Date: 2022-12-27Category: Extra OrdinaryState: Union GovernmentCountry: India
Amendment in Export Policy of Red Sanders wood exclusively sourced from cultivation origin obtained from private land including Pattaland and Confiscated source regarding
**Report on Amendment to Export Policy of Red Sanders Wood**
**1. Executive Summary:**
This report analyzes an amendment to the export policy of Red Sanders (Pterocarpus santulinus) wood, specifically focusing on material sourced from cultivation origin, including private land (Pattaland) and confiscated sources. The amendment, detailed in Notification No. 50 (2015-2020) dated December 27, 2022, modifies the export conditions outlined in Chapter 44 of the ITC HS, 2018, Schedule 2 Export Policy. The core purpose of this amendment is to revise and clarify the regulations governing the export of Red Sanders wood, including specifying export quotas and implementing enhanced monitoring and verification procedures. Key findings include the establishment of an annual export quota for artificially propagated Red Sanders from Andhra Pradesh, the introduction of a digital platform for tracking Red Sanders, and stringent documentation requirements for export licenses.
**2. Introduction:**
This report aims to provide a comprehensive overview of the amendment to the export policy of Red Sanders wood, as outlined in the provided government notification. The analysis focuses on understanding the changes introduced by this amendment and their potential impact on stakeholders within the industry. The information presented is solely based on the details provided within the notification text.
**3. Policy Overview:**
* The policy being amended is the Foreign Trade Policy 2015-2020, specifically concerning the export of Red Sanders (Pterocarpus santulinus) wood.
* **Core Objective(s):** Based on the text, the core objectives of the amendment appear to be:
* Regulating the export of Red Sanders wood sourced from both cultivated land and confiscated sources.
* Implementing a quota system for the export of artificially propagated Red Sanders from Andhra Pradesh.
* Enhancing monitoring and verification of the origin and quantity of Red Sanders wood being exported.
* Preventing the illegal export of wild specimens of Red Sanders.
**4. Background and Rationale:**
The amendment likely arises from the need to address challenges in regulating the export of Red Sanders wood, ensuring sustainable harvesting practices, and preventing illegal trade. The specific reason for this amendment is to revise the export conditions to allow for a phased export of confiscated and cultivated Red Sanders, while also implementing measures to track and verify the source and quantity of exported wood. The introduction of quotas and enhanced documentation suggests a need to balance economic interests with conservation efforts and prevent exploitation.
**5. Key Provisions / Changes:**
This amendment introduces specific changes to the export policy related to item descriptions 188 and 188A in Chapter 44 of Schedule 2 of ITC HS Classification of Export Import Items.
* **Specific Part of Original Policy Changed:** The amendment substitutes the existing entries for SI. No. 188 and 188A in Chapter 44 of Schedule 2 of ITC HS Classification of Export Import Items.
* **New Rule/Provision:**
* **Item 188:** Red Sanders wood in any form, whether raw, processed, or unprocessed, is not permitted to be exported. However, an exception is made for value-added products and handicrafts made from Red Sanders wood procured from legal sources, up to the maximum amounts reported to MoEFCC. An annual export quota of 280 MT for Andhra Pradesh for artificially propagated Red Sanders is allowed. A zero export quota is set for wild specimens of red sanders.
* **Item 188A:** Export of Red Sanders wood in log form and roots, exclusively of cultivation origin obtained from private land including Pattaland, is permitted under license, subject to documentation requirements.
* **Difference/Effect of Changes:**
* Previously, Item 188 prohibited Red Sanders wood export. The amendment now permits the export of value-added products from legally obtained red sanders and sets a quota for artificially propagated red sanders from Andhra Pradesh.
* Previously, Item 188A was "Restricted" now export is only permitted under license, subject to specific conditions and documentation.
* The amendments clarify the conditions under which Red Sanders can be exported, introducing a quota system and stricter documentation requirements. This aims to better regulate the trade and ensure sustainability.
**6. Target Audience and Stakeholders:**
The directly affected stakeholders include:
* Exporters of Red Sanders wood and related products.
* Red Sanders wood cultivators, particularly in Andhra Pradesh.
* Government agencies involved in regulating and monitoring foreign trade, including the Directorate General of Foreign Trade (DGFT), the Ministry of Environment, Forest and Climate Change (MoEFCC), Directorate of Revenue Intelligence (DRI), and Customs.
* State governments, particularly Andhra Pradesh, Tamil Nadu, Maharashtra and Karnataka, due to their role in monitoring, digital platform development and enforcement.
**7. Implementation Aspects (Inferred):**
* **Responsible Agencies:**
* The Directorate General of Foreign Trade (DGFT) is responsible for implementing the export policy.
* The Ministry of Environment, Forest and Climate Change (MoEFCC) sets the annual export quota.
* The CITES (Convention on International Trade in Endangered Species) Management Authority of India is involved in permitting exports.
* State governments (Andhra Pradesh, Tamil Nadu, Maharashtra and Karnataka) are responsible for developing digital platforms and monitoring stocks. Principal Chief Conservator of Forests PCCF is responsible for issuing certificate of origin.
* **Timelines/Procedures:**
* An annual export quota is set for the period from April to March.
* Exporters are required to obtain a license and provide specific documentation, including a certificate of origin and a certificate of stock verification.
* State Governments should develop digital platform and MIS giving the no of trees, their age and diameter at breast height.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes include:
* Better regulation and monitoring of Red Sanders wood exports.
* Prevention of illegal trade and promotion of sustainable harvesting practices.
* Increased transparency and accountability in the Red Sanders trade.
* Facilitation of legitimate exports of value-added products and artificially propagated Red Sanders.
* Conservation of wild Red Sanders populations through strict export controls.
**9. Conclusion:**
The amendment to the export policy of Red Sanders wood represents a significant step towards regulating the trade and promoting sustainability. By introducing export quotas, enhancing documentation requirements, and promoting digital monitoring, the amendment aims to balance economic interests with the need to conserve this valuable resource. The changes are likely to have a direct impact on exporters, cultivators, and government agencies involved in the Red Sanders trade. The long-term success of this amendment will depend on effective implementation and enforcement by all stakeholders.
Key Entities Referenced
Foreign Trade Policy, 2015-2020: A trade policy referenced in the notification.
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that provides the legal framework for foreign trade.
ITC HS, 2018: Indian Trade Classification based on Harmonized System; Schedule 2 Export Policy
Red Sanders Pterocarpussantulinus: The scientific name for Red Sanders, a type of wood whose export policy is being amended.
Chapter 44: Chapter number in the ITC HS, 2018 Schedule 2 Export Policy related to wood.
CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora.
BSI NDF Report: Botanical Survey of India Non-Detriment Finding Report
MoEFCC: Ministry of Environment, Forest and Climate Change
DRI: Directorate of Revenue Intelligence
Andhra Pradesh: A state in India with an annual export quota of 280 MT for artificially Propagated red sanders
Tamil Nadu: A state in India
Maharashtra: A state in India
Karnataka: A state in India
DGFT: Directorate General of Foreign Trade
PCCF: Principal Chief Conservator of Forests
Assam: A state in India
Chhattisgarh: A state in India
Gujarat: A state in India
Madhya Pradesh: A state in India
Manipur: A state in India
Telangana: A state in India
Rajasthan: A state in India
Uttar Pradesh: A state in India
Haryana: A state in India
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-officio Additional Secretary, signatory of the notification.