The Ministry of Commerce and Industry issues draft of the Ammonium Nitrate (Amendment) Rules, 2017

The Ministry of Commerce and Industry issues draft of the Ammonium Nitrate (Amendment) Rules, 2017

November 3, 2017 Industry Specific 0

The Ministry of Commerce and Industry has issued a draft of the Ammonium Nitrate (Amendment) Rules, 2017 (“Draft Amendment Rules”), vide notification dated 13th October, 2017, to amend the Ammonium Nitrate Rules, 2012 (“Principle Rules”). Suggestions and objections have been invited from all persons likely to be affected, before 27th November, 2017 to be sent to the following address:

  • Additional Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Room No.259, Udyog Bhavan,

New Delhi – 110107; or

 

Key highlights of the Draft Amendment Rules are as follows:

 

Principle RulesDraft Amendment RulesImplication
Rule 14 sub-rule (1)

 

14. Maintenance of records and submission of returns. –

(1) Every person holding a licence granted under these rules for manufacture, conversion, stevedoring, possession, sale, use, transport, import or export of the Ammonium Nitrate shall maintain records in the forms specified in Part 3 of Schedule II to ensure accountability, identification and traceability of Ammonium Nitrate and shall produce such records on demand to an authority specified in rule 50.

Rule 14 sub-rule (1)

 

14. Maintenance of records and submission of returns. –

(1) Every person holding a licence granted under these rules for manufacture, conversion, stevedore, possession for sale or use, transport, import or export of the Ammonium Nitrate shall maintain records in the forms specified in Part 3 of Schedule II to ensure accountability, identification and traceability of Ammonium Nitrate and shall produce such records on demand to an authority specified in rule 50.

 

(1A) The license holder shall enter the particulars on manufacture, conversion, stevedore, bagging, possession for sale or use, transport, import or export of Ammonium Nitrate in the online system made available in the official website of Petroleum and Explosives Safety Organization on day to day basis

A new sub-rule (1A) is inserted.

It provides that the licensee has to enter the mentioned particulars on manufacture, conversion, stevedore, bagging, possession for sale or use, transport, import or export of Ammonium Nitrate in an online system on a daily basis instead of maintaining them in physical form.

Rule 19

 

19. Export of Ammonium Nitrate. –

 

(1) Restrictions on export by air – The Ammonium Nitrate shall not be exported by air.

 

(2) Declaration by exporter or his agent – The exporter … the said officer.

 

(3) Export of Ammonium Nitrate … of rule 9.

Rule 19

 

19. Export of Ammonium Nitrate. –

 

(1) Restrictions on export by air – The Ammonium Nitrate shall not be exported by air.

 

(2) Declaration by exporter or his agent – The exporter or … the said officer.

 

(3) Export of Ammonium Nitrate …rule 9.

 

(4) The exporter shall submit copy of bill of lading and return in Form R-12 to the Chief Controller, on export of each consignment as soon as it is dispatched from Indian sea port or border.

 

A new sub-rule 4 has been inserted to Rule 19. The sub-rule mandates an exporter of Ammonium Nitrate to submit a bill of lading and return in Form-12 to the Chief Controller for each consignment.
Rule 30

 

30. Prior approval before construction of facilities. – (1) A person desiring to obtain a license for manufacture, conversion and storehouse for possession for sale or possession for use, of Ammonium Nitrate, under these rules, shall obtain prior approval from the authority empowered to grant such license, by submitting documents mentioned in rule 33.

 

(2) The District Magistrate while granting prior approval shall return to the applicant one set of plans showing the distances required to be kept clear as specified in rule 12 duly endorsed together with approval.

(3) The Chief Controller or Controller, while granting prior approval, shall return to the applicant one set of plans showing the distances required to be kept clear within and around as specified in rule 12 duly endorsed and an additional set of the said documents to enable the applicant to submit the same to the authority authorized to issue no objection certificate under rule 33.

 

Note: The prior approval … for obtaining license under these rules.

 

Rule 30

 

30. Prior approval before construction of facilities. – (1) A person desiring to obtain a license for manufacture, conversion, stevedore, bag, store for possession for sale or possession for use of Ammonium Nitrate, under these rules, shall obtain prior approval from the authority empowered to grant such license, by submitting documents mentioned in rule 33.

 

(2) The District Authority while granting prior approval shall return to the applicant one set of plans showing the distances required to be kept clear as specified in rule 12 duly endorsed together with approval.

