Procedure for import of Vegetable Fats under India-Nepal Trade Treaty 2002
The India-Nepal Treaty of Trade 2002, as renewed with effect from 6th March 2007 for a period of five years, has fixed a Tariff Rate Quota (TRQ) of 1 lakh Metric Tonnes of Vegetable Fat (Vanaspati Ghee) as Nepalese manufactured article and allowed its entry into India free of customs duty. The Vegetable Fat (ITC HS Code No 151620) within TRQ is allowed to be imported into India in accordance with the canalization process agreed between both parties. Pursuant to discussions on the request of the Government of Nepal, in order to facilitate export of vegetable fat from Nepal under the Treaty, following revised procedure has been agreed and notified:
i. The Department of Commerce, Government of Nepal, as designated by the Government of Nepal, will be the authority for allocation of TRQ among its vanaspati ghee manufacturers on an annual basis
ii. The quota so allocated to each manufacturer/exporter on a quarterly basis would be communicated by the designated authority of Nepal (Department of Commerce) to Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, Government of India in the first fortnight of the Indian Financial Year 1st April to 31st March.
iii. The import of allocated quota will be allowed into India based on production of Tariff Rate Quota Certificate (TRQC) and Certificate of Origin (COO) issued by the designated authority in Nepal, namely Department of Commerce. The TRQC shall be issued in advance in duplicate. The TRQC will be sent by the Nepalese exporter to Indian importer.
iv. Import quota of one quarter shall not be allowed to be carried over to the next quarter. Date of import for this purpose shall be reckoned with reference to the bill of lading date.
v. The designated authority in Nepal (Department of Commerce) will ensure that quarterly quota would be so allocated that its export to India is evenly distributed in Indian states without adversely affecting markets in any particular state.
vi. Government of Nepal shall send a statement of actual exports, indicating state-wise destination, made by exporters who were allocated the quota one week after the end of every quarter, to DGFT in format prescribed.
DGFT Public Notice No. 157 (RE-2008)/2004-09, Dated: March 2, 2009