CBIC Asks Field Formations to Follow DGFT and Sugar Directorate in Sugar Export

· Sugar Export Regulations under OGL in the Current Sugar Seasons 2022-23 (Oct-Sept)

[Instruction No.33/2022-Customs dated 12^th December 2022]

Subject: Sugar Policy and Sugar Mill wise export quantity of sugar for export in sugar season 2022-23.

Please refer the Instruction No. 07/2022-Customs dated 31.05.2022 on the related subject.

2. Vide above instruction, attention was invited to DGFT Notification No. 10/2015-20 dated 24.05.2022 regarding amendment in the export policy of sugar (Raw, Refined and White Sugar) which was placed under restricted category from 01.06.2022 till 31.10.2022. Further reference was also invited to instructions on the modalities for undertaking sugar export.

3. In the partial modification to above DGFT Notification, DGFT has now issued Notification No. 40/2015-2020 dated 28.10.2022, issued vide F. No.01/91/180/879/AM08/ EC/Vol.8/E-20749 (copy enclosed) regarding extension of the date of 'Restriction' by the Government, on export of sugar (Raw Sugar, Refined sugar and White Sugar) under HS Codes 1701 14 90 and 1701 99 90 beyond 31^st October, 2022 till 31^st October 2023.

4. Government has decided to allocate sugar mill wise export quota of 60 LMT of sugar for export for sugar season 2022-23 w.e.f. 01.11.2022 (list of the sugar mill is enclosed at annexure). The modalities to undertake export of sugar and guidelines thereof is in the OM F. No. 1(1)/2022-Trade dated 05.11.2022 received from Department of Food & Public Distribution (Copy enclosed).

5. All the Pr. Chief/Chief Commissioners are requested that all concerned in your jurisdiction may be sensitized regarding the above mentioned amendments in the export policy of Sugar (Raw, Refined and White Sugar) and modalities and guidelines furnished vide above mentioned OM dated 05.11.2022.

(To be Published in the Gazette of India Extraordinary Part-II, Section 1, Sub-Section II)

Government of India Ministry of Commerce & Industry Department of Commerce

Directorate General of Foreign Trade

Vanijya Bhawan, New Delhi

Notification No. 40 /2015-20

Dated: 29 October, 2022

Subject: - Extension of date for restriction on export of sugar beyond 31^st October 2022.

S.O. (E) In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, in partial modification of Notification No. 10/2015-2020 dated 24^th May. 2022, the Central Government hereby extends the date of ’Restriction’ on export of Sugar (Raw Sugar, Refined Sugar and White Sugar) under HS Codes 1701 14 90and 1701 99 90 beyond 31^st October, 2022 till 31st October, 2023, or until further orders, whichever is earlier.

2. This restriction is not applicable to Sugar being exported to EU and USA under CXI and TRQ quota as per prescribed procedure in the respective Public Notices.

3. Effect of this Notification:

Restriction on export of Sugar (Raw, Refined and White sugar) is extended beyond 31.10.2022 till 31.10.2023, or until further orders, whichever is earlier. Other condition will remain unchanged.

(Issued from File No. 01/91/180/879/AM08/EC/Vol.8/E-20749)

F.No.1(1)/2022-Trade

Government of India

Ministry of Consumer Affairs, Food & Public Distribution

Department of Food & Public Distribution (DFPD)

Directorate of Sugar & Vegetable Oils

Krishi Bhawan, New Delhi

Dated the 05^th November, 2022

To,

CEO/MD of all Sugar Mills.

Subject: Sugar mill-wise Export Quantity of sugar for export in Sugar Season 2022-23.

Madam/Sir,

In order to prevent uncontrolled export of sugar & with a view to ensure sufficient availability of sugar for domestic consumption at a reasonable price, Government has decided to allow export of sugar upto a reasonable limit w.e.f 01.11.2022 till 31.10.2023. Directorate General of Foreign Trade (DGFT), Ministry of Commerce vide Notification No. 40/2015-20 dated 28.10.2022 (copy enclosed) has also amended export policy in respect of sugar.

2. Now, in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966, Government has decided to allocate sugar mill wise export quota of 60 LMT of sugar for export for sugar season 2022-23 w.e.f.01.11.2022.

3. All grades of sugar i.e. raw, white as well as refined sugar can be exported by a sugar mill/refinery/exporter upto the extent of quantity mentioned in the Annexure. Export quota of 60 LMT have been pro-rated amongst those sugar mills which operated in at least one sugar season amongst the last three sugar seasons by taking into account their average production of sugar achieved by the sugar mills during the last three operational sugar seasons i.e. 2019-20, 2020-21and 2021-22, in following manner:-

Average production of a sugar mill in operational Sugar Seasons X 60LMT Average production of sugar by all mills in operational Sugar Seasons

All the sugar mills have been allocated a uniform export quota of 18.23% of their 3 years average production of sugar in operational sugar seasons. Sugar mill wise export quota is at Annexure.

