Import of 17,000 tonnes of Green Areca Nut without MIP Condition from Bhutan through Jaigaon LCD Allowed

· Imports from Bhutan are permitted through the Land Customs Station of Jaigaon (INJIGB)

· Valid Registration Certificate issued by the DGFT also required

The government on Wednesday allowed the import of 17,000 tonnes of green areca nut without minimum import price (MIP) condition from Bhutan every year. In 2017, the government imposed MIP at Rs 251 per kg with an aim to safeguard domestic farmers. In 2018, the imports of areca nut in any form were allowed if the price is over Rs 251 per kilogram.

However, imports are banned if the price is below the threshold. The minimum import price (MIP) is the rate below which no imports are allowed.

According to a notification of the Directorate General of Foreign Trade (DGFT), imports from Bhutan are permitted through the land customs station of Jaigaon (INJIGB).

It is also subject to a valid registration certificate issued by the DGFT for imports.

"Import of 17,000 tonnes of fresh (green) areca nut without minimum import price condition shall be allowed from Bhutan every year through LCS Jaigaon (INJIGB), subject to valid registration certificate issued by the DGFT," the notification said.

The directorate has also notified the procedure for the registration certificate.

In a public notice, it said that for the second half of 2022-23, a pro-rata quantity of 8,500 MT of fresh (green) areca nut may be imported without MIP from Bhutan.

For 2023-24, a total of 17,000 MTs may be imported, it said.

Before imports, an importer will have to seek a registration certificate (RC) from the DGFT. Under an RC, the maximum quantity allowed is 500 MTs.

The importer can apply for additional quantities once the quantities already registered have been duly imported. "RC shall be valid for a maximum period of 6 months or the end of the financial year, whichever is earlier," it added. Karnataka is the largest producer of areca nut, followed by Kerala and Assam.

Domestic producers had earlier alleged that imports were increasing from neighbouring countries taking advantage of low import duty provided under SAFTA (South Asia Free Trade Agreement).

SAFTA was implemented in 2006 between India, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka.

[Notification No. 36/2015 -2020 dated 28 September 2022]

Effect of the Notification: Import of 17,000 MTs of Fresh (green) Areca Nut without Minimum Import Price (MIP) condition shall be allowed from Bhutan every year through LCS Jaigaon (1NJIGB), subject to valid Registration Certificate issued by DGFT.

Subject: Amendment in Import Policy Condition under ITC(IIS) 0802 80 10 of Chapter 08 of ITC(IIS) 2022, Schedule – I (Import Policy).

S.O. (E): In exercise of powers conferred by Section 3 read with Section 5 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends the import policy conditions of items under ITC (HS) 0802 80 10 of Chapter 08 of ITC (HS), 2022, Schedule I (Import Policy):

Exim Code	Item Description	Existing Policy	Existing Policy Condition	Revised Policy Condition
080280	- Areca nut
0802 80 10	--- whole	Prohibited	However, import is free if CIF value is Rs. 251/- and above per Kilogram.	(a) However, import is free if CIF value is Rs. 251/- and above per Kilogram. (b) Import of 17,000 Metric Tonnes of Fresh (green) Areca Nut without Minimum Import Price (MIP) condition shall be allowed from Bhutan every year. Such imports are allowed only: (i) through LCS Jaigaon (INJIGB) only, and, (ii) shall be subject to a valid Registration Certificate issued by DGFT

This issues with the approval of Minister of Commerce & Industry.

[Issued from File No. 01/89/180/43/AM-01/PC-2[A]/Part-III/E-8258]