Export policy of onions under HS Code 0703 10 19 is amended from ‘Free’ to ‘Prohibited, till 31.03.2024’ vide Notification No. 49/2023-DGFT | Dated: 7th December, 2023.
Introduction: The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Notification No. 49/2023-DGFT on December 7, 2023. This notification signifies a crucial amendment in the export policy of onions, impacting trade dynamics. This article delves into the specifics of the amendment, the revised export policy, and the conditions associated with it.
Detailed Analysis:
1. Legal Authority: The amendment is enacted under the powers conferred by Section 3 and Section 5 of the Foreign Trade (Development & Regulation) Act, 1992, along with relevant provisions of the Foreign Trade Policy, 2023.
2. Export Policy Modification: The notification amends the export policy for onions under HS Code 0703 10 19, shifting it from ‘Free’ to ‘Prohibited’ until March 31, 2024. This shift is a strategic measure with implications for onion exporters.
3. Minimum Export Price (MEP): While the export policy is now ‘Prohibited,’ an exception is made for consignments subject to a Minimum Export Price (MEP) of US $800 F.O.B. per Metric Ton (MT) until December 31, 2023.
4. Effective Date and Exemptions: The changes come into effect from December 8, 2023. The notification outlines specific exemptions allowing the export of onions under certain conditions, such as consignments already in the Customs system before the notification.
5. Transitional Arrangements: Notably, the transitional arrangements specified in Para 1.05 of the Foreign Trade Policy, 2023, do not apply to this notification, emphasizing the immediate and impactful nature of the policy shift.
6. Government Permissions and International Trade: The notification acknowledges the possibility of onion exports based on permissions granted to other countries upon their governments’ requests, reflecting international trade considerations.
Conclusion: DGFT Notification 49/2023 marks a significant alteration in the onion export landscape, imposing a ‘Prohibited’ status until March 31, 2024. While exemptions exist for consignments meeting specific conditions, the overall impact on onion trade is substantial.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No. 49/2023-DGFT | Dated: 7th December, 2023
Subject: – Amendment in export policy of Onions.
S.O. 5201(E). In exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends the Export Policy of Onions in Chapter 07 of Schedule 2 of the ITC (HS) Export Policy, as under:
| Tariff item HS Code | Unit | Item description | Export Policy | Policy condition | Revised Export Policy | Revised Policy condition |
| 0703 10 19 | KG | Onions: | Free | Subject to a Minimum Export Price (MEP) of US $ 800 F.O.B. per Metric Ton (MT), till 31St December, 2023.” |
Prohibited till 31.03.2024. | — |
2. The Notification will come into effect from 08.12.2023. The provisions as under Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under this Notification. Further, consignments of onions will be allowed to be exported on fulfillment of any one of the following three conditions:
i. where loading of onions 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 for loading of onion 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 onions prior to’ the Notification; and
iii. where consignments of onions has been handed over to the Customs before this Notification and is registered in their system / where consignments onions 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 issuance of this Notification. The period of export shall be upto 5th January, 2024.
3. Export on onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government.
4. Effect of this Notification:
Export policy of onions under HS Code 0703 10 19 is amended from ‘Free’ to ‘Prohibited, till 31.03.2024’.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-Officio Additional Secretary, Government of India
E-mail: dgft@nic.in
(Issued from File No.01/91/171/50/Misc/AM21/e-26586)
