SONAM PENJOR | Thimphu
In response to a request from the Royal Government of Bhutan (RGoB), the Government of India (GoI) has made an amendment to its import policy.
This exception will allow the import of 10,000 metric tonnes (MT) of marble from Bhutan under Indian Trade Classification (ITC), Harmonised System (HS) Codes 2515 and 6802 on an annual basis without a Minimum Import Price (MIP).
The notification was issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, GoI on 14 March.
According to the notifications, “It is in the exercise of powers conferred by section 3 read with section 5 of FT (Development and Regulation) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy, 2015-2020, as amended from time to time, the Central Government hereby amends the Policy Condition No. 3 of Chapter 25 and Policy Condition No. 1 of Chapter-68 of schedule-I (import policy) of ITC (HS), 2022 with immediate effect.”
Sub-section (a) of Section 2.01 of Foreign Trade Policy, 2015-2020 of India states that exports and imports shall be ‘Free’ except when regulated by way of ‘prohibition’, ‘restriction’ or ‘exclusive trading through State Trading Enterprises (STEs)’ as laid down in ITC (HS) of Exports and Imports. Further, sub-section (b) of the policy states that there are some items that are ‘free’ for import/export, but subject to conditions stipulated in other Acts or in law for the time being in force.
It should be noted that, prior to this, the GoI had, with effect from October 1, 2016, introduced a MIP policy condition for the import of marble slabs into India (including from Bhutan), at the Cost Insurance Freight (CIF) value of USD 40 or above per square meter (for the maximum thickness of slab of 20 mm).
Bhutanese marble is invoiced for around Nu 1, 290 per square metre, which is less than the MIP of USD 40 per square metre, according to information provided by the Bhutanese side. This MIP policy requirement caused the Bhutanese marble sector to halt exports to India in 2020.
In the existing import policy condition, it is said that the import of marble, classified under chapters 25 and 68, from Bhutan shall be subject to a combined annual quota of Nu 1 million square ft. (5882 MT). The quota shall come into effect immediately and shall operate on a financial year basis. Monitoring and allocation of the quota shall be made by the RGoB.
However, in an amended import policy condition, it states that the import of 10,000 MT of marble under ITC (HS) codes 2515 and 6802 shall be allowed annually from Bhutan without MIP, with immediate effect subject to the condition that import permitted with a valid registration certificate issued by the DGFT and this shall operate on a financial year basis.
Meanwhile, the recent decision of GoI to permit the import of 10,000 MT of marble every year from Bhutan without MIP comes as a relief for the Bhutanese marble industry.
