Home India Ministry of Commerce and Industry In exercise of powers conferred by Section 3 of FT DR Act 19...
Date: 2019-10-11 Category: Extra Ordinary State: Union Government Country: India

In exercise of powers conferred by Section 3 of FT DR Act 1992, read with paragraph 1 02 and 2 01 of the Foreign Trade Policy, 2015 2020

Issued by Ministry of Commerce and Industry · Department of Commerce

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Executive Summary & Key Takeaways

Executive Summary: This notification amends the import policy conditions for Urea under Exim Code 31021000 in the ITC HS 2017, Schedule I. It is issued by the Directorate General of Foreign Trade, Ministry of Commerce and Industry, and is effective immediately. The amendment liberalizes import conditions for specific types of urea. Key Points / Main Content: * **Amendment Authority**: The amendment is made under the powers conferred by Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020. * **Policy Change for Exim Code 3102 10 00 (Urea)**: * **Existing Policy**: Import allowed through State Trading Enterprises (STC), MMTC (Minerals and Metals Trading Corporation), and RCF (Rashtriya Chemicals and Fertilizers) subject to Para 2.20 of Foreign Trade Policy, 2015-2020. Import of Technical Grade Urea (TGU) for non-agricultural purpose was "Free" with Actual User Condition. * **Revised Policy**: Import allowed through STC, MMTC, and RCF subject to Para 2.20 of Foreign Trade Policy, 2015-2020. Import of Technical Grade Urea (TGU) meant for industrial use/NPK Manufacturing shall be "Free". * **Immediate Effect**: The import policy for Urea for industrial or non-agricultural use, besides Technical Grade Urea (TGU) and Industrial Urea, shall be free with immediate effect. * **STE Designation**: M/s Rashtriya Chemicals & Fertilizers (RCF) is designated as the State Trading Enterprise (STE) for the import of Urea on Government account. Impact Analysis: * **Importers of Urea:** * Impact: Importers of industrial or non-agricultural grade urea, apart from TGU and industrial urea, will benefit from the removal of import restrictions. Importers of Technical Grade Urea (TGU) meant for industrial use/NPK Manufacturing shall be "Free". * Action Required: Take note of the revised import policy and adjust import strategies accordingly. * **Rashtriya Chemicals & Fertilizers (RCF):** * Impact: RCF continues to be a designated State Trading Enterprise for Urea imports on Government account. * Action Required: Continue to fulfill its role as STE for government Urea imports.

Key Entities Referenced

Urea: A nitrogen-containing chemical compound used in fertilizers, and subject of the import policy amendment. ITC HS 2017, Schedule I: Indian Trade Clarification based on Harmonized System of Coding, 2017, Schedule I, which defines import policies. Exim Code 31021000: The specific Exim code pertaining to Urea, which is the subject of the import policy condition amendment. Foreign Trade Policy, 2015-2020: The prevailing foreign trade policy, which is being amended by this notification. Foreign Trade Development and Regulation Act, 1992: The governing legislation providing the powers for the Central Government to amend trade policies. STC: State Trading Corporation, an agency involved in the import of Urea. MMTC: Minerals and Metals Trading Corporation, an agency involved in the import of Urea. Rashtriya Chemicals and Fertilizers (RCF): A Public Sector Undertaking designated as State Trading Enterprise (STE) for import of Urea on government account.
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