Date: 2022-10-31Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by sub section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest
## Policy Analysis Report: Customs Duty Exemption on Rice Exports (Notification No. 55/2022-Customs)
**1. Executive Summary:**
This report analyzes Notification No. 55/2022-Customs, issued by the Ministry of Finance, Department of Revenue, on October 31, 2022. This notification establishes a customs duty exemption on the export of specific types of rice. The core purpose is to exempt certain rice exports from customs duty, potentially to promote exports. Key provisions include nil duty rates for rice in husk, husked brown rice, semimilled/whollymilled rice (excluding parboiled and Basmati), and organic non-Basmati rice, subject to specific conditions regarding destination, timing, and certification.
**2. Introduction:**
This report provides an overview and analysis of Notification No. 55/2022-Customs, issued by the Ministry of Finance, Department of Revenue, specifically focusing on its provisions regarding customs duty exemptions for exported rice, based solely on the text provided.
**3. Policy Overview:**
This is a *new policy* establishing customs duty exemptions.
* **Core Objective(s):** The core objective, as inferred from the text, is to exempt specific categories of rice exports from customs duty. The stated rationale in the notification is that this exemption is "necessary in the public interest."
**4. Background and Rationale:**
This is a *new policy*.
* **Likely Problem/Issue Addressed:** While the text doesn't explicitly state the problem, the implementation of a customs duty exemption suggests a desire to promote rice exports. This could be in response to factors such as: surplus rice production, declining global demand for specific types of Indian rice (excluding Basmati and Parboiled), or a need to support the agricultural sector. The reference to "public interest" implies the government believes boosting rice exports would be beneficial for the nation's economy.
**5. Key Provisions:**
This is a *new policy*. The key components and requirements established by this notification are:
* **Duty Exemption:** The policy exempts specified rice types from customs duty beyond a "nil" rate. This means no duty is payable on these exports.
* **Specific Rice Types:** The exemption applies to:
* Rice in the husk (paddy or rough) (Tariff Item 1006 10)
* Husked brown rice (Tariff Item 1006 20)
* Semimilled or whollymilled rice, whether or not polished or glazed, *other than* Parboiled rice and Basmati rice (Tariff Item 1006 30 90)
* Organic Non-Basmati Rice (Tariff Item 1006 4)
* **Conditions:** The duty exemption is subject to specific conditions, as detailed in the Annexure:
* **Condition 1:** Rice exported to Nepal through specific customs stations (Raxaul, Jogbani, Sonauli) is eligible, up to a total aggregate quantity of six lakh metric tonnes.
* **Condition 2 & 3:** Rice that entered a customs station before September 9, 2022, for exportation *but hadn't received clearance*, and is backed by irrevocable Letters of Credit opened before September 9, 2022, with supporting swift date evidence, is eligible. The letters of credit must also be authenticated by the Recipient Bank.
* **Condition 4:** Organic Non-Basmati rice exports require a Provisional Transaction Certificate or Transaction Certificate from a Certification Body accredited by the National Accreditation Body (NAB) for Organic Products, as per Directorate General of Foreign Trade Public Notice No. 73 RE201320092014.
**6. Target Audience and Stakeholders:**
Based on the text, the primary target audience and stakeholders are:
* **Rice Exporters:** Particularly those exporting rice types covered by the exemption.
* **Rice Farmers:** As the exemption is likely intended to boost demand.
* **Banks:** Particularly those involved in issuing and authenticating Letters of Credit for rice exports.
* **Customs Officials:** Responsible for implementing and enforcing the policy.
* **Certification Bodies:** Accredited by NAB for Organic Products.
* **Importers in Nepal:** Specifically, those importing rice from India through the specified border crossings.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Ministry of Finance (Department of Revenue) is responsible for issuing the notification. Customs officials are responsible for implementing the policy at the ports of export. The Directorate General of Foreign Trade and NAB-accredited Certification Bodies also play a role in verifying compliance for organic rice exports.
* **Timelines/Procedures:**
* The notification came into force on November 1, 2022.
* Condition 2 & 3 include a specific date (September 9, 2022) related to letters of credit establishment and goods entry to customs.
* For organic rice, exporters need to obtain a certificate from an accredited Certification Body.
**8. Expected Outcomes / Impact of Changes:**
This is a *new policy*.
* **Likely Intended Outcomes:** The primary intended outcome is likely to be increased rice exports, especially for the specific types covered by the exemption. This could lead to:
* Increased revenue for rice exporters.
* Greater demand for Indian rice in international markets.
* Support for Indian rice farmers through potentially higher prices.
* Increased trade with Nepal, specifically through designated border crossings.
**9. Conclusion:**
Notification No. 55/2022-Customs provides a significant customs duty exemption for specific categories of rice exports, aiming to boost exports and support the agricultural sector. The policy's effectiveness will depend on the responsiveness of the international market, the capacity of exporters to meet the specified conditions, and the overall global trade environment for rice. Understanding these nuances is crucial for stakeholders to leverage the benefits offered by this notification.