 

(3) The Chief Controller or Controller, while granting prior approval, shall return to the applicant one set of plans showing the distances required to be kept clear within and around as specified in rule 12 duly endorsed and an additional set of the said documents to enable the applicant to submit the same to the authority authorized to issue no objection certificate underrule 34.

 

Note: The prior approval … for obtaining license under these rules

 

 

Under sub-rule (1), a person desirous of obtaining licence to stevedore, bag or store, for sale or use of, Ammonium Nitrate, has to obtain prior approval from authority by submitting requisite documents mentioned under Rule 33.

 

Under sub-rule (2), the term ‘Magistrate’ has been replaced by ‘Authority’.

 

Under sub-rule (3) the applicant has to now submit the set of plans to the authority authorized to issue no objection certificate under rule 34.

 

Rule 34 sub-rule (2) clause (b)

 

(2) (b) The Director General of Mines Safety shall be the authority to grant no objection certificate if the area of the proposed site comes under the Indian Mines Act, 1952.

 

 

Rule 34 sub-rule (2) clause (b)

 

(2) (b) The Director General of Mines Safety or Deputy Director General of Mines Safety or Director of Mines Safety shall be the authority to grant no objection certificate if the area of the proposed site comes under the Indian Mines Act, 1952.

 

The Deputy Director General of Mines Safety or Director of Mines Safety has now been designated as the authority to grant no objection certificate.

 

Rule 34 sub-rule (3)

 

(3) Fresh No Objection Certificate is not required for manufacture or converters/storehouses, which already existing at the site covered under No Objection Certificate issued for the purpose by the District Authority or Director General of Mines Safety or No Objection Certificate issued under the Explosives Rules, 2008

Rule 34 sub-rule (3)

 

(3) Fresh No Objection Certificate is not required for manufacturer or converter or store house or Ammonium Nitrate melt in tank, which is already existing at the site covered under No Objection certificate issued for the purpose by the District Authority or Director General of Mines Safety or Deputy Director General of Mines Safety or Director of Mines Safety or No Objection Certificate issued under the Explosives Rules, 2008

 

 

Now no objection certificate is required for an already existing Ammonium Nitrate melt in tank.

 

Rule 36

 

(4) Every application for the renewal of a license shall be made so as to reach the licensing authority or the authority empowered to renew the license on or before three months (i.e. 31st December) before the date on which the license expires together with the license fees:

Provided that the application received after the 31st December till the date of expiry of the license shall be treated as late application and the licenses shall be renewed with the late fees equivalent to one year’s license fee.

 

(5) If the application for renewal … the license shall stand expired.

 

(6) The same fee shall be charged for the renewal of a license for each year as for grant thereof.

(7) Where a license renewed for more than one financial year is surrendered before its expiry, the renewal fee paid for the unexpired portion of the license shall be refunded to the licensee:

 

Provided that no refund of renewal fee shall be made for the financial year during which the licensing authority received the renewed license for surrender.

 

(8) When a license … sent to the Controller having jurisdiction.

Rule 36

 

(4) Every application for the renewal of a license shall be made so as to reach the licensing authority or the authority empowered to renew the license on or before the date on which the license expires:

Provided that if the renewal application together with complete documents is received by the licensing authority after the date of expiry of the license but not later than six months from the date of its expiry; and if the licensing authority is satisfied that the reason for the delay was beyond the control of the license holder, the license may, without prejudice to any other action that may be taken in this behalf, be renewed on payment of the late fee equivalent to one year’s license fee.

 

(5) If the application for renewal … license shall stand expired.

 

(6) The same fee shall be charged for the renewal of a license for each year as for grant thereof.

 

(7) Where a license renewed for more than one financial year is surrendered before its expiry, the renewal fee paid for the unexpired portion of the license shall be refunded to the licensee:

 

Provided that no refund of renewal fee shall be made for the financial year during which the licensing authority received the renewed license for surrender.

 

(8) When a license … shall be sent to the Controller having jurisdiction.

 

(9) No license shall be renewed if the application for renewal is received by the licensing or renewing authority after six months of the date of its expiry.

 

(10) An application for renewal received after six months of the expiry of the license shall be considered as an application for a new license and in such case, all the documents required for grant of new license including No Objection Certificate issued by District Authority shall be submitted to the licensing authority for grant of new license

 

An application for renewal of licence can now be submitted any time before the expiry of the licence.

 

An application for renewal of licence received after six months of the date of its expiry shall be renewed and treated as if it is a new license and all the documents required for grant of new license including No Objection Certificate issued by District Authority shall have to be submitted to the licensing authority.

 

Source: The Ministry of Commerce and Industry

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