Introduction: The Ministry of Commerce and Industry, through the Directorate General of Foreign Trade (DGFT), has issued Notification No. 45/2023 dated 23rd November, 2023, bringing significant changes to the export policy of onions. This amendment, in supersession of the previous Notification No. 42/2023, imposes a Minimum Export Price (MEP) on onions, impacting the onion trade landscape.

Detailed Analysis:

  • Amendment Details: The central government, exercising its powers under the Foreign Trade (Development & Regulation) Act, 1992, has amended the Export Policy of Onions in Chapter 07 of Schedule 2 of the ITC (HS) Export Policy. The specific amendment pertains to Tariff item HS Code 0703 10 19 for onions, which will now be subject to a Minimum Export Price (MEP) of US $ 800 F.O.B. per Metric Ton until 31st December, 2023.

  • Exemptions and Conditions: The notification provides exemptions for certain consignments of onions. Onions that have been handed over to Customs or entered the Customs station for exportation before 29th October, 2023, are allowed to be exported without MEP. Additionally, onions on which export duty has been paid before the issuance of this notification are also exempted. However, such export duty is non-refundable.
  • Immediate Implementation: The notification emphasizes that the changes will come into immediate effect, impacting onion exports from the date of issuance.

  • Supersession of Previous Notification: Notification No. 45/2023 supersedes Notification No. 42/2023 dated 28/10/2023 [S.O. 4719(E)], indicating a shift in the regulatory framework concerning onion exports.

Conclusion: In conclusion, the DGFT’s recent notification brings a significant alteration to the export dynamics of onions by introducing a Minimum Export Price. Stakeholders in the onion trade are urged to take note of these changes, especially the exemptions provided and the immediate implementation of the amended policy. This regulatory shift underscores the government’s efforts to regulate and stabilize the onion market, ensuring a balance between domestic availability and international trade considerations. It is advisable for exporters and industry participants to stay informed and compliant with these regulatory adjustments for smooth operations in the onion export sector.

*****

Ministry of Commerce and Industry
(Department of Commerce)
(Directorate General of Foreign Trade)

Notification No. 45/2023- DGFT| Dated: 23rd November, 2023

Subject: – Imposition of Minimum Export Price on export of Onions.

S.O. 5031(E).—In supersession of Notification No.42/2023 dated 28/10/2023 [S.O. 4719(E)] and 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
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.”

2. The Notification will come into immediate

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 29th October, 2023 (the date from which the Notification No.42/2023 dated 28/10/2023 [S.O. 4719(E)] came into effect) 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 29th October, 2023 (the date from which the Notification No.42/2023 dated 28/10/2023 [S.O. 4719(E)] came into effect). The period of export shall be upto 30th November, 2023.

ii. Export duty has been paid before the issuance of this 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. Notification No.42/2023 dated 28/10/2023 [S.O. 4719(E)] is superseded.

[F. No. 01/91/171/50/Misc/AM21/e-26586]

SANTOSH KUMAR SARANGI, Director General of Foreign Trade Ex-Officio Addl. Secy.

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