Basmati Rice MEP Slashed to US$700/MT from US$900/MT

· Export Permitted from All EDI Ports

· Registration of Contracts with APEDA Must

[DGFT Notification No. 97 dated 21^st February 2012]

Subject: Amendment in Chapter 10 of Schedule 2 of ITC(HS) Classification of Export and Import Items relating to export of Basmati Rice.

In exercise of the powers conferred by Section 5 read with Section 3(2) of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) and also read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby notifies the following amendment in Schedule 2 of ITC(HS) Classification of Export and Import Items, with immediate effect.

2. The existing entries at Sl. No. 45 AA in Chapter 10 of Schedule 2 of ITC(HS) Classification of Export and Import Items will now read as under:

Sl. No.	HS Code	Unit	Item description	Export Policy	Nature of Restriction
45AA	1006 30 20	Kg	Basmati Rice (Dehusked (Brown), semi milled, milled both in either par-boiled or raw condition).	Free	(i) Exports allowed subject to registration of contracts with the APEDA , New Delhi; (ii) Export will be subject to Minimum Export Price (MEP) of US $ 700 per ton FOB or as notified by DGFT from time to time. MEP shall be exclusive of foreign commission; (iii) Grain of rice to be exported shall be more than 6.61 mm of length and ratio of length to breadth of the grain shall be more than 3.5; (iv) Export of Basmati Rice is permitted through all EDI ports; (v) Exports to European Union permitted subject to pre-shipment quality inspection as may be specified by the Government through a notification; (vi) Exports to Russian Federation permitted subject to pre-shipment quality certification issued by (1) Insecticide Residue Testing Laboratory. (2) Geo-Chem Laboratories Pvt. Ltd. (3) Reliable Analytical Laboratory (4) Arbro Pharmaceuticals Ltd. (5) Shri Ram Institute for Industrial Research, Delhi (6) Shri Ram Institute for Industrial Research, Branch Office Bangalore (7) Delhi Test House; and (8) Vimta Labs. or any other agency as may be notified from time to time.” (vii) Exports of empty printed gunny bags with Markings indicating the product being Indian Basmati Rice, in whatever manner, are not permitted except when exported along with the consignments of Basmati Rice, in which cases also, the same shall not exceed 2% of the total number of filled gunny bags of Basmati Rice being exported; (viii) In case of un-bagged Indian Basmati Rice being exported in bulk or in bags of 50 Kgs or above, the exports of empty printed gunny bags with Markings indicating the product being Indian Basmati Rice, in whatever manner, shall also be permitted to the extent of actual requirements considering the total quantity of the consignment and the sizes of the empty bags being exported.

3. Effect of this notification

(i) Minimum Export Price of Basmati Rice has been reduced to US$ 700 per MT. Earlier it was US$ 900 or Rs. 41,400/- per MT FOB. MEP is expressed only in terms of US dollar.

(ii) Export is now permitted through all EDI ports. Earlier it was allowed only through six ports.

(iii) There is no change in any of the other existing conditions for export of basmati rice as have been notified from time to time. These conditions have been consolidated in the column “Nature of Restrictions” in the table of para 2.