Parboiled Rice Exports without 20% Duty only after Testing on
Customs Lab, AEO Exempted from testing Declaration is Enough
·
Provisional
Export under Bond Allowed to get past delays in Test Report
·
Export Duty of 20% Imposed
on Non-Basmati Rice from Sept 9 by Notification No. 49/2022-Customs dated
08.09.2022
The following
procedure for confirming the correctness of declaration in respect of goods declared
as parboiled rice under CTH 1006.30.10 may be adopted in normal course -
a. Representative samples be drawn at the time of
export and sent for test to CRCL, and consignments allowed for export on a
provisional basis with a bond only.
b. However, drawl of sample for test and
provisional basis with bond only may not be applied to export consignment of a
Tier-2 or Tier-3 Authorized Economic Operator (AEO) which may be allowed for
export basis the declaration/self-assessment, except when RMS specifies that
sample for test is required to be drawn.
[CBIC
Instruction No. 29/2022-Customs dated 28.10.2022]
Subject: Procedure for
identification of parboiled rice varieties during exports.
The
undersigned is directed to say that there is presently a levy of export duty on
rice falling under CTH 1006.30.90 vide Notification No. 49/2022-Customs dated
08.09.2022 with effect from 09.09.2022. The current classification structure is
as follows:
1006
30 - Semi milled or wholly milled
rice, whether or not polished or glazed
1006
30 10 --- Rice, Parboiled
1006
30 20 --- Basmati rice
1006
30 90 ---Other
2. References
have been received of variation in procedure followed for identification of
parboiled rice variety of CTH 1006.30.10 (which attracts nil rate of duty) at
the time of export so as to distinguish it from other varieties of rice under
the CTH 1006.30.90 which are dutiable. It has also been reported that when
provisional assessment is resorted, bank guarantee is insisted in some field
formations (and not in others) leading to uncertainty/delay in export as well
as a financial burden on the exporter in such cases.
3.1 The
matter has been examined. The issue here is only the adoption, in normal
course, of least burdensome procedure to merely rule out the export of dutiable
rice variety declared as non-dutiable parboiled rice variety. The Department of
Food and Public Distribution (DFPD) has informed that there is no direct
method, other than by testing, found in the literature, to identify parboiled
rice variety with certainty vis a vis other. It is relevant that the DGFT
prescribed export policy condition is 'Free' for the above classification
structure.
3.2
Accordingly, in the above context, it is guided that the following procedure for
confirming the correctness of declaration in respect of goods declared as
parboiled rice under CTH 1006.30.10 may be adopted in normal course -
a. Representative samples be drawn at the time of
export and sent for test to CRCL, and consignments allowed for export on a
provisional basis with a bond only.
b. However, drawl of sample for test and
provisional basis with bond only may not be applied to export consignment of a
Tier-2 or Tier-3 Authorized Economic Operator (AEO) which may be allowed for
export basis the declaration/self-assessment, except when RMS specifies that
sample for test is required to be drawn.
3.3 The
above procedure shall not be applicable in a case where intervention is
required based on a specific intelligence; or where for reasons recorded in
writing deviation from the above procedure is necessary.
4. Difficulties
faced, if any, in the implementation of the above instructions, may be brought
to the notice of the Board.
F.No.
524/24/2022-STO(TU)