Trade Policies
Spices Board regularly gives its opinion to the Government while the latter formulates trade policies and position papers for discussion at international forums like WTO, Codex Alimentarius Commission, EU, USFDA and such others.
 
IMPORT POLICY
Exim Policy
Import Duties
IMPORT TARIFF FOR SPICES FOR THE YEAR 2004-2005
Items listed under edible vegetables
Items listed under essential oils/oleoresins
 
 
Country Information
(Source: Report from Indian Missions abroad)
 
Lebanon - Complex system of Export & Import Licence. Parsley, Mint, Coriander, Thyme are banned for import. Import Licence compulsory for mustard from Ministry of Foreign Trade. All Foodstuffs must bear specific labels having manufacturing & expiry date, country of origin etc.
Israel: Certification of Food Exports to Israel
1. The Import Department of the Food & Nutrition Services of the Israeli Ministry of Health issued in February 2004 new procedures governing food imports.

2. According to the procedure, importers are required to submit a document from the official authority ( a governmental authority, or an authority recognized by a government agency) of the country of origin of the product to be imported. Certifying that the production plant operates under the supervision of that same official authority.

3. In the absence of the official authority's certificate, importation of the food product in question will be prohibited.
Tanzania:
Destination Inspection Introduced:

Tanzania has decided to terminate the Pre-shipment Inspection (PSI) programme and replace it with Destination Inspection (01) with effect from January 2004. This new 01 programme implementation will involve a critical 6-month transition from January 1 to June 30 in order that importers come into full compliance by July 2004.

Reaistration of Pre-packaaed Food:

The Tanzania Food and Drugs Authority (TFDA) which was established last year, has brought in some changes in the existing rules for manufacturing, importation and sale of prepackaged food. In accordance with Section 28(1) of the Tanzania Food, Drugs and Cosmetics Act, 2003, no person shall manufacture or import, sell or expose for sale pre-packaged food unless that food has been registered by the Authority.

Hanoi:
Vietnam is one of the fastest growing economy in Asia with average GDP growth rate of 7.4% over the past 10 years. In fact, Vietnam is now the fastest growing economy among the ASEAN countries. Such fast economic growth rate has helped Vietnam to reduce its poverty rate. In 1993, the World Bank said Vietnam had 58% of its population living under poverty line but by 2003, Vietnam's poverty rate fell to 11 % (according to Vietnam Government even though World Bank figure is 16% ) with more than 300,000 households escaping from poverty. The country expects the figure will be reduced to 8.3% in 2004 and 7% in 2005.

Vietnam (the largest exporter of Pepper) exported around 30,000 tons of pepper in the first four months of 2004, earning US$ 42 million or year-on-year increases of 20.6% and 19%, respectively.
PRIOR NOTICE DOCUMENTATION TO USFDA
Prior Notice confirmation receipt must accompany each shipment of food to USA including sample shipments for U.S. Customers and trade shows. The exporter I agent to file proper prior notice, failure to do so may result in refusal of shipment at U.S. port of entry.
For instructions and prior notice forms, please visit http://www.FDARegistrar.com

Time extended for FDA Reaistration

As per the original schedule, the last date for registration of food facility with USFDA was December 12, 2003. Now FDA has decided to give a grace period of 8 months, until 1 ih August 2004, so that the users are familiar with the new system in place. FDA has also assured that shipments failing to alert the agency in advance would not be turned away until 12 March 2004.

The compliance guide on registration and prior notice are available on the FDA website.
http://www.foodnaviqator.com

BAHRAIN: IMPORT REGULATIONS

1. Based on the articles of the GCC Unified Custom Union, Bahrain has implemented charging 5% duty for all goods entering the GCC. The goods charged 5% duty at one port of entry are not dutiable through the GCC states.

2. According to Consumer Protection draft Lawall suppliers and importers of foodstuff in Bahrain must show details of contents, expiry date, place of origin and price on the cans or packages in English and Arabic. Violators face two years in jailor a minimum fine of BD 2000 and repeat offenders risk losing their license.

The Non-Tariff barriers affectina the spice trade in maior markets

USA

Almost all spices have preferential treatment except spice oils & oleoresins for which duty under clause special 301 is imposed at the rate of 6%. USFDA regulate the spice import into the country. Denial entry for not complying to the required standards and quality and product reconditioning are strict.

The proposed Bioterrorism Act 2002, if implemented would further regulate the spice trade on the basis of which source and routing of the spices exported to USA are to be notified in advance by the importers.

The new US customs security regulations /States that all cargo being exported into USA need to be approved by the US Customs as Non-Hazardous, non dangerous, harmless in any manner to anyone and edibles being certified as "fit for human Consumption" .This Advance Manifest Rule will cause undue delay and harm the reliability of the supplier and end up in denial of consignments by the importer.

