Executive Summary:
This notification amends the export policy for Basmati rice under the Foreign Trade Policy 2015-2020, specifically concerning item number 57 in Chapter 10 of Schedule 2 of ITC (HS) classification. It outlines conditions for export, including quality standards, permitted export routes, and registration requirements. A key provision regarding Documents against Acceptance (DA) comes into effect on October 1, 2016.
Key Points / Main Content:
* **Export Policy Amendment:**
* Replaces the existing entry for Basmati rice in the ITC (HS) classification.
* Basmati rice exports are generally "Free" but subject to specific conditions.
* **Quality and Specifications:**
* Rice grain length must exceed 6.61 mm, and the length-to-breadth ratio must be greater than 3.5.
* **Export Routes and Registration:**
* Exports are permitted through Custom EDI ports and, with quantity registration with DGFT, through non-EDI Land Custom Stations (LCS) on the Indo-Bangladesh and Indo-Nepal border.
* **Destination-Specific Rules:**
* Exports to the European Union require pre-shipment quality inspection.
* Exports to the Russian Federation require pre-shipment quality certification from specified laboratories.
* **Restrictions:**
* Export of empty printed gunny bags indicating the product as Indian Basmati Rice is generally prohibited, except when accompanying Basmati rice consignments (limited to 2% of filled bags).
* For bulk exports or bags of 50 kg or more, empty printed gunny bags are permitted to the extent of actual requirements.
* **Payment Terms (Effective October 1, 2016):**
* Export of Basmati Rice shall not be permitted on the basis of Documents against Acceptance (DA) unless such export is covered either by Bank Guarantee or ECGC Guarantee.
* **Effect of the Notification:**
* Basmati rice export is now permitted through specific Land Custom Stations subject to quantity registration with DGFT.
Impact Analysis:
Stakeholder: Exporters of Basmati Rice
* Impact: New regulations on quality, permitted export routes, documentation, and payment terms affect export operations.
* Action Required: Ensure compliance with quality standards, register quantities with DGFT for exports via Land Custom Stations, and comply with the new rules regarding Documents against Acceptance (DA) from October 1, 2016, by securing Bank Guarantee or ECGC Guarantee.
Stakeholder: Directorate General of Foreign Trade (DGFT)
* Impact: Increased responsibility for quantity registration for exports via Land Custom Stations.
* Action Required: Implement procedures for quantity registration and notify Regional Authorities for designated registration purposes.
Stakeholder: APEDA, New Delhi
* Impact: Continued role in registration of contracts.
* Action Required: Maintain the registration process for Basmati rice export contracts.
Stakeholder: Customs Authorities
* Impact: Enforcement of new export conditions, including permitted routes and documentation requirements.
* Action Required: Ensure exports comply with the specified routes and documentation, including guarantees for DA payments after October 1, 2016.
Key Entities Referenced
Foreign Trade Policy, 2015-2020: A policy document referenced as the basis for the amendment regarding basmati rice export conditions.
Foreign Trade Development and Regulation Act, 1992: An act of the Indian Parliament that provides the central government with powers to regulate foreign trade.
ITC HS: Indian Trade Classification (Harmonized System) - Used for classifying export and import items. Schedule 2 and Chapter 10 are specifically mentioned in relation to Basmati Rice.
Basmati Rice: The primary subject of the notification, concerning export conditions and amendments to regulations.
APEDA, New Delhi: Agricultural and Processed Food Products Export Development Authority, the agency with which contracts must be registered for Basmati Rice exports.
DGFT: Directorate General of Foreign Trade, the agency responsible for quantity registration related to exports through specific land custom stations.
Indo-Bangladesh border: One of the borders where export of Basmati Rice is permitted through Land Custom Stations LCS subject to registration of quantity with DGFT.
Indo-Nepal border: One of the borders where export of Basmati Rice is permitted through Land Custom Stations LCS subject to registration of quantity with DGFT.