The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 08/2023-DGFT on June 20, 2023. The notice outlines the procedure for the allocation of a quota for the export of broken rice on humanitarian and food security grounds. This measure is based on requests received from other countries’ governments and aims to maintain transparency and objectivity in the allocation process.
The trade notice explains that the export policy of broken rice under HS Code 1006 40 00 was amended by the Government of India, prohibiting its export. However, certain exceptions were made for consignments that met specific conditions. The notice also highlights the recent amendment to the export policy, allowing export on the basis of permission granted by the Government of India to other countries to meet their food security needs.
Exporters who have previously exported rice (all varieties) to Senegal, Gambia, and Indonesia in the three years prior to the financial year (FY) in which the export was prohibited are eligible to apply for quota allocation. The allocation process follows a pro-rata system based on past export records and quantity applied for, subject to a minimum threshold of 8000 MT by sea. Unutilized quota will be reallocated to eligible exporters on a pro-rata basis.
To apply for export authorization under the approved quota, exporters must submit their applications online through the DGFT’s ECOM system within the specified timeframe. The validity of the Export Authorization will be until December 31, 2023. It is crucial for allocated exporters to submit the ‘Landing Certificate’ within one month of completing the export of the allocated broken rice quota.
The DGFT’s Trade Notice No. 08/2023-DGFT provides exporters with the procedure to apply for quota allocation for the export of broken rice on humanitarian and food security grounds. Eligible exporters must apply online through the DGFT’s ECOM system within the specified timeframe. The allocation process follows a pro-rata system based on past export records and quantity applied for. It is essential for allocated exporters to submit the ‘Landing Certificate’ within one month of completing the export of the allocated broken rice quota. For further information and to access the online application portal, visit the DGFT website at https://www.dgft.gov.in.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Trade Notice No. 08/2023-DGFT | Dated: 20th June, 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 requests received from Governments of other Countries.
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. The Notification came into effect from 9th September, 2022. The provisions as under Para 1.05 of the Foreign Trade Policy, 2015-2020 regarding transitional arrangement is not be applicable under this Notification for export of broken rice. During the period from 9th September, 2022 till 15th September, 2022, which was later extended upto 15th October. 2022, the following consignments of broken rice were allowed to be exported:
i. where loading of broken 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 broken rice prior to the Notification; and
iii. where broken rice consignment has been handed over to the Customs before this Notification and is registered in their system / where broken 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 8.9.2022. The period of export shall be upto 30th November, 2022.”
3. 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”.
4. The requests received from the Government of Senegal, Gambia and Indonesia for import of broken rice from India during the FY 2023-24 has been approved by the competent authority.
5. 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. Only those exporters are eligible to submit applications who have exported rice (all varieties) to Senegal, Gambia and Indonesia in three years previous to FY in which the item was prohibited.
III. Allocation may be made with minimum threshold of 8000 MT by sea.
IV. Application would be allowed only if the exporter applies for quantity more than the minimum threshold.
V. 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.
VI. Any unutilized quantity will then be reallocated again to the eligible exporters on pro-rata basis as in point V.
6. 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 December, 2023.
c. Online applications filed from 21/06/2023 to 30/06/2023 will only be considered.
d. The documents to be submitted along with the application must include the following:
i. Export data for three years previous to FY in which the item was prohibited;
7. 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.
8. Deficient applications or applications received through mails or by post will not be considered.
9. The exporters who have been allocated the quota of broken rice will submit the ‘Landing Certificate’ within one month of completion of export of allocation quota of broken rice.
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)
