Lok Sabha Question No. 728 (UNSTARRED), answered on 2024-02-07
Subject: Illegal Import of Arecanut
Ministry: COMMERCE AND INDUSTRY
Asked by: Nalin Kumar Kateel, Rajmohan Unnithan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 728 ANSWERED ON 07/02/2024

## ILLEGAL IMPORT OF ARECANUT

## 728. SHRI NALIN KUMAR KATEEL: SHRI RAJMOHAN UNNITHAN:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government is aware that Arecanut is illicitly transported into India through airports, utilizing domestic supply routes;
- (b) if so, the details thereof;
- (c) whether the Government is taking any appropriate measures to check the illegal transport of Arecanut through airports;
- (d) if  so,  the  measures  that  are  being  taken/to  be  taken  by  the  Government  to  protect  the interest of the arecanut growers of India especially from Kerala; and
- (e) the current status of Arecanut import/export in India?

## ANSWER

okf.kT; ,oa m|ksx ea=ky; esa jkT; ea=h ¼Jherh vuqfiz;k iVsy½

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) & (b) The  Customs  Field  Formations  and  Directorate  of  Revenue  Intelligence  (DRI) under Central  Board of  Indirect  Taxes  (CBIC)  as  well  as    State  Commercial  Tax  Departments keep constant vigil for illicit transportation of arecanut into India through air/sea & land ports and take  appropriate  actions  as  per  the  provisions  of  law  to  prevent  imports  through  adoption  of various deceptive methods.

The details  of  seizure  of  arecanut  attempted  to  be  illegally  imported  or  being  smuggled effected  through  airports  and  air  cargo  made  by  Customs  Field  Formations  during  the  last  two financial years are as follows:

| Financial Year   |   No. of Cases | Quantity seized (in Kg)   |   Value (in Rs. Crore) |
|------------------|----------------|---------------------------|------------------------|
| 2021-22          |              4 | 15,296                    |                   0.52 |
| 2022-23          |             12 | 14,188                    |                   0.56 |

(c) & (d) The  CBIC,  through  its  Field  Formations  and  DRI,  keeps  a  strict  vigil  at  the possible areas prone to illegal transportation of arecanut and take appropriate action in accordance with the provisions of the Customs Act, 1962.

In addition, the Government of India have also taken the following measures to restrict the illegal import of arecanut into the country and to protect the interest of the arecanut growers of the country (including Kerala):-

(i) Stringent  adherence  of  quality  standards  by  field  offices  of  Food  Safety  and Standards Authority of India (FSSAI) before clearing the import consignments.

(ii) Strict  examination  of  the  'Rule  of  Origin  (RoO)  of  arecanut  by  Customs  Field Formations to ensure that arecanut grown in countries other than SAARC is not imported through our neighbouring countries taking advantage of import duty exemption under trade agreements.

(iii) Import of Arecanut into the country is restricted through an Import Duty of 100% which is the Bound Rate of Duty.

(iv) The  Government  have  also  revised  Minimum  Import  Price  (MIP)  to  curb  the unabated import of arecanut into the country and thus to prevent entry of inferior quality arecanut into Indian markets and destabilizing the domestic prices.  Accordingly, import of arecanuts (under ITC HS Code: 080280) and 'betelnut products known as Supari' (under ITC HS Code: 2106 9030) are 'free' if CIF (Cost, Insurance & Freight) value is equal or above the revised MIP value of Rs. 351/- per Kg. and the import of such products have been 'prohibited' if CIF value is less than Rs. 351/- per Kg.  The MIP conditions shall not be applicable for imports by 100% Export Oriented Units (EOUs) and units in the Special Economic  Zones  (SEZs)  subject  to  the  condition  that  no  Domestic  Tariff  Area  sale  is allowed.

(v) CBIC  periodically  revises  the  Tariff  Value  for  import  of  arecanut.    The  Tariff Value is presently at USD 8140 per MT [vide CBIC Notification No. 09/2024-Cus.(NT) dated 31.01.2024] and the Basic Customs Duty is 100% ad-valorem.

(e) The details of import and export of arecanuts (ITC HS Code: 080280) into India during the last three years and current year are given as under:-

(Quantity in MT & Value in USD Million)

| Financial               | Import   | Import   | Export   | Export   |
|-------------------------|----------|----------|----------|----------|
| Year                    | Quantity | Value    | Quantity | Value    |
| 2020-21                 | 23,988   | 68.41    | 854.69   | 4.65     |
| 2021-22                 | 25,979   | 90.18    | 6,663    | 21.21    |
| 2022-23                 | 73,983   | 258.19   | 13,765   | 60.00    |
| 2023-24* (April - Nov.) | 30,271   | 118.45   | 8,208    | 36.14    |

Source: DGCI&S (* provisional data)

In  addition, the Government, vide Notification No. 36/2015-2020 dated 28 th September, 2022 read with Notification No. 17/2023 dated 3 rd July, 2023, has allowed import of 17,000 MT of fresh (green) arecanut from Bhutan every year without MIP condition and such imports are allowed only through LCS Jaigaon (INJIGB) and LCS Chamurchi (INCHMB) and such imports are subject to a valid port-specific Registration Certificate issued by the Directorate General of Foreign Trade (DGFT).

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