EU

There is no EU legislation for all herbs and spices. Irradiation/steam treatments are allowed. However all the processing/treatments of spices are to be recorded and labeled. Spices and herbs are allowed to import under the GSP scheme on certificate of origin. No tariff for movement of cargo between the member countries VAT is different in each member countries.

EU has strict Health & Hygiene rules for import of spices such as Black pepper & Red Chittlies. Quality testing procedure also differs among member countries. The new regulation on Food Safety Alert might affect the spice trade due to the main issues like tracebility, cross contamination.

CENTRAL EUROPE & BALTIC COUNTRIES

Central Europe and Baltic countries such as Poland,Hungary,Czech Republic, Republic and Slovakia have stringent health rules for spices mainly issues like microbial Imould count to be free from salmonella & E-coli Bacteria.

AUSTRALIA

Under Australia's new quarantine and inspection process, all the imported agricultural commodities must have an import risk analysis (IRA) carried out to determine the commodities risk of introducing pests and diseases into Australia. Australia's acceptable level of protection is very near zero risk. The Australian Government Analytical Laboratory is not disclosing the method of analysis followed by them contending that it is an intellectual property and cannot be disclosed to others.

The reported presence of pesticide residues has become a major trade barrier against export of spices from India to Australia. Analytical results obtained in laboratories in India and those in Australia are found to vary relating to the same shipments. The Spices Board has taken up the issue with the Australia New Zealand Food Authority and on sequently the authorities relaxed the inspections.

The current MRLs for spices appear to be too stringent considering the minuscule average daily intake of the same and the MRLs allowed for staple foods consumed in Australia. The Board has also got in touch with the Food & Beverage Importers Association(FBIA) and it is understood that the Australian Food Law has the provision to amend the food laws to share the testing procedures and food standards to other countries based on scientific data submitted by the trade.

WANA

Tariff is free or liberal in almost all countries. But Packaging & labeling requirements are strict. Foodstuffs are not allowed to be imported without a prior permission and a health certificate from the concerned government bodies. Eventhough WANA countries are following low tariff structure the free trade agreements am'ong member countries and the proposed Common Customs Union among GCC countries would reduce India's share in this region.

LAC Countries

Trade liberalization among LAC countries and USA and MFN status among regional groups exist. Tariff is high. Other levies like VAT/Freight Tax/Port handling charges are high. Duty free entry of spices between NAFT A countries USA, Mexico & Canada affect Indian export of value added spices. Most of the LAC countries are following the AST AIESA specifications for spices which is again acting as trade barrier.

SAARC

Tariff Negotiation between India and the SAARC countries have encouraged the import of spices than export to these countries. Import restriction on essential/ sensitive items in Sri Lanka - Land tax / import duty differs in Bangladesh. Additional levy / sales tax of 15% in Pakistan apart from Tariff.

JAPAN

Tariff on retail packing / bulk packing differs. Food and Sanitation Law is very strict. Imported spices are subjected to Plant Protection and Sanitation Law. As per Protection Law and Measurement Law, spices sold in small containers must be labeled.

(For website link:)

CBI, Centre for the Promotion of Imports from developing countries, P.O. Box 30009, 3001 DA Rotterdam, The Netherlands, has developed a database on European non-tariff trade barriers. The AccessGuide is designed for exporters and trade promotion organisations from developing countries. AccessGuide informs you on non-tariff trade barriers related to environmental, social and health and safety issues.
For more information take a look at URL: http://www.cbi.nllaccessquide or ask for more details and e-mail toaccessquide@cbi.nl.

For more information take a look at
URL: http://www.cbi.nllaccessQuide or ask for more details and e-mail toaccessQuide@cbi.nl.

TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY(PART-1 SECTION-1)
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY

PUBLIC NOTICE NO.47(RE-2003)/2002-07
NEW DELHI:the 9th February,2004

In exercise of powers conferred under paragraph 2.4 of the Export and Import policy,
2002-07, and paragraph of Handbook (Vol.1), the Director General of Foreign Trade hereby notifies the revised DEPB rate of the items as annexed to this Public Notice.
This issue in public interest.


(L.Mansingh )
Director General of Foreign Trade


( F.NO.01/83/162/288/AM03/DES-VIII/Vol-VIII )




Annexure to PUBLIC NOTICE NO. 47 (RE-2003)/2002-07 Dated 9.2.2004

CONTENTS
Pages No.
General lnstructions for            :1-2
DEPB rates.


GENERAL INSTRUCTIONS FOR DEPB RATES


I. The rates of DEPB specified in book shall not be IIpplicable to export of II commodity or product if such commodity or product is:-

a) Manufactured partly or wholly in a warehouse under Section 65 of tho Customs Actl, 1962 (52 of 1962) .

b) Manufaeturcd and/or exported in discharge of export obligation against an Advance Licence including Advllnee Licence fdr Annual Requirement or exported under DFRC scheme of relevllnt EXIM- Policy.

c) Manufaclured and/or exporled by a unit licenced as hundred percent export oriented unit in tenns of Ihc provisions of the relevant imporl and export Policy;

d) Manufactured and/or exported by any of the units situated in free trade zones /Export Processing Zonel Special Economic Zones I EHTP Schcme;

e ) Exporls of goods of foreign origin, unless the goods have been manufactured or .
reprocessed or on which simililf operntions hllve becn cllrricd out in India.

f) Exports made under paragrnph 2.35 IInd 2.36 of the EXIM Policy.


