## Report on Amendment to Export Policy for Rice (Basmati and Non-Basmati)
**1. Executive Summary:**
This report analyzes an amendment to the Foreign Trade Policy concerning the export of Basmati and Non-Basmati rice. The amendment, detailed in Notification No. 60/2015-2020, modifies the policy conditions outlined in Schedule 2 of the ITC HS Export Policy, 2018, specifically affecting Sl. No. 55 and 57 relating to exports to European countries. The key change involves mandatory inspection certificates for rice exports to remaining European countries (excluding Iceland, Liechtenstein, Norway, and Switzerland) effective July 1, 2022. This amendment aims to modify the existing export inspection requirements for rice shipments to specific European destinations.
**2. Introduction:**
This report provides an analysis of a recent amendment to the export policy for rice (Basmati and Non-Basmati), as detailed in the provided government notification. The report aims to inform affected industry stakeholders about the specific changes introduced and their potential implications, based solely on the content of the provided text.
**3. Policy Overview:**
* This report concerns an **amendment** to an existing policy. The original policy being amended is Notification No. 12/2015-2020 dated 01.07.2021, regarding the policy condition at Sl.No. 55 and 57, Schedule 2 of ITC HS Export Policy, 2018.
* **Core Objective(s):** Based on the provided text, the core objective of the *original* policy is to regulate the export of Basmati and Non-Basmati rice by specifying conditions, including inspection requirements, for exports to various European countries. The objective of the *amendment* is to modify these inspection requirements.
**4. Background and Rationale:**
This amendment likely stems from a need to revise the export inspection procedures for rice shipments to remaining European countries, as the prior policy only required the Certificate of Inspection from EIA/EIC for exports of Rice Basmati and Non-Basmati to EU member states and other European Countries namely Iceland, Liechtenstein, Norway and Switzerland. The amendment possibly reflects changes in trade agreements, quality control requirements, or a need for stricter oversight of rice exports to ensure compliance with international standards.
**5. Key Provisions / Changes:**
This section focuses on the changes introduced by the amendment text to the Schedule 2 of ITC HS Export Policy, 2018.
* **Specific Part Changed:** The amendment directly modifies the "Present Policy Condition" for Sl. No. 55 and 57 in Chapter 10 of Schedule 2, ITC HS Export Policy, 2018, concerning Non-Basmati and Basmati rice, respectively.
* **New Rule/Provision:** The amendment mandates that for exports to remaining European countries (excluding Iceland, Liechtenstein, Norway, and Switzerland), a "Certificate of Inspection by Export Inspection Council/Export Inspection Agency" is mandatory, effective July 1, 2022.
* **Difference/Effect of Change:** Previously, the text suggests (but does not explicitly state that) Certificate of Inspection was *not* universally required for all European countries, rather only specific European Countries. Now, exporters to the remaining European countries are explicitly required to acquire a "Certificate of Inspection by Export Inspection Council/Export Inspection Agency" by July 1, 2022. This likely introduces a new procedural step and associated costs for exporters targeting these markets.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* **Exporters of Basmati and Non-Basmati rice from India.**
* **The Export Inspection Council (EIC) and Export Inspection Agencies (EIAs).**
* **Importers of Basmati and Non-Basmati rice in the remaining European countries (excluding Iceland, Liechtenstein, Norway, and Switzerland).**
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Export Inspection Council (EIC) and Export Inspection Agencies (EIAs) are the responsible bodies for issuing the required certificates of inspection. The Directorate General of Foreign Trade (DGFT) is responsible for administering the policy.
* **Timelines:** The key timeline is that the mandatory inspection requirement for the remaining European countries comes into effect on **July 1, 2022**.
* **Procedures (Inferred):** Exporters targeting the remaining European markets will need to apply for and obtain inspection certificates from the EIC/EIAs before shipping their goods.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcome of this amendment is to:
* Ensure the quality and standards of Basmati and Non-Basmati rice exported to the remaining European countries.
* Potentially increase the administrative burden and compliance costs for exporters targeting these markets.
* Potentially create trade disruptions in the short term as exporters adjust to the new requirements.
* Potentially provide better assurances to consumers and importers in the remaining European countries regarding the quality of Indian rice.
