Central Government imposes 20% Export Duty on Parboiled Rice [Read Notification]

On August 25th, 2023, the Central Government issued notifications numbered 49/2023-Customs G.S.R. 628(E) and 50/2023-Customs G.S.R. 629(E), affirmed the imposition of a 20% export duty on parboiled rice with the immediate effect.

This notification followed a previous restriction imposed on the export of non-basmati white rice and broken rice. These restrictions were separately declared in September 2022 and the month before, as a response to the escalating costs of this essential food item.

The Central Government in exercise of the powers conferred by sub-section (1) of section 8 of the Customs Tariff Act, directed that the Second Schedule to the Customs Tariff Act shall be amended in the following manner, namely: -

“In the Second Schedule to the Customs Tariff Act, after Sl. No. 6B and the entries relating thereto, the following Sl. No. and entries relating thereto shall be inserted, namely: -

(1)	(2)	(3)	(4)
6C.	1006 30 10	Rice, parboiled	20%

In accordance with the notification number 50/2023, “In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 55/2022-Customs, dated the 31st October 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 796(E), dated the 31st October 2022, namely:-

In the said notification, -

(i) in the Table, after S. No. 2 and the entries relating thereto, the following S. Nos. and entries shall be inserted, namely: -

(1)	(2)	(3)	(4)	(5)
2A	1006 30 10	Rice, parboiled	Nil	5
2B	1006 30 10	Rice, parboiled	Nil	6

(ii) in the Annexure, after Condition number 4 and the entries relating thereto, the following Condition numbers and entries shall be inserted, namely: -

5

Rate of duty shall come into force on the 16th day of October, 2023

6

(i) Goods meant for export shall have entered the customs station for the purpose of exportation before the 25th day of August, 2023, and an order permitting clearance has not been issued by the proper officer; and (ii) Goods meant for export shall be backed by irrevocable Letter(s) of Credit, wherein the said letter(s) of credit has been opened before the 25th day of August, 2023, and the message exchange date between the Indian and Foreign bank/swift date should be before the 25th day of August, 2023, and such Letter(s) of Credit should have been authenticated by the Recipient Bank.

To Read the full text of the Notification CLICK HERE

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