DGFT issued the procedure for the allocation of quota for the export of wheat on humanitarian and food security grounds, based on requests received from Governments of other countries

Jun 20, 2023 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Directorate General of Foreign Trade (DGFT) on June 20, 2023, issued the procedure for the allocation of quota for the export of wheat on humanitarian and food security grounds, based on requests received from Governments of other countries.

The applications are invited from exporters of wheat for the allocation of quota in order to maintain objectivity and transparency in the allocation of the quota, the mode of allocation is decided as under:-

• Applications may be submitted through an online portal; 

• Only those exporters are eligible to submit applications who have exported wheat to Nepal in three years previous to FY in which the item was prohibited. 

• Minimum threshold will be 100 MT by land transport to neighbouring country.

• The application would be allowed only if the exporter applies for a quantity more than the minimum threshold. 

• Allocation will be first made on the basis of pro-rata to average export of wheat respectively to the country concerned in three years previous to FY in which the item was prohibited and quantity applied for, whichever is less subject to a minimum threshold.

• Any unutilized quantity will then be reallocated again to the eligible exporters on a pro-rata basis.

Based on the above mode of allocation, the procedure to apply for the export authorization under the approved quota is outlined below: -

• Exporters can apply online through DGFT's ECOM system for Export Authorisations Non-SCOMET Restricted Items (Please refer to Trade Notice No. 03/2021-22 dated May 10, 2021. There is no need to send a hard copy of the application via mail or post.

• The validity of the Export Authorisation will be till March 31, 2024. 

• Online applications filed from June 21, 2023, to June 30, 2023, will only be considered. 

• The documents to be submitted along with the application must include the following:

o Export data for three years previous to FY in which the item was prohibited.

All applicants seeking export authorization for restricted items may apply online by navigating to the DGFT website (https://www.dgft.gov.in)-> Services -> Export Management Systems -> License for Restricted Exports. 

Deficient applications or applications received through the mail or by post will not be considered.

[Trade Notice No. 09/2023]


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