Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is the international organization whose aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival in order to conserve Agarwood trees naturally growing in the forests, Agarwood trees have been included in CITES, which restricts the illegal trade and export of Agarwood, and protects it under its strict regulations. International attention was drawn to the status and trade of Agarwood in the year 1994, when the Government of India submitted a proposal to include it in Appendix II of the CITES. The proposal was accepted during the Ninth Meeting of the Conference of the Parties to CITES, the listing taking effect from 16 February 1995.
As the Agarwood tree population in India has risen due to the domestication of species both in the Northeast and the southern parts of India, the CITES regulation is in the process of getting changed, and export permits and CITES certifications are expected to come into force by the end of 2020.
Since 1991, the export of Agarwood has been prohibited when the export of all Agarwood products including logs, timber, chips, powder, flakes, dust etc., were banned through the EXIM policy in force at that time. The current EXIM policy (1993-2002), published by the Directorate General of Foreign Trade, Government of India, permits the import of Agarwood in different forms including chips, dust and oil. However, the policy maintains the 1991 blanket export ban on Agarwood products grown and harvested in India.
The Negative List of Export of Plants also specifically regulates the export of Agarwood. The Negative List of Export of Plants (as set forth in Notification No. 24 (RE-98)/1997-2002 dated 14 October 1998) being an amendment to the ITO (HS) Classification of Export and Import Items 1997-2002, specifically prohibits the export of Agarwood. The products include plants, plant portions, chips and oil obtained from the forest. The export ban on Agarwood species was re-communicated to parties by way of CITES Notification No. 1999/39.
There are exceptions to the export ban, however, which allow the export of native species included in the Negative List. These include formulations, which are defined as products containing plant portions or extracts in unrecognizable and physically inseparable forms. Native Agarwood can therefore be freely exported in forms such as oil or medicine.
There are exceptions to the export ban, however, which allow the export of native species included in the Negative List. These include formulations, which are defined as products containing plant portions or extracts in unrecognizable and physically inseparable forms. Native Agarwood can therefore be freely exported in forms such as oil or medicine.
Agarwood may be re-exported as value-added herbal products if they are manufactured only from imported material. At the time of export, exporters are required to present an affidavit to the Customs authorities stating that only imported plant materials were used to produce the formulation being re-exported.
The processing units in Assam are required to be licensed by the Commerce and Industry Department. But in reality, in Assam, the Industry Department does not liaise with the Forest Department regarding this. It is not mandatory for processing units to declare their source of supply, which actually comes from only cultivated farms.