Dispute over 20% export duty on parboiled rice holds up over 100 containers in Chennai

More than 100 containers of roasted rice  for export were detained at the Chennai port in a dispute over  payment of the 20 percent export duty that came into effect on August 25. The payment dispute continues despite the clarification issued by the  Ministry of Revenue of the Ministry of Finance on September 6, according to which export tax is not applied to goods that arrived at a port or  container terminal on August 25 before 10:49PM

 More than 100 containers of roasted rice  for export were detained at the Chennai port in a dispute over  payment of the 20 percent export duty that came into effect on August 25. The dispute over  payment continues despite a statement by the  Ministry of Revenue of the Ministry of Finance on September 6 that no export duty will  be charged on August 25 for goods arriving at the port or container terminal before 10:49 pm. According to 6 orders, the goods would be loaded by 10:49 on August 25.  Customs officials in Chennai, who did not want to be identified, told the company that shipments would only be allowed if “data export” orders were approved. “You have to change the  duty to clean the goods,” who did not want to be identified. The official said the shipments not only have to reach the port facilities by August 25, but should have received a “de-export” order. 

 A delaying tactic? 

  According to trade sources, exports would be  duty-free until October 15 if shippers had suppliers. “Then where is the need for the cargo to be in the customs zone” .  Trade analysts said the delay could be one way to delay shipments and limit exports. “The 100 containers that are holding up are only for Chennai. Similar delays may occur at other ports, The Center imposed the 20 percent export tax as part of its efforts to curb rice exports and ensure  domestic market sufficiency. The move comes after it banned  white rice exports on July 20. In September of last year, it prohibited the supply of broken rice. A few days after imposing a 20 percent export tax on parched rice, the government set the minimum export price for Basmati at $1,200 per tonne. 

 India’s efforts to curb exports of the grain have pushed the global rice market  to a 15-year high. The Food and Agriculture Organization estimates that India’s rice exports could fall to a four-year low due to the restrictions. 

  The government imposed a 20 percent customs duty on the export of semi-milled rice  from August 25. The Tax Board explained that shipments that arrived at ports before 10:49 p.m. There is no need to pay customs duty on August 25. But Chennai Customs says that duty-free exports are allowed only if the consignments have received an export permit. As a result, hundreds of containers are saved.

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