Date: 2022-11-25Category: Not ApplicableState: Union GovernmentCountry: India
Fixation of new Standard Input Output Norms (SION) at E-136 for
export of wheat flour (Atta), deletion of SION E-110, amendment
in Appendix 4J and insertion of new para 4.05 (iii) under
Handbook of Procedures 2015-20- reg.
Executive Summary:
This Public Notice issued by the Director General of Foreign Trade announces changes to the Standard Input Output Norms (SION) for wheat flour (atta) exports. It deletes SION E110, fixes a new SION E136, amends Appendix 4J, and inserts a new paragraph 4.05 iii under the Handbook of Procedures 2015-2020. The new SION E136 is valid until wheat exports are prohibited.
Key Points / Main Content:
SION Changes:
* SION E110 is deleted.
* New SION E136 is introduced for wheat flour (atta) exports, allowing 1.00 Kg of wheat flour (atta) export for 1.07 Kg of wheat import.
* Wheat flour atta implies whole wheat flour atta and must be endorsed as a technical characteristic while applying for Advance Authorization.
Advance Authorization (AA) Conditions under SION E136:
* AA will be issued only to flour millers.
* AA will be issued with a pre-import condition.
* SION is valid until wheat exports are prohibited.
* Customs Authorities must confirm Bills of Entry for imported wheat when allowing exports.
* Procurement of wheat from the Domestic Tariff Area (DTA) is not permitted.
Appendix 4J Amendment:
* Wheat is placed under Appendix 4J with a pre-import condition.
* The Export Obligation Period (EOP) is 180 days from the date of clearance of each import consignment by Customs Authority.
Handbook of Procedures Amendment:
* Wheat flour (atta) exports are permitted under the Advance Authorization Scheme, subject to the pre-import condition of wheat under the notified SION.
* Domestic sourcing of wheat is not permitted, and invalidation letter/ARO facility is not available. Third-party exports are also not allowed.
* Import and Export are permitted only through EDI-enabled ports.
* No extension of EOP is allowed.
* Import is subject to actual user condition, and no transfer of imported wheat is permitted.
* Non-fulfilment of EO/non-achievement of stipulated value addition will result in a penalty of five times the CIF value of the imported material corresponding to the shortfall in EO, in addition to applicable duty and interest.
* Provisions of Paragraph 4.49 of the Handbook of Procedures are not applicable.
Impact Analysis:
Flour Millers:
Impact: Can export wheat flour (atta) under the Advance Authorization scheme with new conditions and SION E136.
Action Required: Adhere to the pre-import condition, source wheat from abroad, export through EDI enabled ports, and ensure compliance with the Export Obligation.
Customs Authorities:
Impact: Responsible for confirming Bills of Entry against imported wheat while allowing exports of wheat flour (atta) under Advance Authorization.
Action Required: Verify import documents and ensure compliance with the pre-import condition before allowing exports.
Exporters/Importers:
Impact: Must comply with the new SION, pre-import conditions, and restrictions on domestic sourcing.
Action Required: Source wheat from abroad, export through EDI enabled ports, and ensure compliance with the Export Obligation.
Director General of Foreign Trade:
Impact: Responsible for implementing and monitoring the amended policy.
Action Required: Ensure that the new SION and conditions are properly implemented and enforced.
Key Entities Referenced
Directorate General of Foreign Trade: The issuing authority for the public notice, under the Ministry of Commerce and Industry.
Foreign Trade Policy FTP, 20152020: The governing policy under which the public notice is issued and amended.
Standard Input Output Norms SION: Norms related to import and export items. This notice fixes a new SION and deletes an existing one.
Wheat Flour Atta: The export item for which a new Standard Input Output Norm (SION) E136 is fixed.
Wheat: The import item allowed against export of Wheat Flour Atta under Advance Authorization.
Advance Authorization AA: A scheme allowing duty-free import of inputs for export production, subject to conditions outlined in the notice.
Appendix 4J: An appendix that has been amended related to import items export obligation period.
Domestic Tariff Area DTA: Area within India from which procurement of wheat is not permissible against the Advance Authorization.
(To Be Published In the Gazette of India Extraordinary Part-I Section-I)
Government of India
Ministry of Commerce and Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Public Notice No. 38 /2015-2020
New Delhi, dated the 2S November, 2022
Subject:- Fixation of new Standard Input Output Norms (SION) at E-136 for export of wheat
flour (Atta), deletion of SION E-110, amendment in Appendix 4J and insertion of new para
4.05 (iii) under Handbook of Procedures 2015-20- reg.
In exercise of the powers conferred under paragraph 1.03 & 2.04 of the Foreign Trade
Policy (FTP), 2015-2020, as amended from time to time, and as per provision of paragraph
4.13 of Foreign Trade Policy, the Director General of Foreign Trade hereby makes the
following amendments:
1. The Standard Input Output Norms (SION) E-110 stands deleted.
2. Anew SION in food products category is inserted as under:
SION Export Item Quantity Import Quantity
item
E-136 Wheat Flour (Atta) 1.00 Kg |Wheat 1.07 Kg
Note: For the purpose of this SION, ‘wheat flour (atta)’ implies to ‘whole wheat flour (atta)’
and the same is to be endorsed as technical characteristic while applying for the Advance
Authorization.
3. The Advance Authorization (AA) under this SION is subject to the following
conditions:
i. The Advance Authorization (AA) shall be issued only to flour millers.
ii. The AA shall be issued with pre-import condition.
iii. | The*SION is valid until ‘wheat’ is prohibited for exports. Thereafter, no further AA
will be issued under the SION. AAs already issued will continue to operate in the
normal course.
iv. The Bills of Entry against which wheat has been imported shall be confirmed by
Custom Authorities while allowing exports.
v. Procurement of wheat from Domestic Tariff Area (DTA) is not permissible in any
case against the Advance Authorization.
pe4. The following amendment is made in Appendix 4J:
Serial no. Import Item(s) Export Obligation Period with pre-import
condition from the date of clearance of each
import consignment by Customs Authority
Wheat 180 days
5. After sub para 4.05 (ii) a new sub para 4.05 (iii) is introduced as under:
“Wheat Flour (Atta)” is permitted to be exported under the Advance Authorization
Scheme, subject to pre-import condition of wheat under the notified SION only. No
domestic/ indigenous sourcing of wheat is permitted and the invalidation letter/ARO
facility is not available. Third party exports are also not allowed in this case. Import
and Export would be permitted only through EDI enabled ports. The Export
Obligation period (EOP) of Advance Authorization for wheat shall be 180 days from
the date of clearance of each import consignment and no extension in EOP shall be
allowed. Such import shall be subject to actual user condition and no transfer of
imported wheat for any purpose, including job work, shall be permitted. In case of
non-fulfilment of EO/ non-achievement of stipulated value addition, a penalty equal
to five times of the CIF value of the imported material, corresponding to the shortfall
in EO, shall be imposed in addition to the payment of applicable duty and interest.
Provisions of Paragraph 4.49 of Handbook of Procedures shall not be applicable in
this case.
Effect of this Public Notice:
The SION-E110 stands deleted. The export of wheat flour (atta) is allowed under Advance
Authorization Scheme. Accordingly, a new SION has been notified and import of ‘Wheat’ is
placed under Appendix 4J with pre-import condition. Domestic procurement is not allowed in
case of such Advance Authorization.
(Issued from File No. 01/94/180/157/AM22/PC-4)