Ban on export of Rice - one day relaxation by DGFT - But, why only one day?
In DDT 720, we reported "Now the DGFT has issued a notification prohibiting export of rice other than basmati rice - and retrospectively with effect from 9.10.2007. Can the DGFT retrospectively prohibit export? What happens to exports already made from 9th to 15th October?
In fact, on 19th October, the DGFT had clarified that the ban shall not be applicable to consignments already handed over to Customs for examination and subsequent exports upto Public Notice / Notification date.
Now, the DGFT has amended this Notification [38(RE-2007)/2004-09] to the effect that the ban will apply with effect from 10.10.2007 instead of the original date i.e. 9.10.2007. But why only one day? When the Notification was issued on 15th October how can they expect the exporters to comply with the conditions of the Notification from 10th October?
DGFT Notification 44 (RE - 2007)/2004-2009, Dated: October 30, 2007
A day after the above Notification, another Notification dated 31st October has been issued by the DGFT in relation to export of Rice. This Notification also amends the 38(RE-2007)/2004-2009, dated 15.10.2007 as under:
2.3 Further, the prohibition imposed by this Notification shall not be applicable to the export of non-basmati rice if the Minimum Export Price (MEP) is more than US$ 425 per ton FOB.
2.3.1 The above MEP shall also not be applicable to:-
(a) Exports of non-basmati rice for which letter of credit has been opened till 09.10.2007; and
(b) Rice brought into the port godowns for export till 10.10.2007, as certified by port authorities."
DGFT Notification 45 (RE - 2007)/2004-2009, Dated: October 30, 2007
The original Notification of has been amended five times in last 15 days. Imagine the confusion in the trade and Industry. Can't a Notification be drafted in one go taking all factors into consideration together? Just see the list...
Notn 40 Amended entry at Sl No 45AA
Notn 42 Inserted a new para 2.1
Notn 43 Inserted a new para 2.2
Notn 44 effective date has been amended to 10.10.2007
Notn 45 Inserted a new para 2.3