Customs retains in abeyance controversial order on parboiled Basmati in Punjab

The Customs Commissionerate of Ludhiana has stored in abeyance a controversial order issued earlier than a set of three holidays, which allegedly led to the piling up of a number of containers of Basmati rice booked for cargo to West Asian nations.

A public discover (no. 04/2024) issued January 31, and signed by the Commissioner, Vrindaba Laxmansinh Gohil, stated: “It has been determined to hunt clarification within the matter from the CBIC, New Delhi and until clarification is obtained, the Public Discover dated January 25, 2024 could also be stored in abeyance.”

The Customs Commissionerate has obtained representations on the discover, concerning the levy of export responsibility on ‘Parboiled Basmati Rice’.

Needed directions have been issued to the (inland) port officers for commerce facilitation, and all stakeholders have been instructed to convey to the division’s discover any difficulties they could face.

The agri export promotion physique APEDA had intervened to resolve the problem after the goof-up on the inland container deport (ICD), Ludhiana, which led to 30-40 containers of Basmati rice getting caught for just a few days.

25 containers examined

In line with the Customs Commissionerate’s January 25 discover, export of rice consignments of all varieties had been subjected to ‘Sampling and Testing’ earlier than grant of LET Export Order. Its floor officers had been requested to make sure that samples are drawn and take a look at studies are obtained inside 48 hours from the Customs Home Laboratory.

However exporters couldn’t get the testing completed given the three holidays. Consequently, containers obtained piled up, regardless that testing was not required. The Punjab Rice Millers Exporters’ Affiliation took up the matter with APEDA which, in flip, scontacted the Customs authority and defined the proper place.

“For greater than 20 years, Basmati rice, whether or not uncooked or parboiled, has been exported below HS Code 10063020 till this public discover was issued. When Customs out of the blue opts for an additional HS Code for parboiled Basmati rice, it’s questioning all of the clearances made previous to issuance of the January 25 public discover. Altering and creating HS code, basically, is a coverage proposal, and shouldn’t be tinkered with,” stated S Chandrasekaran, a overseas commerce coverage professional.

Trade leaders stated as a lot as 80 per cent of India’s Basmati exports is shipped to West Asia, and 90 per cent of that is in parboiled type. Whereas Punjab primarily exports Basmati rice via Kandla and Mundra ports, Vishakhapatnam port is most popular for cargo of non-Basmati rice.

The federal government has levied 20 per cent export responsibility on parboiled non-Basmati rice and never on parboiled Basmati rice, an exporter defined, referring to the DGFT notification.