Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 09/2023-DGFT on June 20, 2023. The notice outlines the procedure for the allocation of a quota for the export of wheat 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 highlights that the export of wheat was prohibited by the Government of India, but certain exceptions were allowed under specific conditions. Exporters who have previously exported wheat to Nepal in the three years prior to the financial year (FY) in which the export was prohibited are eligible to apply for quota allocation. The minimum threshold for allocation is set at 100 MT by land transport to neighboring countries.
The allocation of quota follows a pro-rata system based on the average export of wheat to the concerned country in the three years before the prohibition and the quantity applied for, subject to the minimum threshold. Any unutilized quota will be reallocated to eligible exporters on a pro-rata basis. The procedure to apply for export authorization is conducted online through the DGFT’s ECOM system, with specific dates for application submission.
The DGFT’s Trade Notice No. 09/2023-DGFT provides exporters with the procedure to apply for quota allocation for the export of wheat 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 wheat 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. 09/2023-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 wheat on humanitarian and food security grounds, based on requests received from Governments of other Countries.
Government of India vide Notification No. 06/2015-20 dated 13.05.2022 prohibited export of wheat. However, export of wheat in the above said Notification was allowed under the following conditions:
i. As a transitional arrangement, export will be allowed in case of shipments where Irrevocable Letter of Credit (ICLC) has been issued on or before the date of this Notification or in case where advance payment has been received by the exporter in India on or before the date of this Notification, subject to submission of documentary evidence as prescribed; or
ii. Export will also 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 governments.
2. The requests received from the Government of Nepal for import of wheat from India during the FY 2023-24 has been approved by the competent authority.
3. Accordingly, applications are invited from exporters of wheat for allocation of quota. In order to maintain objectivity and 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 wheat to Nepal in three years previous to FY in which the item was prohibited.
III. Minimum threshold will be 100 MT by land transport to neighbouring country.
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 wheat 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 March, 2024.
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://wvvvv.dgft.gov.in) -> Services -> Export Management Systems -> License for Restricted Exports.
8. Deficient applications or applications received through mails or by post will not he considered.
9. The exporters who have been allocated the quota of Wheat will submit the ‘Landing Certificate’ within one month of completion of export of allocated quota of Wheat.
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)
