Date: 2015-10-07Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 of the Foreign Trade Policy
Executive Summary:
This notification, issued by the Ministry of Commerce and Industry, amends the export policy of rice with immediate effect. It modifies Chapter 10 of Schedule 2 of ITC HS Classification of Export Import Items, specifically regarding the export of rice and moves rice of seed quality from "Free" to "Restricted" category.
Key Points / Main Content:
Amendments to Export Policy:
* The existing entries against Sl. No. 55, 56 & 58 of Chapter 10 of Schedule 2 of ITC HS Classification of Export Import Items are replaced as detailed in the notification.
Export of Non-Basmati Rice (Sl. No. 55):
* Export is permitted by private parties from privately held stocks.
* State Trading Enterprises (STEs), including Ms. NCCF & NAFED, are also permitted to export privately held stocks.
* Export must be through Custom EDI ports but is also permitted through non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal borders, subject to quantity registration with DGFT.
* RAs Kolkata, Patna, and other RAs notified by DGFT will be the designated RAs for quantity registration.
Export of Rice of Seed Quality (Sl. No. 56):
* Export is restricted and permitted only under license, with the following conditions:
* Submission of a seed dealer license issued under Section 3 of the Seed Control Order 1983.
* A declaration that the seeds have been chemically treated and are unfit for human consumption.
* Export packets must be labeled indicating treatment with chemical insecticides and unsuitability for food or feed purposes.
Export of Other Rice in Husk (Sl. No. 58):
* Export is restricted and permitted only under license.
Effect of the Notification:
* Export of rice of seed quality has been moved from "Free" to "Restricted" category.
Impact Analysis:
Exporters of Rice:
* Impact: Stricter regulations on seed quality rice exports, requiring licenses and adherence to specific conditions.
* Action Required: Obtain necessary licenses, comply with labeling requirements, and ensure proper documentation for customs submission.
State Trading Enterprises (STEs):
* Impact: Continued permission to export non-Basmati rice from privately held stocks, but with registration requirements for exports via non-EDI Land Custom Stations.
* Action Required: Register quantities with DGFT for exports through specified land border crossings.
Customs Authorities:
* Impact: Increased responsibility in verifying documentation and ensuring compliance with the new regulations for rice exports, particularly seed quality rice.
* Action Required: Enforce new regulations, verify licenses and declarations, and ensure proper labeling of export packets.
Regional Authorities (RAs):
* Impact: Designated RAs (Kolkata, Patna, and others notified by DGFT) will handle quantity registration for exports through non-EDI Land Custom Stations.
* Action Required: Prepare for and manage the registration process for exporters using specified land border crossings.
Key Entities Referenced
Foreign Trade Policy 2015-2020: A policy document referenced in the notification related to amendments in export regulations.
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that empowers the Central Government to make provisions for the development and regulation of foreign trade.
ITC HS Classification of Export Import Items: Indian Trade Clarification based on Harmonized System of Coding. It is a system for classifying goods for import and export.
Central Government: The executive authority responsible for making amendments to export policies related to rice.
Directorate General of Foreign Trade (DGFT): The government agency responsible for implementing the Foreign Trade Policy and regulating export-import activities.
Customs EDI Ports: Ports that use Electronic Data Interchange (EDI) for customs clearance, facilitating the export of goods.
Indo-Bangladesh border: The international border between India and Bangladesh, where export is permitted through non-EDI Land Custom Stations.
Indo-Nepal border: The international border between India and Nepal, where export is permitted through non-EDI Land Custom Stations.