.

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