Executive Summary:
This notification amends the export policy of biofuels under Chapter 27 of Schedule 2 of the ITC HS Classification of Export and Import Items. It revises Notification No. 29/2015-20 dated 28.08.2018, permitting biofuel exports from Special Economic Zones (SEZ) and Export Oriented Units (EoUs) for both fuel and non-fuel purposes without restrictions, provided they are produced using only imported feedstock. The notification is effective from March 9, 2023.
Key Points / Main Content:
* **Amendment Overview:**
* Notification No. 29/2015-20 dated 28.08.2018 is amended.
* **Revised Export Policy for Biofuels (HS Code 22072000, 2710 2000, 3826 0000):**
* Export is generally permitted under license for non-fuel purposes.
* Biofuel exports from Special Economic Zones (SEZ) and Export Oriented Units (EoUs) are allowed for both fuel and non-fuel purposes without any restrictions.
* The exception applies only when biofuels are produced using exclusively imported feedstock.
Impact Analysis:
* **Special Economic Zones (SEZ) and Export Oriented Units (EoUs):**
* Impact: SEZ and EoUs involved in biofuel production can now export biofuels for both fuel and non-fuel purposes without restrictions, provided they use only imported feedstock.
* Action Required: Ensure that biofuel production for unrestricted export utilizes only imported feedstock and comply with licensing requirements for exports outside of this provision.
* **Directorate General of Foreign Trade (DGFT):**
* Impact: Responsible for implementing and overseeing the revised export policy.
* Action Required: Enforce the new regulations, particularly regarding the origin of feedstock used in biofuel production for export from SEZ and EoUs.
* **Exporters of Biofuels:**
* Impact: Benefit from relaxed export restrictions for biofuels produced in SEZ and EoUs using imported feedstock, but must still adhere to licensing requirements for other biofuel exports.
* Action Required: Understand the updated export regulations, ensure compliance with feedstock origin requirements, and obtain necessary licenses for biofuel exports.
Key Entities Referenced
Foreign Trade Development Regulation Act, 1992: An act of the Indian Parliament governing foreign trade.
Foreign Trade Policy, 2015-2020: The foreign trade policy in effect during the specified period.
Biofuels: The subject of the export policy amendments in the notification.
Special Economic Zones SEZ: Designated areas in India with different economic regulations.
Export Oriented Units EoUs: Businesses in India that export the majority of their production.
Directorate General of Foreign Trade: The Indian government agency responsible for implementing foreign trade policy.
Santosh Kumar Sarangi: Director General of Foreign Trade and Ex officio Addl. Secretary to the Government of India
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and industrial development.
To be published in the Gazette of India Extraordinary Part-II, Section-3, Sub-Section (II)
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Notification No. God _/2015-2020
New Delhi, Dated:,92"March, 2023
Subject: Amendments in Export Policy of Bio-fuels under Chapter 27 of Schedule 2
(Export Policy) ITC (HS) classification of Export and Import.
S.O. (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 2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby amends
Notification No. 29/2015-20 dated 28.08.2018
2. The revised policy conditions of Bio-Fuels under SI. No. 115A, 115B and 115C under
Chapter 27 of Schedule 2 of ITC (HS) Classification of Export Import Items will be as
follows:
S.No. |Tariff Item |Unit {Item Description [Present [Present Policy Revised Policy Condition
IHS Code Policy Condition
115A [22072000 |Kg/u |Ethy! alcohol and [Restricted Export is|Export is permitted under license]
spirits, permitted underjonly for non-fuel _ purposes,
denatured, of any license only for/However, Export of Biofuel from
Inon-fuel Special Economic Zones (SEZ)
purposes, Export Oriented Units (EoUs), are]
allowed for Fuel as well as Non-
Fuel purposes without = am
restriction when produced using!
nly imported feed __stock|
Woe115B 2710 2000 [KKg/u Petroleum oils and
loils obtained from
bituminous
Iminerals (other than crude) and
preparations not
lelsewhere
specified or
included,
containing by
lweight 70% or
more of
Restricted |Export is Export is permitted under license
permitted only for non-fuel purposes
lunder license However, Export of Biofuel from|
lonly for non- Special Economic Zones (SEZ),
fuel purposes Export Oriented Units (EoUs), are|
jallowed for Fuel as well as Non-|
Fuel — purposes —_ without any|
restrictions when produced using!
lonly imported feed stock.
petroleum
loils or of oils
obtained from
bituminous
minerals, these
oils being the
basic constituents
lof the
preparations,
containing
biodiesel, other
jthan waste oils.
115C 3826 0000 |Kg/u Biodiesel and Restricted |Export is|Export is permitted under licensel
mixtures _ thereof, permitted under|only for —_non-fuel purposes,
Inot containing or license only for}However, Export of Biofuel from|
containing —_less Inon-fuel Special Economic Zones (SEZ),
lt wh ea in
g ht
70 % b oy
f
purposes Export Oriented Units (EoUs), are|
lallowed for Fuel as well as Non-
petroleum oils and
Fuel purposes _ without any|
loils obtained from
restriction when produced using}
bituminous
lonly imported feed stock.
Iminerals.
3. Effect of this Notification:
The Notification no. 29/2015-20 dated 28.08.2018 is amended to the extent that Export of
Biofuel from Special Economic Zones (SEZ)/ Export Oriented Units (EoUs), are allowed forFuel as well as Non-Fuel purposes without any restriction when produced using only
imported feed stock.
bo
ae
(Santosh Kumar Sarangi)
Director General of Foreign Trade&
Ex- officio Addl. Secretary to the Government of India
E-mail: dgft@nic.in
(Issued from F.No. 01/91/180/21/AM-18/EC)