Introduction: The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce & Industry, Government of India, has issued a crucial Trade Notice (No. 23/2023-DGFT) dated 18th August 2023, announcing an amendment to the export policy concerning Non-Basmati white rice (HS Code 1006 30 90). This notice impacts trade regulations and carries implications for exporters and stakeholders within the rice industry.
Analysis: The Trade Notice highlights a significant amendment to the export policy for Non-Basmati white rice. Previously categorized as ‘Free’ for export, this variety of rice is now designated as ‘Prohibited’ for export as per the Notification No. 20/2023 dated 20.07.2023. The Trade Notice addresses the transitional arrangement regarding the export of Non-Basmati rice and outlines specific conditions that allow for the continued exportation of consignments that were already in motion before the policy amendment.
The Trade Notice clarifies that consignments of Non-Basmati rice can be exported under three distinct conditions:
- Loading of rice on the ship has commenced before the notification date.
- Shipping bills have been filed, and vessels are already berthed or anchored before the notification date.
- Non-Basmati rice consignments were handed over to Customs/custodian or entered the Customs station for exportation before the notification date and are registered in their systems with evidence.
Furthermore, the Trade Notice addresses a query that arose regarding the interdependence of the three conditions. It explicitly states that these conditions are independent of each other. Exporters need to fulfill any one of these conditions to continue exporting Non-Basmati white rice.
Conclusion: The recent Trade Notice (No. 23/2023-DGFT) serves as a vital communication from the Directorate General of Foreign Trade (DGFT) regarding the amendment of the export policy for Non-Basmati white rice. With a shift from ‘Free’ to ‘Prohibited’ status, exporters and stakeholders need to adapt to this new policy landscape. The detailed conditions specified in the notice provide a structured framework for exporters to follow, ensuring compliance and a smooth transition.
The DGFT’s efforts to address stakeholder concerns and provide clarity regarding the conditions for continued export demonstrate its commitment to maintaining transparent and efficient trade practices. This amendment underlines the government’s focus on managing trade dynamics while safeguarding the interests of various stakeholders involved in the Non-Basmati white rice industry.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Trade Notice No. 23/2023-DGFT | Dated: 18th August, 2023
To
1. All Regional Authorities of DGFT
2. All Customs Commissionerate
3. Members of Trade
Subject: Amendment of export policy of Non-basmati white rice (HS Code 1006 30 90).
Export Policy of Non-basmati white rice (Semi-milled or wholly milled rice, whether or not polished or glazed: Other) under HS code 1006 30 90 has been amended from ‘Free’ to ‘Prohibited’ vide Notification No. 20/2023 dated 20.07.2023.
2. The provisions as under Para 1.05 of the Foreign Trade Policy (FTP), 2023 regarding transitional arrangement was not made applicable however, consignments of Non-basmati rice was allowed to be exported under following conditions:
i. where loading of Non-basmati rice on the ship has commenced before this Notification;
ii. where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports and their rotation number has been allocated before this Notification; The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of Non-basmati rice prior to the Notification;
iii. where Non-basmati rice consignment has been handed over to the Customs/custodian before this Notification and is registered in their systems/ where Non-basmati rice consignment has entered the Customs station for exportation before this Notification and is registered in the electronic systems of the concerned Custodian of the Customs station with verifiable evidence of date and time stamping of these commodities having entered the Customs Station prior to 20.07.2023. The period of export shall be up to 31.08.2023.
3. This Directorate has received various representations from stakeholders including Customs Authorities seeking clarification with regard to condition (i), (ii) & (iii) of Para- 2 of Notification dt. 20.07.2023 that whether all the three conditions are independent of each other or exporter has to fulfil all the conditions together.
4. In this regard, it is clarified that condition (i), (ii) & (iii) of Para- 2 of Notification dt. 20.07.2023 are independent of each other and export is allowed in case of completion of any one of the conditions of Para-2 of Notification dt. 20.07.2023, by the exporter.
This issues with the approval of competent authority.
(S.K. Mohapatra)
Joint Director General of Foreign Trade
E-mail: mohapatra.sk@nic.in
(Issued from F. No. 01/91/171/35/AM20/E-file/Part-2/E-35458)
