In exercise of powers conferred under paragraph 2.04 of the Foreign Trade Policy,

## Policy Analysis Report: Amendment to Foreign Trade Policy 2015-2020 (Appendix 2T) **1. Executive Summary:** This report analyzes a public notice issued by the Directorate General of Foreign Trade (DGFT) on June 14, 2021, amending Appendix 2T of the Foreign Trade Policy 2015-2020. The amendment primarily concerns the assignment of authority for issuing Registration-Cum-Membership Certificates (RCMCs) for specific cashew-related products. The key finding is the transfer of authority for issuing RCMCs for cashew kernels, cashewnut shell liquid, and Kardanol from the Cashew Export Promotion Council of India to the Agricultural and Processed Food Products Export Development Authority (APEDA). This change is designed to streamline the certification process for these products. **2. Introduction:** This report provides an informative overview and analysis of the public notice regarding the amendment to Appendix 2T of the Foreign Trade Policy 2015-2020, specifically focusing on the changes related to the issuance of RCMCs for cashew-related products. The analysis is based solely on the information provided in the official public notice. **3. Policy Overview:** * **Amendment to:** Foreign Trade Policy 2015-2020. * **Core Objective(s):** Based on the text, the core objective of *this amendment* is to modify and re-assign responsibility for the issuance and renewal of RCMCs to promote and regulate exports of Cashew Kernels, Cashewnut Shell Liquid and Kardanol. **4. Background and Rationale:** The amendment seems designed to address potential inefficiencies or perceived overlaps in the regulatory oversight of cashew product exports. The shift in RCMC issuance authority from the Cashew Export Promotion Council of India to APEDA suggests a move towards consolidation or streamlining of certification processes. The text doesn't explicitly state the reason, but this reassignment could be intended to enhance efficiency, reduce redundancy, or align the certification process with a broader regulatory framework under APEDA. **5. Key Provisions / Changes:** This public notice introduces the following key changes: * **Specific Part of Original Policy Changed:** Appendix 2T of the Foreign Trade Policy 2015-2020 is amended. This Appendix lists the Export Promotion Councils and Commodity Boards along with the product details falling within their jurisdiction. * **New Rule/Provision:** APEDA is now designated as the authorized agency to issue and renew RCMCs for Cashew Kernels, Cashewnut Shell Liquid, and Kardanol, with immediate effect. * **Difference/Effect of Change:** The Cashew Export Promotion Council of India's power to issue/renew RCMCs for these specific products is suspended. This means exporters of these cashew products will now need to obtain RCMCs from APEDA instead of the Cashew Export Promotion Council of India. This shift centralizes the RCMC process for these items under APEDA. RCMCs previously issued by the Cashew Export Promotion Council of India remain valid for their existing validity period. **6. Target Audience and Stakeholders:** The direct target audience and stakeholders affected by this amendment are: * Exporters of Cashew Kernels, Cashewnut Shell Liquid, and Kardanol. * The Cashew Export Promotion Council of India (due to the suspension of their RCMC issuance authority for specific products). * The Agricultural and Processed Food Products Export Development Authority (APEDA), which gains additional responsibility for RCMC issuance. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Directorate General of Foreign Trade (DGFT) issued the public notice. APEDA is now the responsible agency for issuing RCMCs for the specified cashew products. The Cashew Export Promotion Council of India's role is diminished in this particular aspect. * **Timelines/Procedures:** The change is effective immediately (as of June 14, 2021). The public notice does not detail the specific procedures exporters must follow to obtain RCMCs from APEDA. * **Specific to Changes:** Exporters must transition to obtaining RCMCs from APEDA for Cashew Kernels, Cashewnut Shell Liquid, and Kardanol. RCMCs issued by the Cashew Export Promotion Council of India are still valid during their validity period. New applications or renewals will go through APEDA. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these changes is: * Streamlined RCMC issuance for cashew products by consolidating the process under APEDA. * Potentially improved efficiency and reduced administrative burden for exporters. * The impact of the amendment depends on how smoothly APEDA assumes the new responsibilities. The effectiveness will be determined by the clarity of new procedures and the speed of RCMC processing under APEDA. **9. Conclusion:** The amendment to Appendix 2T of the Foreign Trade Policy 2015-2020, as detailed in the public notice, represents a significant change in the regulatory landscape for cashew product exports. The transfer of RCMC issuance authority from the Cashew Export Promotion Council of India to APEDA is a strategic move potentially aimed at streamlining processes and enhancing efficiency. Affected stakeholders, particularly exporters of Cashew Kernels, Cashewnut Shell Liquid, and Kardanol, should familiarize themselves with APEDA's RCMC application procedures to ensure compliance and minimize disruption to their export activities. The DGFT public notice is the source of all information and should be referred to for complete understanding.

Key Entities Referenced