2. Thc DEPB rate and the value cap shall be applicable as existing on the date of order of "let export" by Ihe Customs.

3. The vallie cap, wherever existing shall be with reference to the FOB value of exports. The DEI'B rale shall be applied on the FOB villue or vulue cap whichever is lower. For example, if Ihe FOB v;lIue is Rs.500/- per piece, and the value cap is Rs.300/- per piece, the DEPB rate shall be applied on Rs.300/-.

4. Wherever any specific rate exists for a Particular item under DEPB rate list as given in this book the items shall not he covered under any gelleric description of the DEPB rate list.

5. The DEPB rate aims to neutralisc the incidence of duty on thc inputs used in the export product. Therefore, the DEPB rates as given in this book refer to normally
tradable/exportable product. Items such as gold Nibs, Gold Pen, Gold watches etc. . though covered under Ihe generic description of writing instruments, components of writing instruments ami watches arc thus not eligible for benefit under the DEPB scheme.

6. The DEPB rates given for various galvanised Engineering product shall cover non galvanised produels and vice-a-versa.

7. Thc DEPB ratle given for various types of garments do not cover Silk as well as woollen garments unless specifically mentioned in the DEPB description.

8. Portahle Produels at S.No.239. 240, 241, 242, 243 and 286 of Product Group: Engineering (Product Code 61) exported in the form of incomplete CKD/SKD Kit, but consisting of (I) Engine (ii) Chassis (iii) Gear Box (iv) Transmission Assembly system (v) Axlc (Front & Rear) and (vi) Suspension System or Body/Cab or both shall be treated at par with complete CKD/SKD Kit for the purpose of relevant DEPB benefits.

9. The DEPB rate for formulations consisting of more than one bulk drug would be calculated as per provisions of Policy Circular No.20 dated 31'1 July, 2000.

10.Wherever the export of resultant product in completely built form is allowed under DEPB, the CKD/SKD export of sueh product shall also be allowed under DEPB.

11.DEPB benefit would also be admissible on the export. of composite product including assembled product having more than one constituent items for 'which DEPB rates are individually fixed. In such cases the DEPB entitlement would be restricted to the lowest of the rate applicable to the constituent items ignoring the 'rate of the constituent item(s) having weight less than 5% of the total net weight of such product. However, no DEPB benefit would be admissible on the export of such product, if any constituent item(s) is weighing more than 5% of the total net weight (of the product) and does not have any DEPB rate fixed.

The exporters shall declare in the shipping bill the following details also for claiming DEPB benefit on the export or such product :-

i) Description of the composite product including the assembled product, along with its total net weight.

ii)Description of all the constitute item(s) of such products which attract a DEPB rate with their respective DEPB Nos. and their credit rate along with total weight of such constituent(s).

iii)Description and combined tolal weight of those constituent item(s) which have no DEPB rate in the schedule.

(Explanatory Note)

In case (iii) above is more Ihan 5%. of total wcight given in (i), no DEPB on the composite product would be admissible. For the purpose of determining the eligibility of
entitlement to DEPB under this entry, a self-declaration to be furnished by the exporter to this effect will be accepted by the Customs Authorities. In case of doubt or where there is any information contrary to the declarations. the authority, shall resort for physical verification with regard to such declarations.

DEPB benefit would be available on the export of products having extraneous material uplo 5% by weight. In such cases, extraneous material upto 5% shall be ignored and the DEPB rate as notified for that export product shall be allowed.

 
PRODUCT GROUP: MISCELLANEOUS PRODUCTS PRODUCT CODE: 90
 
Sub: DEPB benefits revised
.........
The Director General of Foreign Trade, New Delhi vide Public Notice No.4? dated 9th February 2004 has amended its earlier notification on DEPB benefits based on packing material of the export product. Accordingly the DEPB benefits
to the exporters as revised are given below:
PRODUCT GROUP: MISCELLANEOUS PRODUCTS PRODUCT CODE: 90

Import Tariffs


IMPORT TARIFFS FOR SPICES & HERBS IN EU COUNTRIES

Imports trom countries which are considered "least developed Countries "can enter the ED at a Zero tariff rate.

The conventional duties mentioned vary in different periods Of import during the year.

VAT rates extra and differs in each member country.


BANGLADESH



Brazil

Canada


Saudi Arabia

Singapore

Japan

Mexico


Malaysia


Pakistan


Russia


South Africa


Srilanka