Key Entities Referenced
Customs Act, 1962: A legal act, specifically section 25, subsection 1, which grants powers related to exemptions on goods.
Central Government: The governing authority responsible for issuing the notification regarding customs exemptions.
Customs Tariff Act, 1975: A legal act pertaining to tariffs on goods.
India: The country from which goods are being exported.
Nepal: The country to which goods are being exported, specifically through designated customs stations.
Raxaul: A customs station located in India through which goods are exported to Nepal.
Jogbani: A customs station located in India through which goods are exported to Nepal.
Sonauli: A customs station located in India through which goods are exported to Nepal.
Department of Commerce: The department responsible for the National Programme for Organic Production.
Directorate General of Foreign Trade: An organization that issued Public Notice No. 73 RE201320092014, dated the 18th November, 2014, related to organic product certification.
National Accreditation Body NAB for Organic Products: An accreditation body under the National Programme for Organic Production of the Department of Commerce.
New Delhi: Location of Ministry of Finance and the origin of the notification.
Ministry of Finance: The ministry that issued the notification, specifically the Department of Revenue.
Rice: Goods that are being discussed in this notification
Basmati rice: Type of Rice mentioned in the notification
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-31102022-239956
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CG-DL-E-31102022-239956
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 709] नई ददल्ली, सगमिार, अक्त बू र 31, 2022/कार्ततक 9, 1944
No. 709] NEW DELHI, MONDAY, OCTOBER 31, 2022/KARTIKA 9, 1944
जित्त म्ं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई ददल् ली, 31 अक्त ूबर, 2022
स.ं 55/2022- सीमा िल्ु क
सा.का.जन. 796(अ).—सीमा िुल्क अजधजनयम, 1962 (1962 का 52) की धारा 25 की उप-धारा (1) के तहत
प्रदत् त िजतियय का प्रयगग करते ुए, केन्द र सरकार, इस बात से संतुष्ट हगते ुए दक ऐसा करना िनजहत में आिश्यक है,
एतदद्वारा, नीचे दी गई सारणी के कॉलम (3) म ें उजल्लजखत िस्ट् तुओं, िग दक उक्त सारणी के कॉलम (2) म ें जिजनर्ददष् ट सीमा
िुल्क टैररफ अजधजनयम, 1975 (1975 का 51) की दसू री अनसु ूची के अध् याय, िीर्षक, उप िीर्षक या टैररफ मद के अंतगषत
आती ह,ैं कग, िब भारत स े उनका जनयाषत दकया गया हग, उन पर सीमा िुल् क टैररफ अजधजनयम, 1975 (1975 का 51) की
उक्त दसू री अनुसूची के अंतगषत लगाए िाने िाल े सीमा िुल् क से उस हद तक ूूट दते ी ह ै जिस हद तक िह उक्त सारणी के
कॉलम (4) की तत्स ंबंधी प्रजिजष्ट म ें जिजनर्ददष् ट िल्ु क की दर स े संगजणत राजि स े अजधक हगती हग, उन ित ष (ितों) के अधीन
िग इस अजधसूचना के अनुबंध में जनर्ददष्ट ह,ै जिसकी ितष संख्या (संख्याओं) का उल्लेख उतिय सारणी के कॉलम (5) में संबंजधत
प्रजिजष्ट में दकया गया ह,ै अथाषत्: -
सारणी
क्र. स.ं अध्य ाय या िीर्कष या उप- िस्ट्त ओंु का जििरण िल्ु क की दर ित षसख्ं या
िीर्कष या टैररफ मद (सख्ं याओं)
(1) (2) (3) (4) (5)
1. 1006 10 भूसी में चािल (धान या खुरदरु ा) िून्दय 1
2. 1006 20 भूसी (भूरा) चािल िून्दय 2 तथा 3
7248 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
3. 1006 30 90 अर्द् ष जमल्ड या पणू ष जमल्ड चािल, िून्दय 2 तथा 3
पॉजलिड या ग्लेज़्ड हग या नहीं
(पारबॉयल्ड चािल और बासमती
चािल के अलािा)
4. 1006 िैजिक नॉन-बासमती चािल िून्दय 4
अनबु धं
ित ष ित ष(ितों)
सख्ं या
1. जिस ददन स े यह अजधसूचना लग ू हगगी, तब स,े रक्सौल या िगगबनी या सगनौली म ें जस्ट्थत सीमा िुल्क स्ट्टेिन
के माध्यम स े नेपाल कग जनयाषत दकय े िाने िाला माल, िहााँ उतिय तीन स्ट्टेिन के माध्यम स े जनयाषत िाने िाला
माल सारे माल की कुल मा्ा 6 लाख मीररक टन स े अजधक न हग ।
2. जनयाषत के जलए माल 9 जसतंबर, 2022, से पहले जनयाषत के उद्देश्य स े सीमा िुल्क स्ट्टेिन म ें प्रिेि कर गया हग,
और उजचत अजधकारी द्वारा जनयाषत की मंिूरी की अनुमजत देन े का आदिे िारी नहीं दकया गया हग ।
