## Report on Amendment to Export Policy for Rice (Basmati and Non-Basmati)
**1. Executive Summary:**
This report analyzes an amendment to the existing export policy for rice (both Basmati and Non-Basmati), specifically focusing on the requirement for a Certificate of Inspection for exports to European countries. The core purpose of this amendment is to adjust the applicability of mandatory inspection certificates based on the destination country within Europe, differentiating between EU member states plus select other European nations (UK, Iceland, Liechtenstein, Norway, and Switzerland) and the remaining European countries. The key finding is a phased implementation of mandatory inspection certificates, with a specific date (January 1, 2023) for the expanded application.
**2. Introduction:**
This report aims to provide a clear and concise overview of the recent amendment to the export policy for rice (Basmati and Non-Basmati) based solely on the provided official notification. The report will analyze the changes introduced, their potential impact, and relevant implementation aspects discernible from the text.
**3. Policy Overview:**
* This report concerns an **amendment** to the existing Foreign Trade Policy 2015-2020, specifically related to Notification No. 612015 2020 dated 23.03.2022.
* **Core Objective (Inferred):** The amendment seeks to refine the export procedures for rice (Basmati and Non-Basmati) by clarifying and modifying the requirements for inspection certificates based on the destination country within Europe. The goal appears to be a more targeted application of mandatory inspections.
**4. Background and Rationale:**
The provided text suggests that the initial policy (Notification No. 612015 2020) required inspection certificates for rice exports to a broad range of European countries. The amendment appears to address a need to differentiate between specific European nations. The most likely rationale is to streamline export processes and potentially reduce the burden of mandatory inspections for exports to certain European countries while maintaining oversight for others. This could be due to varying import regulations or risk profiles across different European markets.
**5. Key Provisions / Changes:**
This is an **Amendment**, and the focus is on the *changes introduced*:
* **Specific Part of Original Policy Changed:** The amendment modifies the "policy condition" specified at Sl. No. 55 and 57 in Schedule 2 of ITC HS Export Policy, 2018, related to the export of Non-Basmati and Basmati rice respectively (ITC HS codes 1006 2000, 1006 30, 1006 3010, 1006 3090, 1006 40 00 and 1006 3020).
* **New Rule/Provision:**
* For exports to EU member states, plus the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland, the export will continue to be “permitted subject to issuance of Certificate of Inspection by Export Inspection Council/Export Inspection Agency.”
* For exports to *remaining European countries* (i.e., all European countries *excluding* the EU member states, UK, Iceland, Liechtenstein, Norway, and Switzerland), the "Certificate of Inspection by Export Inspection Council Export Inspection Agency shall be mandatory...with effect from 1st January, 2023."
* The existing effective date for EU member states, UK, Iceland, Liechtenstein, Norway, and Switzerland remains July 1, 2022.
* **Difference/Effect of the Change:** The primary effect of this amendment is to *delay* the mandatory inspection requirement for countries *outside* of the EU member states plus the UK, Iceland, Liechtenstein, Norway and Switzerland to January 1, 2023. Before this amendment, the implication was a uniform effective date for all countries in Europe. This allows exporters additional time to prepare for compliance with the inspection certificate requirement for these "remaining European countries."
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Exporters of Basmati and Non-Basmati rice.
* Export Inspection Council (EIC) and Export Inspection Agencies (EIA).
* Importers of Basmati and Non-Basmati rice in European countries, particularly those in the "remaining European countries" category (i.e. European countries that are *not* EU member states, the UK, Iceland, Liechtenstein, Norway, and Switzerland).
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Export Inspection Council (EIC) and Export Inspection Agencies (EIA) are responsible for issuing the Certificate of Inspection. The Directorate General of Foreign Trade (DGFT) is responsible for implementing and enforcing the policy.
* **Timelines:**
* Exports to EU member states, the United Kingdom, Iceland, Liechtenstein, Norway, and Switzerland: Certificate of Inspection mandatory from July 1, 2022.
* Exports to remaining European countries (excluding the above): Certificate of Inspection mandatory from January 1, 2023.
* **Specific to Amendment:** The key implementation aspect of this amendment is the deferred implementation date for the expanded inspection certificate requirement. Exporters need to be aware of the January 1, 2023, deadline to ensure compliance.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of these specific changes is to:
* Provide rice exporters with a longer lead time to prepare for the inspection certificate requirements for exports to the "remaining European countries."
* Potentially reduce the immediate administrative burden on the EIC/EIA by phasing in the expanded inspection requirements.
* Ensure that exports to all European countries (with some exceptions) are subject to a standardized level of quality control and inspection, albeit with a phased implementation. The impact for exporters will be needing to meet the inspection requirements by the specified date to continue exporting to all European markets.
