In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade Development and Regulation Act

## Report on Amendment to Export Policy of Items Under HS Code 1101 **1. Executive Summary:** This report analyzes an amendment to the Export Policy of items under HS Code 1101, specifically concerning wheat flour (Atta, Maida, Samolina, Rava etc.). The amendment, detailed in Notification No. 39/2015-2020 dated October 14, 2022, modifies Notification No. 30/2015-2020 dated 27.08.2022. The core purpose of the amendment is to allow the export of wheat flour against Advance Authorisation and by Export Oriented Units (EOUs) and units in Special Economic Zones (SEZs), provided the flour is produced from imported wheat and without using domestically procured wheat, subject to specific conditions. Key findings indicate a focus on controlling wheat flour exports while ensuring compliance with import regulations and preventing the utilization of domestic wheat for export purposes. **2. Introduction:** This report provides an informative analysis of the amendment to the Export Policy of items under HS Code 1101. It is based solely on the provided government policy text, Notification No. 39/2015-2020 dated October 14, 2022. The report aims to provide a comprehensive overview of the changes, their rationale, and potential impact on affected stakeholders. **3. Policy Overview:** * This report analyzes an *amendment* to the existing Notification No. 30/2015-2020 dated 27.08.2022 regarding the Export Policy. * **Core Objective(s):** Based on the text, the core objectives are to: * Allow limited export of wheat flour. * Ensure that exported wheat flour is produced exclusively from *imported* wheat. * Prevent the use of domestically sourced wheat in the production of wheat flour for export. * Establish specific conditions and procedures for these exports. **4. Background and Rationale:** This amendment likely addresses concerns related to domestic wheat availability and prices. The original policy presumably restricted or prohibited wheat flour exports more broadly. This amendment offers a conditional allowance, likely designed to: * Meet certain export demands while protecting domestic wheat supplies. * Ensure compliance with import regulations concerning wheat intended for flour production. * Potentially address issues encountered in implementing the original policy, necessitating a more targeted approach. **5. Key Provisions / Changes:** This section focuses specifically on the changes introduced by the amendment: * **Original Policy Change:** The amendment modifies Notification No. 30/2015-2020 dated 27.08.2022. The amendment changes the export policy of "Wheat or Meslin" under HS Code 1101. * **New Rule/Provision:** The key change is that "export of Wheat Flour (Atta, Maida, Samolina, Rava etc.) will be allowed against Advance Authorisation, and by Export Oriented Units (EOUs) and units in SEZs." However, this allowance is conditional. * **Difference/Effect:** The original policy (before this amendment) likely prohibited or heavily restricted wheat flour exports. This amendment now *permits* specific entities (those with Advance Authorisation, EOUs, and SEZs) to export wheat flour *under strict conditions*: * The wheat flour *must* be produced from imported wheat. * Domestic wheat cannot be used to produce flour for export under this provision. * Export Oriented Units (EOUs) and units in the SEZ will be subject to pre-import of wheat condition. * There is a timeframe (180 days from import) for exporting the resultant wheat flour. * Restrictions on the transfer of imported raw materials. * Specific requirements for documentation (Bill of Entry) at the time of export. * Entire production is to be exported with no remnants retained. **6. Target Audience and Stakeholders:** The primary stakeholders directly affected by this amendment are: * **Exporters of wheat flour:** Specifically, those seeking to export Atta, Maida, Samolina, and Rava. * **Entities with Advance Authorisation:** These entities can now export wheat flour under the specified conditions. * **Export Oriented Units (EOUs) and units in SEZs:** These units are also permitted to export wheat flour, subject to the pre-import condition. * **Customs Authorities:** Responsible for verifying compliance with import and export regulations, specifically the Bill of Entry requirements for imported wheat. **7. Implementation Aspects (Inferred):** * **Responsible Agencies:** * **Directorate General of Foreign Trade (DGFT):** Responsible for issuing and overseeing the implementation of the Export Policy. * **Customs Authorities:** Responsible for verifying the origin of wheat used in flour production at the time of export, ensuring compliance with the Bill of Entry requirements. * **Timelines/Procedures:** * Wheat Flour must be exported within 180 days from the date of import of wheat. * The Bill of Entry for imported wheat must be presented to Customs Authorities for verification before export is allowed. * Procedural conditions to be followed by Advance Authorisation holders will be provided in the Handbook of Procedures. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this amendment are: * **Controlled Wheat Flour Exports:** Allowing exports under specific conditions enables the government to manage export volumes based on domestic wheat availability. * **Compliance with Import Regulations:** Ensuring that exported flour is made from imported wheat enforces import restrictions and prevents the diversion of imported wheat to the domestic market. * **Support for Export-Oriented Units:** The amendment provides an opportunity for EOUs and SEZs to participate in wheat flour exports, potentially boosting their economic activity. * **Preventing Domestic Wheat Use:** By prohibiting the use of domestic wheat for export production, the policy aims to protect domestic wheat supplies and potentially stabilize domestic prices. **9. Conclusion:** The amendment to the Export Policy of items under HS Code 1101 represents a targeted approach to managing wheat flour exports. By allowing exports under Advance Authorisation and by EOUs/SEZs, contingent on the use of imported wheat and adherence to specific conditions, the government aims to balance export opportunities with the need to protect domestic wheat supplies and ensure compliance with import regulations. The success of this amendment will depend on effective implementation and oversight by the relevant agencies, particularly the Customs Authorities.

Key Entities Referenced