3. (i) जनयाषत के जलए अजभप्रेत माल इररेिगकबल लेटर ऑफ़ क्रेजडट द्वारा समर्तथत हग, िहााँ पर उतिय लेटर ऑफ़
क्रेजडट कग 9 जसतंबर, 2022 से पहले खगला गया हग, और भारतीय और जिदेिी बैंक के बीच संदेि जिजनमय
की तारीख/ जस्ट्िफ्ट तारीख 9 जसतंबर, 2022 से पहल ेकी हग ।
(ii) उतिय लेटर ऑफ़ क्रेजडट प्राप् तकता ष बैंक द्वारा प्रमाजणत हग ।
4. जनयाषत के जलए अजभप्रेत िस्ट्तओंु कग केिल तभी जनयाषत करने की अनुमजत दी िाएगी िब उनके साथ ऐसी
सर्टटदफकेिन संस्ट्था के द्वारा िारी दकया गया प्रगजििनल रांसक्िन सर्टटदफकेट/ रांसक्िन सर्टटदफकेट हग जिसे
जडपाटषमेंट ऑफ़ कॉमसष के नेिनल प्रगग्राम फॉर आगेजनक प्रगडक्िन के अंतगषत आने िाल े निे नल एकक्रेडीटेिन
बॉडी (एन.ए.बी.) फॉर आगेजनक प्रगडक््स के द्वारा मान्दयता प्राप्त हग, िैसा की डायरेक्टरेट िनरल ऑफ़ फॉरेन
रेड के पजललक नगरटस नंबर 73 (RE-2013)/2009-2014, ददनांक 18 निंबर, 2014, में उल्लेजखत ह ै ।
2. यह अजधसूचना 1 निंबर, 2022 से लागू हगगी ।
[फा. स.ं सीबीआईसी -190354/242/2022-टीओ(टीआरय-ू I)]
अम्रीता टाइटस, उप सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 31st October, 2022
No. 55/2022-Customs
G.S.R. 796(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the
public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table
below, falling within the Chapter, heading, sub–heading or tariff item of the Second Schedule to the
Customs Tariff Act, 1975 (51 of 1975), specified in the corresponding entry in column (2) of the said
Table, when exported out of India, from so much of the duty of customs leviable thereon under the said
Second Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in
column (4) of the said Table, subject to any of the condition(s), specified in the Annexure to this
notification, the condition number(s) of which is mentioned in the corresponding entry in column (5) of
the said Table, namely: –[भाग II—खण् ड 3(i)] भारत का रािप् : असाधारण 3
TABLE
Sl. Chapter or heading Description of goods Rate of Condition
No. or sub-heading or duty number(s)
tariff item
(1) (2) (3) (4) (5)
1. 1006 10 Rice in the husk (paddy or rough) Nil 1
2. 1006 20 Husked (brown) rice Nil 2 and 3
3. 1006 30 90 Semi-milled or wholly-milled Nil 2 and 3
rice, whether or not polished or glazed
(other than Parboiled rice and Basmati
rice)
4. 1006 Organic Non-Basmati Rice Nil 4
Annexure
Condition Condition(s)
number
1. Goods meant for export to Nepal, when exported through the customs station located at
Raxaul or Jogbani or Sonauli, upto an aggregate quantity not exceeding six lakh metric
tonnes of total exports of such goods through the said stations, taken together, from the date
on which this notification enters into force.
2. Goods meant for export shall have entered the customs station for the purpose of
exportation before the 9th day of September, 2022, and an order permitting clearance has
not been issued by the proper officer.
3. (i) Goods meant for export shall be backed by irrevocable Letter(s) of Credit, wherein the
said letter(s) of credit has been opened before the 9th day of September, 2022, and the
message exchange date between the Indian and Foreign bank/swift date should be
before the 9th day of September, 2022.
(ii) Such Letter(s) of Credit should have been authenticated by the Recipient Bank.
4. Goods meant for export shall be allowed to be exported only when accompanied by a
Provisional Transaction Certificate/ Transaction Certificate issued by a Certification Body
accredited by National Accreditation Body (NAB) for Organic Products under the National
Programme for Organic Production of the Department of Commerce, as mentioned in the
Directorate General of Foreign Trade Public Notice No. 73 (RE-2013)/2009-2014, dated
the 18th November, 2014.
2. This notification shall come into force on the 1st day of November, 2022.
[F. No. CBIC-190354/242/2022-TO(TRU-I)]
AMREETA TITUS, Dy. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.