Ministry of Commerce & Industry, Government of India, through the Directorate General of Foreign Trade (DGFT), releases Trade Notice No. 18/2023-DGFT on 28th July 2023. The notice addresses the procedure for allocating export quotas for broken rice on humanitarian and food security grounds, based on requests from the Governments of Mali and Bhutan.
The export policy of broken rice was amended by the Government of India, making it ‘Prohibited.’ However, the policy allows export based on the permission granted to other countries to meet their food security needs, upon request from their government. Requests from Mali and Bhutan for importing 1.00 Lakh Metric Ton and 48,804 Metric Ton, respectively, of broken rice from India during FY 2023-24 have been approved.
The mode of allocation is objective and transparent, with applications submitted through an online portal. The allocation will be based on pro-rata to average exports of all varieties of rice to the respective countries in the previous three years, subject to minimum thresholds.
Exporters seeking allocation under the approved quota can apply online from 28th July 2023 to 7th August 2023 through the DGFT website. The exporters allocated the broken rice quota must submit the ‘Landing Certificate’ within 90 days of completing the export. Non-compliance or mis-declaration may lead to blacklisting and legal action. The notice aims to ensure a fair and transparent process for broken rice export quotas on humanitarian and food security grounds.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Trade Notice No. 18/2023-DGFT | Dated: 28th July, 2023
To
1. All Regional Authorities of DGFT
2. All Customs Commissionerate
3. Members of Trade
Subject: Procedure for allocation of quota for export of broken rice on humanitarian and food security grounds, based on request received from Government of Mali and Government of Bhutan.
Government of India amended the export policy of broken rice under HS Code 1006 40 00 from ‘Free’ to ‘Prohibited’ vide Notification No.31/2015-2020 dated 8th September, 2022.
2. The Government of India further amended the export policy of broken rice vide Notification No. 07/2023 dated 24th May, 2023 incorporating the following policy condition:
“Export will be allowed on the basis of permission granted by the Government of India to other Countries to meet their food security needs and based on the request of their Government”.
3. The request received from the Government of Mali and Government of Bhutan for import of 1.00 Lakh Metric Ton and 48,804 Metric Ton, respectively, of broken rice from India during the FY 2023-24 have been approved by the competent authority.
4 Accordingly, applications are invited from exporters of rice for allocation of quota. In order to maintain objectivity and utmost transparency in allocation of the quota, the mode of allocation is decided as under:-
I. Applications may be submitted through an online portal;
II. Allocation may be made with minimum threshold of 2000 MT by sea and 100 MT by land.
III. Application would be allowed only if the exporter applies for quantity more than the minimum threshold.
IV. Allocation will be first made on the basis of pro-rata to average export of rice (all varieties) respectively to the country concerned in three years previous to FY in which the item was prohibited and quantity applied for, whichever is less subject to minimum threshold.
V. Any unutilized quantity will then be reallocated again to the eligible exporters on pro-rata basis as in point V.
5. Based on the above mode of allocation, the procedure to apply for the export authorization under approved quota is outlined as below: –
a. Exporters can apply online through DGFT’s ECOM system for Export Authorisations Non-SCOMET Restricted Items (Please refer Trade Notice No. 03/2021-22 dated 10.05.2021. There is no need to send hard copy of the application via mail or post.
b. Validity of the Export Authorisation will be till 31st March, 2024.
c. Online applications filed from 28/07/2023 to 07/08/2023 will only be considered.
d. The documents to be submitted along with the application must include the following:
i. Export data for export of rice (all varieties) to Mali and Bhutan during three years previous to FY in which the item was prohibited;
6. All applicants seeking export authorization for restricted items may apply online by navigating to the DGFT website (https://www.dgft.gov.in) -> Services -> Export Management Systems -> License for Restricted Exports.
7. Deficient applications or applications received through mails or by post will not be considered.
8. The exporters who have been allocated the quota of broken rice will submit the ‘Landing Certificate’ within 90 days of completion of export of allocated quota of broken rice.
9. In case of any mis-declaration by an applicant or any applicant failing to export the allocated quota to the respective Country(ies), within the specified time period, will be black listed for the next two financial years and action under the relevant provisions of FT (I)&R) Act, 1992, as amended, shall be taken against the applicant.
This issues with the approval of competent authority.
(S.K. Mohapatra)
Joint Director General of Foreign Trade
E-mail: [email protected]
(Issued from F. No. 01/91/171/35/AM20/E-file/Part-2/E-35458)