4. The new sugar mills which may commence sugar production for the first-time during sugar season 2022-23 or the mills which were closed in the previous three sugar season(s) but may restart in the sugar season 2022-23 or the mills whose names are not indicated in the Annexure will be allocated export quota of 18.23% of their estimated sugar production in sugar season 2022-23 duly verified by respective Cane Commissioner.

5. Modalities to undertake export of sugar are as under:-

a. Sugar mills can export quantity of sugar mentioned in Annexure either themselves or through merchant exporters/refineries from 01.112022 to 31.05.2023.

b. Those sugar mills which are not willing to export sugar can surrender their export quota (partially / whole) within 60 days from date of issuance of this order.

c. In case, mills are not able to dispatch 90% of their export quota by 31.05.2023, then,30% of the un-exported quantity out of their allocated quota would be deducted from their monthly domestic quota of July/ August. 2023.

d. Mills can also exchange their export quota (partially/ whole) with domestic quota of any other sugar mill within 60 days from date of issuance of this order. Exchange of export quota with domestic quota would reduce transportation cost involved in export of sugar & movement of sugar from one state to another for domestic consumption. For example, if a mill in Punjab or Uttar Pradesh far away from port does not wish to export due to higher transportation cost involved can exchange its export quota with monthly domestic release quantity of any other mill located nearer to the port. Modalities for exchange of export quota quantity from the quantity of monthly release quota are as under:

i. Those sugar mills which do not wish to export the allocated quantity (whole/partial) allocated to them as per Annexure-1, may exchange their export quota quantity with the monthly release quota of any other sugar mill which is willing to take the additional export quota quantity for export.

ii. The sugar mills involved in such exchange of their export quota with domestic monthly release quantity are required to enter into an agreement and submit it to DFPD for reallocation of their export quota, as well as monthly release quantity.

iii. The export quota exchanged with monthly release quota can be adjusted by the end of current sugar season 2022-23 i.e. by 30.09.2023. Therefore, sugar mills should apply for reallocation after considering their average monthly release.

iv. DFPD will issue orders for exchange of domestic quota with export quota on weekly basis.

e. The custom authorities to ensure that sugar will be exported by sugar mills/ exporters/ domestic refineries on the basis of export quota allocated to sugar mills & on furnishing the instant order, agreement between the sugar mill or merchant exporters/ refinery & factory invoice indicating dispatch of sugar from the sugar mill to whom quota has been allocated. However, in case of group sugar mills, sugar can be exported from any mill of the group by furnishing a bi-partite I tri-partite agreement between the source sugar mill (from where sugar is being lifted for export), sugar mill to whom export quota has been allocated and merchant exporter/ refinery. Any change in the export quota due to surrender or exchange of export quota with domestic quota of any other sugar mill will be published on the website separately.

f. Exporters/ sugar mills/ refinery can export only the export quota quantity allocated to sugar mills; & sugar purchased from open market or from domestic quota of sugar mill is not allowed to be exported by any sugar mill/ exporter/ refinery.

6. Since, raw sugar is either directly exported by a sugar mill or after value addition of such raw sugar by refinery or a mill having a refining capacity and thereafter, it is exported in the form of refined sugar, therefore, customs authorities may allow export of such refined sugar by the refinery / sugar mill/exporter provided the quantity is within the export quota allocated to a sugar mill. For this purpose the raw / white sugar manufacturer, the sugar refinery & exporter shall enter into bi-partite / tri-partite agreement.

7. The supply of sugar by sugar mills to Special Economic Zone (SEZ) refinery up to the extent of export quota as per the instant order will be considered as export.

8. Further, the export restrictions will not be applicable for export of refined sugar produced after procuring raw sugar under Advance Authorization Scheme (AAS).

9. Where DFPD is of the opinion that it is necessary or expedient to do so, it may, by order and for reasons to be recorded in writing modify any of the modalities for export of sugar.

10. All sugar mills need to upload details of export of sugar on daily basis on P II System on DFPD portal namely 'esugar.nic.in'.

11. Any violation of the above-mentioned guidelines or breach of quota will attract strict action against the concerned sugar mill/exporter/refinery under the Essential Commodities Act 1955 and the Foreign Trade (Development & Regulation) Act 1992.