**9. Conclusion:**
The amendment to the export policy for Basmati and Non-Basmati rice introduces a mandatory inspection requirement for exports to remaining European countries (excluding Iceland, Liechtenstein, Norway, and Switzerland), effective July 1, 2022. This change necessitates that exporters obtain a "Certificate of Inspection by Export Inspection Council/Export Inspection Agency" to comply with the new regulations. This policy modification is significant for exporters, the EIC/EIAs, and importers in the affected European markets, as it alters the export procedures and potentially impacts trade flows.
Key Entities Referenced
Foreign Trade Development Regulation Act, 1992: A legal act that provides the central government with powers related to foreign trade.
Foreign Trade Policy, 2015-2020: A policy document providing guidelines and regulations for foreign trade.
Central Government: The governing body responsible for making amendments to export policies.
ITC HS Export Policy, 2018: Export policy related to the Indian Trade Clarification based on Harmonized System (ITC HS).
Rice Basmati: A variety of rice that is subject to export policy conditions.
Non-Basmati: A variety of rice that is subject to export policy conditions.
European Union: An economic and political union of European countries, referred to in the context of export regulations.
Iceland: A European country with specific export regulations mentioned.
Liechtenstein: A European country with specific export regulations mentioned.
Norway: A European country with specific export regulations mentioned.
Switzerland: A European country with specific export regulations mentioned.
Export Inspection Council: An agency involved in the inspection and certification of exports.
Export Inspection Agency: An agency involved in the inspection and certification of exports.
Santosh Kumar Sarangi: 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 foreign trade regulations.
Ministry of Commerce and Industry: The Indian government ministry responsible for policies related to commerce and industry.
New Delhi: The location where the notification was issued; New Delhi, Delhi, India
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सी.जी.-डी.एलxx.x-GअID.-E0x9xx0 32022-234013
CG-DL-E-09032022-234013
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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,o a 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 9th March, 2022
No. 60/2015-2020
Subject : Amendment in Policy condition of Sl. No. 55 & 57, Chapter 10 Schedule-2, ITC(HS)
Export Policy, 2018 –reg.
S.O. 1043(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. 12/2015-20 dated 01.07.2021 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. Tariff item Item Export Present Policy Condition Revised Policy
No. Description Policy Condition
HS code
55 1006 2000 Non-Basmati Free Export to EU Member States Export to EU Member
Rice and European countries States and European
100630
namely Iceland, countries namely
1006 3010 Liechtenstein, Norway and Iceland, Liechtenstein,
Switzerland permitted subject Norway and Switzerland
1006 3090
to issuance of Certificate of permitted subject to
10064000 Inspection by Export issuance of Certificate of
Inspection Council / Export Inspection by Export
Inspection Agency’. Inspection Council /
Export Inspection
Certificate of Inspection
Agency’.
by Export Inspection
Council/ Export Inspections Certificate of
Agency shall be mandatory Inspection by Export
for export to remaining Inspection Council/
European countries with Export Inspections
effect from 1st January, 2022. Agency shall be
mandatory for export to
remaining European
countries with effect
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 Iceland, countries namely
milled, milled Liechtenstein, Norway and Iceland, Liechtenstein,
both in either Switzerland permitted Norway and
par-boiled or subject to issuance of Switzerland permitted
raw condition. Certificate of Inspection by subject to issuance of
Export Inspection Council / Certificate of
Export Inspection Agency. Inspection by Export
Inspection Council /
Certificate of Inspection by
Export Inspection
Export Inspection Council/
Agency.
Export Inspections Agency
shall be mandatory for Certificate of
export to remaining Inspection by Export
European countries with Inspection Council/4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
effect from 1st January, Export Inspections
2022. Agency shall be
mandatory for export to
remaining European
countries with effect
from 1st July, 2022.
3. Effect of notification:
The Notification No. 12/2015-2020 dated 01.07.2021 is amended to the extent that export of Rice
(Basmati and Non-Basmati) to EU member states and other European Countries namely Iceland,
Liechtenstein, Norway and Switzerland only will require Certificate of Inspection from EIA/EIC.
Export to remaining European countries (except 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.