Inclusion of provisions in continuation to Public Notice No 10 2015 20 dated 24.05.2022

## Report on Amendment to Foreign Trade Policy Regarding Crude Edible Oils **1. Executive Summary:** This report analyzes a recent amendment to the Foreign Trade Policy (FTP) 2015-2020, specifically Public Notice No. 10/2015-20 dated May 24, 2022. The amendment, issued by the Directorate General of Foreign Trade (DGFT) on June 14, 2022, concerns the allocation of Tariff Rate Quotas (TRQs) for crude soybean oil and crude sunflower oil. The key changes involve revised documentation requirements for processing units, mandatory submission of past turnover details, restrictions on exporting TRQ imports, clarification on TRQ validity periods, handling of import consignments at ports, and deduction of unutilized quantities from future allocations. These changes aim to refine the TRQ allocation process and ensure that imported crude edible oils are exclusively used for domestic processing and consumption. **2. Introduction:** The purpose of this report is to provide a detailed overview and analysis of the amendment to the Foreign Trade Policy (FTP) 2015-2020, specifically Public Notice No. 15/2015-20 dated June 14, 2022. This analysis is based solely on the information provided within the official government policy text. **3. Policy Overview:** * This document is an amendment to Public Notice No. 10/2015-20 dated May 24, 2022, regarding the allocation of Tariff Rate Quotas (TRQs) for crude soybean oil and crude sunflower oil. * **Core Objective(s):** The objective of the amendment, as inferred from the text, is to refine and strengthen the procedures for allocating and managing TRQs for crude edible oils to ensure domestic processing and consumption. **4. Background and Rationale:** The amendment likely aims to address perceived gaps or weaknesses in the existing TRQ allocation process. Specifically, the amendments suggest that there were concerns regarding: * Verification of processing capacity. * Tracking the actual usage of imported crude edible oils. * Potential misuse of TRQ imports, specifically potential exports. * Clarity on the validity period of TRQs. * Management of unutilized TRQ quantities. **5. Key Provisions / Changes:** The amendment introduces several key changes to the original Public Notice No. 10/2015-20 dated May 24, 2022: * **Revised Documentation for Processing Units:** Paragraph 2(iii) is revised. Applicants must provide a self-certified copy of documentary proof from Central/State authorities indicating their processing capacity. The certificate must be dated prior to May 24, 2022, and explicitly mention the processing capacity for edible oils. *Effect:* This change introduces stricter verification of processing capacity by requiring specific dated proof from authorities. * **Turnover Details for Crude Edible Oil Processing:** Paragraph 2, after Sl. No. vi, includes vii. Applicants are required to submit details of turnover for processing crude edible oils for the past three financial years (2019-20 to 2021-22). Self-certified GST returns are also required. *Effect:* This aims to ensure that TRQs are allocated to entities with a proven track record of processing crude edible oils, improving accountability. * **Restriction on Exporting TRQ Imports:** Paragraph 2, after Sl. No. vi, includes viii. Imports made under TRQ are exclusively for domestic processing and consumption. Exporting any part of the TRQ imports, either before or after processing, is prohibited. *Effect:* This explicitly prohibits the re-export of imported crude edible oils, ensuring they are used solely for domestic needs. * **Validity Period of TRQs:** Paragraph 2, after Sl. No. vi, includes ix. TRQs issued for FY 2022-23 are valid for import clearance for one year or until June 30, 2023, whichever is earlier. TRQs for FY 2023-24 are valid until March 31, 2024. *Effect:* This clarifies the expiration dates of the TRQs for the financial years 2022-23 and 2023-24, promoting timely utilization. * **Import Consignments at Ports:** Paragraph 2, after Sl. No. vi, includes x. Only import consignments landing at Indian ports *after* the date of TRQ issuance will be considered for clearance under TRQ. Quantities already at ports or in warehousing *before* the TRQ issuance date will *not* be eligible. *Effect:* This prevents retroactive use of TRQs for existing stock, ensuring TRQs are used for new import activities only. * **Deduction of Unutilized Quantities:** Paragraph 2, after Sl. No. vi, includes xi. Unutilized TRQ quantities by the end of the current import period will be deducted from proposed allocations in the next TRQ period (2023-24), if allocation is considered. *Effect:* This incentivizes TRQ holders to fully utilize their allocated quotas by penalizing underutilization, promoting efficiency in the system. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders affected by these amendments are: * Entities involved in the import and processing of crude soybean oil and crude sunflower oil. * Central and State authorities responsible for issuing processing capacity certificates. * Customs officials responsible for clearing import consignments. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Directorate General of Foreign Trade (DGFT) is the responsible agency for implementing and overseeing these changes. * **Timelines and Procedures:** * Applicants need to submit documentary proof of processing capacity dated prior to May 24, 2022. * Turnover details for the past three financial years and self-certified GST returns must be provided. * TRQs issued for FY 2022-23 have specific validity periods (one year or until June 30, 2023, whichever is earlier). * TRQs issued for FY 2023-24 are valid until March 31, 2024. * Customs clearance will only be granted for consignments arriving after the TRQ issuance date. * Unutilized quantities will be deducted from future allocations. **8. Expected Outcomes / Impact of Changes:** The expected outcomes of these changes are: * Improved verification of the processing capacity of TRQ recipients. * Enhanced tracking of imported crude edible oil usage and preventing misuse. * Ensuring that TRQ imports are exclusively used for domestic processing and consumption, benefiting domestic consumers. * Increased efficiency in the TRQ allocation and utilization process. * Better management of TRQ quantities and reduced underutilization. **9. Conclusion:** The amendment to the Foreign Trade Policy concerning TRQs for crude soybean and sunflower oil represents a targeted effort to improve the administration and effectiveness of the TRQ system. By introducing stricter documentation requirements, mandating turnover reporting, prohibiting re-exports, clarifying TRQ validity, and penalizing underutilization, the DGFT aims to ensure that the TRQs are used efficiently and effectively to meet domestic demand for edible oils. These changes should lead to a more transparent and accountable system, benefiting both domestic processors and consumers.

Key Entities Referenced