## Policy Analysis Report: Amendment to Export Policy for Rice (Basmati and Non-Basmati)
**1. Executive Summary:**
This report analyzes an amendment to the export policy for Basmati and Non-Basmati rice, as outlined in Notification No. 61/2015-2020, dated March 23, 2022. The amendment modifies the policy conditions related to export to European countries, specifically concerning the requirement for a Certificate of Inspection. The key change is the introduction of mandatory inspection by the Export Inspection Council/Export Inspection Agency (EIC/EIA) for exports to the remaining European countries (excluding United Kingdom, Iceland, Liechtenstein, Norway and Switzerland) effective July 1, 2022. This amendment aims to ensure quality control and compliance for rice exports to the specified European markets.
**2. Introduction:**
This report provides an informative analysis of a government notification amending the export policy for rice. The analysis is based solely on the provided policy text and aims to clarify the changes introduced, their implications, and the affected stakeholders.
**3. Policy Overview:**
* This notification amends the policy condition at Sl. No. 55 and 57, Schedule 2 of ITC (HS) Export Policy, 2018.
* **Core Objective:** As inferred from the text, the core objective is to regulate and potentially standardize the quality control process for rice exports (both Basmati and Non-Basmati) to specific European markets through mandatory inspection.
**4. Background and Rationale:**
This amendment appears to be driven by a need to standardize and potentially strengthen the quality assurance process for rice exports to certain European countries. The original policy likely allowed for variations in inspection requirements across all European destinations. This amendment addresses this by mandating a specific inspection agency for the "remaining" European countries (excluding United Kingdom, Iceland, Liechtenstein, Norway and Switzerland), which suggests a prior absence of this specific requirement or inconsistency in its application.
**5. Key Provisions / Changes:**
This notification specifically amends the policy conditions at Sl. No. 55 and 57 concerning the export of Non-Basmati and Basmati rice, respectively.
* **Specific Part Changed:** The policy conditions for Tariff item/HS codes 1006 2000 (Non-Basmati Rice) and 1006 3020 (Basmati Rice) regarding exports to European countries are being modified.
* **New Rule/Provision:** The amended policy mandates that exports of both Basmati and Non-Basmati rice to the "remaining European countries" (excluding United Kingdom, Iceland, Liechtenstein, Norway and Switzerland) will require a Certificate of Inspection by the Export Inspection Council/Export Inspection Agency (EIC/EIA).
* **Effect of the Change:** Previously, exports to all EU Member States and European countries, namely Iceland, United Kingdom, Liechtenstein, Norway and Switzerland permitted subject to issuance of Certificate of Inspection by Export Inspection Council/Export Inspection Agency. With this amendment, the "remaining European countries" now fall under a mandatory inspection regime by the EIC/EIA, effective July 1, 2022. The exports to EU Member States and European countries, namely Iceland, United Kingdom, Liechtenstein, Norway and Switzerland will continue with the existing policy. This is a stricter requirement than what was previously in place for these specific "remaining" European countries.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders affected by this amendment are:
* Exporters of Basmati and Non-Basmati rice from India.
* Export Inspection Council/Export Inspection Agency (EIC/EIA).
* Importers of Basmati and Non-Basmati rice in the "remaining European countries" (excluding United Kingdom, Iceland, Liechtenstein, Norway and Switzerland).
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Export Inspection Council/Export Inspection Agency (EIC/EIA) is the responsible body for issuing the Certificate of Inspection for exports to the "remaining European countries".
* **Timeline:** The amended policy comes into effect on July 1, 2022.
* **Procedure:** Exporters will need to obtain a Certificate of Inspection from the EIC/EIA for shipments to the "remaining European countries" after July 1, 2022, to comply with the new regulation.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of this amendment are:
* **Improved Quality Control:** Ensuring a consistent standard of quality for rice exports to the "remaining European countries".
* **Enhanced Compliance:** Increasing adherence to export regulations.
* **Trade Facilitation (potentially):** Standardized inspections could potentially streamline the export process in the long run, although initial implementation may present challenges.
* **Increased Costs:** Exporters to "remaining European countries" would face additional costs for mandatory inspection.
**9. Conclusion:**
The amendment to the export policy for Basmati and Non-Basmati rice introduces a mandatory inspection requirement for exports to the "remaining European countries" (excluding United Kingdom, Iceland, Liechtenstein, Norway and Switzerland), effective July 1, 2022. This change is intended to standardize and strengthen quality control measures, potentially impacting exporters and importers alike. Exporters need to be aware of the new requirements and take necessary steps to comply with the updated regulations to ensure smooth trade operations.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: Indian law governing foreign trade.
