Date: 2015-08-06Category: Extra OrdinaryState: Union GovernmentCountry: India
The 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, 2015-20.
Executive Summary:
This notification, effective August 6, 2015, amends the export policy of edible oils. It modifies previous notifications regarding the prohibition of edible oil exports, extends the prohibition until further notice, and provides specific exemptions. The notification also removes the quantity ceiling on the export of organic edible oils.
Key Points / Main Content:
* **Amendments and Extensions:**
* Notification No. 22RE2013-200914 dated 18.06.2013, related to the ITCHS classification of export-import items, is amended.
* The prohibition on edible oil exports, initially effective from 17.03.2008, has been extended until further orders (Notification No. 24RE2012-200914 dated 19th October 2012).
* **Exemptions from Export Prohibition:**
* Castor oil exports are exempt.
* Coconut oil exports via specified Land Custom Stations (LCS) on Indo-Nepal, Indo-Bangladesh, Indo-Bhutan, and Indo-Pakistan borders are exempt.
* Deemed exports of edible oils from Domestic Tariff Area (DTA) to 100% Export Oriented Units (EOUs) as raw material for non-edible goods production are exempt.
* Edible oils from DTA to Special Economic Zones (SEZs) for processed food manufacturing, subject to value addition norms, are exempt.
* Edible oils produced from minor forest produce under specific ITCHS codes (15159010, 15159020, 15159030, 15159040, 15179010, and 15219020) are exempt.
* Organic edible oils, registered and certified by the Agricultural Processed Food Products Export Development Authority (APEDA) under export contracts, are exempt.
* Rice Bran oil in bulk is exempt.
* **Specific Permissions and Conditions:**
* Exports of edible oils in branded consumer packs up to 5 Kgs are permitted with a minimum export price of USD 900 per MT.
* Peanut Butter (ITC HS Code 15179020) exports are not subject to the prohibition.
* **Effect of the Notification:**
* Export of Rice Bran oil in bulk is exempted from the prohibition.
* The quantity ceiling on the export of organic edible oils has been removed.
Impact Analysis:
* **Edible Oil Manufacturers and Exporters:**
* Impact: Benefit from the exemptions, especially for castor oil, coconut oil, organic oils, and rice bran oil. They can also export consumer packs under specified conditions.
* Action Required: Review product portfolio to identify oils that qualify for exemptions. Ensure compliance with minimum export price for consumer packs. Register and certify organic oils with APEDA if applicable.
* **EOUs and SEZ Units:**
* Impact: EOUs can source edible oils from DTA as raw material for export production. SEZ units can use edible oils for processed food manufacturing.
* Action Required: Comply with value addition norms for SEZ manufacturing. Ensure proper documentation for deemed exports.
* **Customs Authorities:**
* Impact: Need to enforce the new regulations and exemptions at ports and land customs stations.
* Action Required: Update customs procedures to reflect the changes. Ensure proper verification of exports claiming exemptions.
* **APEDA:**
* Impact: Continued role in registering and certifying organic edible oils for export.
* Action Required: Maintain a registry of certified organic edible oil exporters.
Key Entities Referenced
Foreign Trade Development and Regulation Act, 1992: A law of India, referenced as the legal basis for the notification's amendments to export policy.
Foreign Trade Policy, 2015-2020: A policy document providing the framework for regulating foreign trade in India, within which the current notification operates.
Director General of Foreign Trade: The issuing authority for the notification, specifically Pravir Kumar, who is named as the Director General.
Edible Oils: The primary subject of the notification, concerning amendments to the export policy related to edible oils.
Domestic Tariff Area (DTA): A zone within India that is subject to the general tariff and trade regulations of the country.
Special Economic Zones (SEZs): Specifically designated areas within India that have different economic and trade laws than the rest of the country, intended to promote exports and investment.
Agricultural and Processed Food Products Export Development Authority (APEDA): An organization responsible for the export promotion of agricultural products, including the certification of organic edible oils.
Rice Bran Oil: A specific type of edible oil that is mentioned in the notification, particularly regarding exemptions from export restrictions.