**9. Conclusion:**
This amendment refines the export policy for Basmati and Non-Basmati rice by introducing a phased implementation of mandatory inspection certificates for exports to European countries. While exports to EU member states, the UK, Iceland, Liechtenstein, Norway and Switzerland require certificates from July 1, 2022, a delayed implementation until January 1, 2023, is granted to "remaining European countries." This amendment is significant because it provides exporters with additional time to prepare for the new requirements and ensures a standardized level of quality control for rice exports to the European market. Exporters should familiarize themselves with the requirements for obtaining inspection certificates from the EIC/EIA to ensure continued access to European markets.
Key Entities Referenced
Foreign Trade Development Regulation Act, 1992: An act of the government related to foreign trade.
Foreign Trade Policy, 2015-2020: A policy document related to foreign trade.
Central Government: The executive authority issuing the notification.
ITC HS Export Policy, 2018: Export policy for items classified under the ITC HS code.
Rice Basmati: A type of rice, specifically Basmati, regulated by the policy.
Rice Non-Basmati: A type of rice, specifically Non-Basmati, regulated by the policy.
European Union: A political and economic union of European countries, affected by the export policy.
United Kingdom: A European country with specific export regulations mentioned in the policy.
Iceland: A European country with specific export regulations mentioned in the policy.
Liechtenstein: A European country with specific export regulations mentioned in the policy.
Norway: A European country with specific export regulations mentioned in the policy.
Switzerland: A European country with specific export regulations mentioned in the policy.
Export Inspection Council: An agency responsible for issuing certificates of inspection for exports.
Export Inspection Agency: An agency responsible for issuing certificates of inspection for exports.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex-Officio Additional Secretary, signatory of the notification.
Ministry of Commerce and Industry: The government ministry under which the Directorate General of Foreign Trade operates.
Directorate General of Foreign Trade: The issuing authority for the notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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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
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[फा. स.ं 01@91@171@35@,,e&20@bZlh@bZ&18655]
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MINISTRY OF COMMERCE AND INDUSTRY
Department of Commerce
(Directorate General of Foreign Trade)
NOTIFICATION
New Delhi, the 17th August, 2022
No. 27/2015-2020
S.O. 3879(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 of the Foreign Trade
Policy, 2015-20, the Central Government hereby makes the following amendment to the Notification No. 61/2015-
2020 dated 23.03.2022 by amending by 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).[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
2. The following policy conditions shall be amended/added to the existing entries of Chapter 10 at Sl. No. 55
and 57:-
S.No ITC (HS) Item Export Present Policy Condition Revised Policy Condition
Code Description Policy
55 1006 2000 Non-Basmati Free Export to EU Member Export to EU Member
1006 30 Rice States and European States and European
1006 3010 countries namely United countries namely United
1006 3090 Kingdom, Iceland, Kingdom, Iceland,
1006 40 00 Liechtenstein, Norway Liechtenstein, Norway
and Switzerland and Switzerland permitted
permitted subject to subject to issuance of
issuance of Certificate of Certificate of Inspection
Inspection by Export by Export Inspection
Inspection Council/Export Inspection
Council/Export Agency’
Inspection Agency’.
Certificate of Inspection
Certificate of Inspection by Export Inspection
by Export Inspection Council/ Export
Council/ Export Inspection Agency shall
Inspection Agency shall be mandatory for export
be mandatory for export to remaining European
to remaining European countries with effect
countries with effect from 1st January, 2023
from 1st July, 2022
57 1006 3020 Basmati Rice Free Export to EU Member Export to EU Member
(Dehusked States and European States and European
(Brown),semi- countries namely United countries namely United
milled, milled Kingdom, Iceland, Kingdom, Iceland,
both in either Liechtenstein, Norway Liechtenstein, Norway
par-boiled or and Switzerland and Switzerland permitted
raw condition. permitted subject to subject to issuance of
issuance of Certificate of Certificate of Inspection
Inspection by Export by Export Inspection
Inspection Council / Council / Export
Export Inspection Inspection Agency.
Agency.
Certificate of Inspection
Certificate of Inspection by Export Inspection
by Export Inspection Council/ Export
Council/ Export Inspections Agency shall
Inspections Agency shall be mandatory for export
be mandatory for export to remaining European
to remaining European countries with effect from
countries with effect 1st January, 2023
from 1st July, 20224 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
3. Effect of notification:
The Notification No. 61/2015-20 dated 23.03.2022 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 January, 2023.
[F. No. 01/91/171/35/AM20/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.