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Customs to clear rice shipment pending sample tests against bank guarantees.
Oct 11, 2022

Customs authorities in Chennai have come forward to clear rice shipments pending the results of samples drawn from the consignments provided exporters furnish bond or bank guarantees to the tune of 20 per cent of the free-on-board (f.o.b) value of the cereal.
 
In a notification issued on October 7, the Customs Department said the offer was being made as part of trade facilitation measures on request from exporters and their associations in case of wherein samples of rice have been drawn their lab results were awaited.
 
‘Not helpful’
The Customs Department on September 22 came out with a notification saying that authorities will draw samples of rice export consignments as part of government efforts to ensure it was not shipped out in the garb of parboiled or basmati rice.
 
However, a Chennai-based exporter said it would not help them since they have to pay almost 30 per cent of the consignment f.o.b. value as a guarantee. 
 
A trading source said problems have cropped up with regard to shipments of “idli” rice, which actually is parboiled but its white colour raises suspicion of officials since parboiled is a bit yellowish.
 
Problems continue
BV Krishna Rao, President, The Rice Exporters Association, said exporters were still facing problems with rice shipments in transit as also broken rice for which letters of credit were opened before the September 9 curbs by the Government came into force.
 
On September 8, the Centre issued a notification imposing a 20 per cent duty on non-basmati white rice shipments, while banning the export of fully broken rice. Basmati and parboiled rice have been exempt from the curbs. 
 
Options for shippers
The Customs notification said if an exporter opts for clearing the shipment under the bond or bank guarantee (BG)  scheme, the exporter can opt for it at the time of assessment and submit the bond or BG as quantified by the assessment group, which will verify it and mention it in the document. This can then be used to allow the shed officer to permit the shipment.
 
If the shipping bill is not marked for assessment and the exporter submits the bond or BG, then the shed officer can send it for assessment before the consignment is cleared for shipment. 
 
The Centre imposed the curbs on exports as part of its efforts to tame rising prices and to tackle any problem arising out of low coverage of paddy during the kharif season. The other reason for the curbs is that stocks in the central pool dropped to a three-year low. 
    
thehindubusinessline.com

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  • Agricultural and Processed Food Products Export Development Authority (APEDA)
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  • NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016
    Phone : 91-11-41486013, 20863919, 20867008, 20867007