Export of Rice – DGFT changes policy
The Government has again amended the export policy relating to Rice as follows.
I. Non Basmati Rice: Export of PUSA -1121 variety of Non-basmati rice shall be allowed subject to the following conditions:
1. Grain of rice to be exported shall be more than 7 mm of length and ratio of length to breadth of the grain shall be more than 4; [Do they have equipments to measure the length and breadth of rice in the Customs?]
2. Export allowed subject to registration of contracts with APED, New Delhi, prior to shipment;
3. Export permitted only if the minimum FOB price is US$ 1200 per ton or Rs. 48,000/- per ton;
4. Export will be restricted through the following ports only:- Kandla, Kakinada, Kolkata, JNPT, Mumbai, Mundra, and Pipavav
5. Export shall be allowed with immediate effect, out of paddy procured in KMS 2008-09.
II. Rice of seed quality: Subject to conditions imposed vide Notification No. 32 dated 19th August, 2008.
II. Basmati Rice including (Dehusked (Brown), semi-milled, milled both in either par-boiled or raw condition):
1. Grain of rice to be exported shall be more than 7 mm of length and ratio of length to breadth of the grain shall be more than 3.6;
2. Exports to Russian Federation permitted subject to pre-shipment quality certification issued by Sri Ram Institute for Industrial Research or any other agency as may be notified from time to time.
3. Export permitted only if the minimum FOB price is US$ 1200 per ton or Rs. 48,000/- per ton.
4. Export of Basmati Rice will be restricted through the following six ports only: (i) Kandla, (ii) Kakinada, (iii) Kolkata, (iv) JNPT, Mumbai, (v) Mundra, and (vi) Pipavav
Do they have equipments to measure the length and breadth of rice in the Customs?
Why do they make laws which are difficult to implement? Imagine this. Rice exported is confiscated as the grain size is not of prescribed length 7 mm and length breadth ratio is less than 4. The Commissioner confirms the confiscation. Matter goes to the Tribunal. Imagine the following findings:
The appellant exporter submitted that Rice is agricultural produce and he has no control over the size of the grain. One cannot expect that all rice grains should be of uniform length and maintain length breadth ratio prescribed as it is grown naturally. The samples taken by the department may fail the test, but majority of the rice in the consignment conforms to the standards. We find force in the submissions of the exporter. Revenue has not adduced any evidence that the rice grains in the entire consignment do not conform to the standards prescribed. As rightly argued, the exporter has no control over the size of grains of rice which is grown naturally. Confiscation set aside and appeal allowed, with consequential benefits, if any.
DGFT Notification No. 39 (RE-2008)/2004-2009 Dated: September 16, 2008