Introduction: The Government of India, under the Ministry of Commerce & Industry, Department of Commerce, Directorate General of Foreign Trade (DGFT), recently issued Notification No.42/2023 on the 28th of October, 2023. This notification pertains to the imposition of a Minimum Export Price (MEP) on the export of onions, aiming to regulate the onion market and protect domestic interests.
Detailed Analysis
The key points of the notification are as follows:
1. Amendment of Export Policy: The Central Government, utilizing powers conferred by the Foreign Trade (Development & Regulation) Act, 1992, amended the Export Policy for onions under S.No.51 of Chapter 07 of Schedule 2 of the ITC (HS) Export Policy. The policy now categorizes onions under Tariff item HS Code 0703 10 10 and 0712 20 00. All varieties of onions, except Bangalore Rose onions and Krishnapuram onions, excluding cut, sliced, or broken in powder form, are subject to this amendment. They are categorized as ‘Free’ for export but subject to a Minimum Export Price (MEP) of US $ 800 F.O.B. per Metric Ton (MT) until 31st December, 2023.
2. Effective Date: The notification came into effect from 29th October, 2023.
3. Exemptions: The notification allows certain consignments of onions to be exported without the MEP, including those handed over to Customs or registered in their system before the notification date. Additionally, export duty paid before the notification issuance remains non-refundable. The period for such exempted exports is until 30th November, 2023.
4. Impact: As a result of this notification, the export of onions is categorized as ‘Free,’ but a Minimum Export Price (MEP) of US $800 F.O.B per Metric Ton (MT) is imposed until 31st December, 2023.
Conclusion: The Government of India, through the Directorate General of Foreign Trade (DGFT), has taken a proactive step to regulate the export of onions by imposing a Minimum Export Price (MEP). This measure is aimed at stabilizing the onion market and ensuring that domestic interests are safeguarded. Exemptions have been provided for consignments that entered the Customs system or had export duty paid before the issuance of this notification. It is essential for stakeholders in the onion trade to be aware of and comply with these regulations during the specified period. For further inquiries and clarifications, the contact information for the Director General of Foreign Trade is provided in the notification.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Notification No.42/2023 – DGFT | Dated: 28th October, 2023
Subject: – Imposition of Minimum Export Price on export of Onions.
S.O.4719(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 under S.No.51 of Chapter 07 of Schedule 2 of the ITC (HS) Export Policy, as under:
|
S. No. |
Tariff item HS Code | Unit | Item description | Export Policy | Policy condition |
| 51 | 0703 10 10
0712 20 00 |
KG | Onion (all varieties except Bangalore Rose onions and Krishnapuram onions) excluding cut, sliced or broken in powder form. | Free | Subject to a Minimum Export Price (MEP) of US $ 800 F.O.B. per Metric Ton (MT), till 31st December, 2023.” |
2. The Notification will come into effect from 29th October, 2023.
3. The following consignments of onions will be allowed to be exported without MEP:
i. Where onions consignment has been handed over to the Customs before this Notification and is registered in their system / where onions 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 the issuance of this Notification. The period of export shall be upto 30th November, 2023.
ii. Export duty has been paid before the issuance of this Notification. Such export duty is non- refundable.
4. Effect of this Notification:
Export of onions is ‘Free’. Minimum Export Price (MEP) of US $ 800 F.O.B per Metric Ton (MT) is imposed till 31st December, 2023.
(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)
