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 UPDATED ON 11-1-2021

27-09-2021

 

The Guidelines By CBN, India for Registration of sales Contracts for import of poppy Seeds from Turkey Released in their official website on (25-06-2019). We have added our explanation for the importers to understand it better.

  I. Determination of Country Cap

The country cap for the purposeof import of poppy seeds from Turkey shall be approved by Department of Revenue on the basis of recommendation by a Committee comprising Narcotics Commissioner, one representative or Directorate General of Foreign Trade (DGFT) and one representative of Department of Revenue. The country capwill be basedupon stock and production of poppy seeds as communicated by the Turkish Grain Board(TMO) or Turkish Embassyin India.

 Important Note: Online system will be opened once after the determination of the Country Cap by the Indian Government.

 APPLICATION FOR REGISTRATION OF SALES CONTRACT

(a)  The exporting company in Turkey shall get the sales contract registered withTMO. Once the sales contract is registered with TMO, Indian importer may approach Narcotics Commissioner for registration of his sales contract by filing application in the manneras specified by Narcotics Commissioner. Narcotics Commissioner may mandate filing oforiginal/attested copy of documents as may be felt necessary.

Narcotics Commissioner shall register the sales contract if the importer fulfils the following conditions:

The importer shall filean application for registration of sales contract for import of poppy seeds in the prescribed format as per Annexure “,t” along with the documents as listed in

Annexure “B”.

 (b)   The genuineness of existence of importer is verified. Such verification can be done by Narcotics Commissioner on the Basis of documents as submitted along with the application. However, if the importer has not got registered his sales contract for import of poppy seeds in the last three financial years, verification of genuineness of existence of importer shall be got done through physical verification.

 (c)    Each applicant shall be allowed to registerquantity applied for or 25 containers (450 MT) whichever is less during the currency of a crop year. However, during a particular

Crop year (from 1st July to 30th June) each applicant shall be allowed to file maximum six applications beginning from 1^st July of that year till 31^st March of next year. However, for the crop year 2018 -19.  No application for registrationof sales Contract will be entertained on or after 15^thJuly, 2019 and all Such sales contract registration shall be validfor shipment from Turkey till 31^stJuly, 2019 only.

 Narcotics Commissioner will register sales contracts only within the quantity limit (country cap), for a particular crop year asfixed in termsof Para-1 above.’

Important Note:  T.M.O will register the Sales Contract in Turkey only after

Indian Government Officially announces the Country Quota, not before that. 25 Container (450 tons) per Importer can be changed to 5 Containers (90 tons) also by the committee.

 PROCEDURE

Once the application is received by Narcotics Commissioner, requesting for registration of sales contractfor import of poppy seeds from Turkey, the officeof the Narcotics Commissioner shallverify the fact of registration of sales contract by TMO (through online system maintained by TMO).

 If the sales contract is found to be registered by TMO, Narcotics Commissioner will grant provisional registration to importer if condition as specified in Para —II are fulfilled. Such provisional registration will be sent to the importer and the online system maintained by TMO shall be updated accordingly.

 The applicant importer, on receiving provisional registration will be required to open Irrevocable Letter of Credit (ILC) in favor of Turkish Exporteror make advancepayment to the extent or minimum not of total contract value of qty. allowed to be registered in provisional registration.

 Explanation: Contract value for the purpose of this clause will be computed proportionately in case quantity allowed to be imported under provisional registration is less than the quantity indicated in tie sales contract'

 (i v)   The applicant importer shall again approach Narcotics Commissioner within 21 days of issue of provisional registration along with proof of Advance Payment/opening of ILC through his bank' office of the Narcotics Commissioner within 10 working days on receipt of proof of advance payment/opening of ILC shall issue registration for import of poppy seeds from Turkey to the importer and update the online system accordingly. lf such a proof of advance payment/opening of Letter of Credit is not received by the office of the Narcotics Commissioner within 21 days from date of issue of provisional registration, the provisional registration will be deemed to be cancelled and accordingly application will be considered to have been rejected

 (v)     The applicant importer shall have an option to open ILC/Make Advance Payment and submit proof to Narcotics Commissioner along with the application as prescribed in Para (Il) (a) ln such a case' sales contract registration will be issued to applicant importer directly without the stage of issue of Provisional Registration

 Important Note: Minimum advance amount of 20% of the contract values has to be paid in order to get registered with T.M.O. the proof of payment to be submitted to T.M.O to make sure that the business is genuine. The Exporter will have to prove that he has the cargo in his warehouse so that the contract is honoured on time.

 VALIDITY

An application for import of Poppy Seeds can be filed in terms of Para II (a) on or before 3lst March of particular year except for the current crop year 2018-19. No application shall be entertained during the period from 1^st April to 30^th June of a particular year except in the current crop year 2018-19.

 All sales contract registration done by the office of Narcotics Commissionerduring the particular crop year shallbecome invalidon 1^st July. Accordingly, the sales contract registration granted by office of NarcoticsCommissioner during a particular crop year shall be valid for shipment till 30th June of that particular crop year.

SURRENDER OF REGISTERED QUANTITY

An applicant, after registration of sales contract, may surrender part or full of registered quantity by communicating in writing and received by Narcotics Commissioner within a period of 30 days from date of issue of such registration.

 PENALTY FOR NON-PERFORMANCE.

If an importer fails to import a minimum of 5oB of the quantity registered for import, less the quantity surrendered, tie shall be debarred from registration of sale contracts for a period of the subsequent two crop years.

 An applicant who has been granted provisional registration under Para III (ii), if fails to submit proofof advance payment/opening of Irrevocable Letterof Credit in terms of Para UI(iv), he shall be debarred from making further application for sales contractregistration during the course of that particular crop year.

 An applicant who has been granted provisional registration under Para III (ii),if fails to submit proof of advancepayment/opening of Irrevocable Letter of Creditin terms of Para III(iv) for twoconsecutive cropyears, he shall be debarred from making further application for sales contract registration for subsequent two crop years.

 

 

 

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