Foreign Trade Policy, 2015-2020: A policy document that outlines the guidelines and objectives for India's foreign trade.
Central Government: The government of India
ITC HS Export Policy, 2018: Indian Trade Clarification based on Harmonized System of Coding Export Policy of 2018.
Rice Basmati: A variety of long-grain rice.
Rice Non Basmati: Any variety of rice other than basmati rice.
European Union: A political and economic union of member states located primarily in Europe.
Iceland: A Nordic island country in the North Atlantic.
United Kingdom: A country in Europe, consisting of Great Britain (England, Scotland, and Wales) and Northern Ireland.
Liechtenstein: A German-speaking microstate in the Alps.
Norway: A Nordic country in Northern Europe.
Switzerland: A landlocked country in Central Europe.
Export Inspection Council: An agency responsible for quality control and inspection of goods for export from India.
Export Inspection Agency: An agency responsible for quality control and inspection of goods for export from India.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-Officio Additional Secretary
Directorate General of Foreign Trade: The agency of the Ministry of Commerce and Industry of the Government of India responsible for implementing the foreign trade policy.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-23032022-234394
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CG-DL-E-23032022-234394
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 1228] नई दिल्ली, बधु वार, माच च23, 2022/चत्रै 2, 1944
No. 1228] NEW DELHI, WEDNESDAY, MARCH 23, 2022/CHAITRA 2, 1944
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insu vij lfpo[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
MINISTRY OF COMMERCE AND INDUSTRY
(Department of Commerce)
(DIRECTORATE GENERAL OF FOREIGN TRADE)
NOTIFICATION
New Delhi, the 23rd March, 2022
No. 61/2015-2020
Subject: Amendment in Policy condition of Sl.No. 55 & 57, Chapter 10 Schedule-2, ITC(HS) Export
Policy, 2018 –reg.
S.O. 1269(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 Para
2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby makes the following
amendment to the Notification No. 60/2015-20 dated 09.03.2022 amending the policy condition at
Sl. No. 55 and 57, Schedule 2 of ITC (HS) Export Policy, 2018 for export of rice (Basmati and Non-
Basmati).
2. The following policy conditions shall be amended to the existing entries of Chapter 10 at Sl. No. 55
and 57:-
Sl.No. Tariff item Item Export Present Policy Condition Revised Policy Condition
HS code Description Policy
55 1006 2000 Non-Basmati Free Export to EU Member Export to EU Member
Rice States and European States and European
100630
countries namely countries namely
1006 3010 Iceland, United Kingdom,
Liechtenstein, Iceland, Liechtenstein,
1006 3090
Norway and Norway and
10064000 Switzerland permitted Switzerland permitted
subject to issuance of subject to issuance of
Certificate of Certificate of
Inspection by Export Inspection by Export
Inspection Council / Inspection Council /
Export Inspection Export Inspection
Agency’. Agency’.
Certificate of Certificate of
Inspection by Export Inspection by Export
Inspection Council/ Inspection Council/
Export Inspections Export Inspections
Agency shall be Agency shall be
mandatory for export mandatory for export
to remaining to remaining
European countries European countries
with effect with effect from 1st
from 1st July, 2022. July, 2022.
57 1006 3020 Basmati Rice Free Export to EU Export to EU
(Dehusked Member States and Member States and
(Brown),semi- European countries European countries
milled, milled namely Iceland, namely United
both in either Liechtenstein, Kingdom, Iceland,
par-boiled or Norway and Liechtenstein,
raw condition. Switzerland Norway and
permitted subject to Switzerland
issuance of permitted subject to
Certificate of issuance of
Inspection by Certificate of
Export Inspection Inspection by Export4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
Council / Export Inspection Council /
Inspection Agency. Export Inspection
Certificate of Agency.
Inspection by Certificate of
Export Inspection Inspection by Export
Council/ Export Inspection Council/
Inspections Agency Export Inspections
shall be mandatory Agency shall be
for export to mandatory for export
remaining European to remaining
countries with effect European countries
from 1st July, 2022. with effect
from 1st July, 2022.
3. Effect of notification:
The Notification No. 60/2015-2020 dated 09.03.2022 is amended to the extent that export of
Rice (Basmati and Non-Basmati) to EU member states and other European Countries namely United
Kingdom, Iceland, Liechtenstein, Norway and Switzerland only will require Certificate of Inspection
from EIA/EIC. Export to remaining European countries (except United Kingdom, Iceland,
Liechtenstein, Norway and Switzerland) will require Certificate of Inspection by Export Inspection
Council / Export Inspection Agency for export from 1st July, 2022.
[F. No. 01/91/171/148/AM21/EC/E-18655]
SANTOSH KUMAR SARANGI, 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.