Export Duty of 20% Exempted on Rice Shipments Backed by LCs Issued before 8 Sept. 2022

· Goods should have entered Customs Station

· Six lakh tonnes of Zero Duty Paddy Quota for Nepal

· Organic Rice Export at Nil Duty only with NAB Certificate

· Nil Duty only for Exports from 1 Nov. onwards, No Refund of Duty on Past Exports covered by LC

India said it will allow cargoes of white and brown rice backed by letters of credit issued before Sept. 9 to be shipped overseas, a measure that provides some relief to exporters grappling with fresh government curbs.

The world's biggest exporter of rice on Sept. 8 banned exports of broken rice and imposed a 20% duty on exports of various grades as it sought to boost domestic supply and calm local prices after below-average monsoon rainfall curtailed planting.

The surprise move releases nearly 1 million tonnes of rice trapped at ports in transit.

"It's a big relief, which we have been asking for the last few weeks," said B.V. Krishna Rao, president of the Rice Exporters Association.

Export prices for Indian white rice have risen 12% since Sept. 9.

The government also said in its notice issued late on Monday that it would allow 600,000 tonnes of unmilled rice to be exported to Nepal, which traditionally relies on India to ful ll its food grains requirements.

India accounts for more than 40% of global rice shipments and well ahead of competitors with Thailand, Vietnam, Pakistan and Myanmar.

Last month 397,267 tonnes of broken rice quota for exports was opened.

[Notification No. 55/2022-Customs dated 31 October 2022]

Seeks to provide export duty exemption to specified varieties of Rice subject to the prescribed condition(s).

G.S.R. ……(E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below, falling within the Chapter, heading, sub–heading or tariff item of the Second Schedule to the Customs Tariff Act, 1975 (51 of 1975), specified in the corresponding entry in column (2) of the said Table, when exported out of India, from so much of the duty of customs leviable thereon under the said Second Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table, subject to any of the condition(s), specified in the Annexure to this notification, the condition number(s) of which is mentioned in the corresponding entry in column (5) of the said Table, namely: –

Table
Sl. No.	Chapter or heading or sub-heading or tariff item	Description of goods	Rate of duty	Condition number(s)
(1)	(2)	(3)	(4)	(5)
1.	1006 10	Rice in the husk (paddy or rough)	Nil	1
2.	1006 20	Husked (brown) rice	Nil	2 and 3
3.	1006 30 90	Semi-milled or wholly-milled rice, whether or not polished or glazed (other than Parboiled rice and Basmati rice)	Nil	2 and 3
4.	1006	Organic Non-Basmati Rice	Nil	4

Annexure
Condition number	Condition(s)
1.	Goods meant for export to Nepal, when exported through the customs station located at Raxaul or Jogbani or Sonauli, upto an aggregate quantity not exceeding six lakh metric tonnes of total exports of such goods through the said stations, taken together, from the date on which this notification enters into force.
2.	Goods meant for export shall have entered the customs station for the purpose of exportation before the 9th day of September, 2022, and an order permitting clearance has not been issued by the proper officer.
3.	(i) Goods meant for export shall be backed by irrevocable Letter(s) of Credit, wherein the said letter(s) of credit has been opened before the 9th day of September, 2022, and the message exchange date between the Indian and Foreign bank/swift date should be before the 9th day of September, 2022.
	(ii) Such Letter(s) of Credit should have been authenticated by the Recipient Bank.
4.	Goods meant for export shall be allowed to be exported only when accompanied by a Provisional Transaction Certificate/ Transaction Certificate issued by a Certification Body accredited by National Accreditation Body (NAB) for Organic Products under the National Programme for Organic Production of the Department of Commerce, as mentioned in the Directorate General of Foreign Trade Public Notice No. 73 (RE-2013)/2009-2014, dated the 18th November, 2014.

2. This notification shall come into force on the 1st day of November, 2022.

[F. No. CBIC-190354/242/2022-TO(TRU-I)]