Introduction: Export Agricultural & Processed Food Products
Since the introduction of various export and trade policies, there has been exponential growth in the exportation of agricultural products. The government of India has taken a number of initiatives to ease export businesses in the agricultural sector. The increased production capacity and improved product quality brought about by cutting-edge research-based technology.
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There are various schemes available for the export of agricultural products outside of India, such as the Participatory Guarantee System of India (PGS India), the Ministry of Agriculture and Farmers Welfare, and the NPOP Program, for the exploration of organic food production under APEDA, Department of Commerce, in accordance with food safety standards.
The government regulatory body, which is the Agricultural and Processed Food Products Export Development Authority (APEDA), is the regulatory body under the ministry of commerce that is responsible for the export of agricultural products outside India. With the introduction of the APEDA, an increase in the export of agricultural products has been found, and it has emphasized organic farming in the nation and a reduction in the use of chemicals, pesticides, and industrial fertilizers (GMOs). The certification grants the exporter's goods authorization and a tag to sell their products at a valued price in the international market. Let's look at the certification processes for the export of agricultural products outside India.
Licensing Procedure For The Export Of Agricultural & Processing Food Products From India
- Quality standard Certification
The agricultural and processed foods being exported from India must require to be registered for export purposes with certification from the appropriate authority for the quality of the food products being exported from the country, along with the certification from the authorized body for the the importing nation regarding the quality and quantity of goods being exported from India to that country and fixing the legitimacy of the products being exported
- IEC and DGFT certification
The import-export code is provided to the businesses being transacted outside of India through the regulatory body, the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India. However, there are certain exceptions to the authorization of the IEC license. It minimizes the cumbersome trading mechanism and eases the export processes for the exporters.
- GSP Licensing
The GSP stands for "Generalized System of Preferences," and it was established in 1971 by the United Nations Conference on Trade and Development (UNCTAD) with the goal of bringing about change and lifting developing and underdeveloped countries. It is an autonomous commercial organization with the goal of developing, regulating tariffs, providing preferential treatment to developing and underdeveloped nations, and making export markets easier to access than those of developed nations. The Indian nation benefits indirectly through the benefits provided to importers through the duty-free entry and reduced tariffs of eligible importing nations. Indian products are now competitive with those from developed countries due to the reduction in import duties.
- Issuance of Certificate of Origin (COO)
The following are the organizations that are authorized for the issuance of the Certificate of Origin (COO) under the generalized system of preferential tariff
- From the Export Inspection Council of India (EIC) ensures the quality and safety of the products to be exported from the Indian Nation, with its various agencies for all the exporting goods.
- Directorate General of Foreign Trade (DGFT) through the regional offices set up through the joint/deputy director general for all exporting goods.
- DGFT is set up at prominent locations for the products being exported outside India for the products developed by the EOUs or EPZs.
- The marine export development authority at the regional offices is set up throughout the nation for the export of marine products.
- APEDA License
The National Program for Organic Production (NPOP), in collaboration with the Agricultural and Processed Food Export Development Authority (APEDA), is the government agency in charge of providing organic food certification as well as framing rules and regulations for the establishment of organic food products. Standard operating procedures ensure that the producer adheres to minimum standards such as the use of natural and no chemicals in agricultural product production; the same minimum standard must be followed for two to three years before the cultivated products are considered organic and certified as such. There will also be different types of organic standard labeling for agricultural products. The labeling shall be done as per the organic grade of the products. The APEDA licenses remain valid for the period of three years from the date of authorization with the strict condition of the following of the NPOP norms,’’
- FSSAI Registration Certificate
The FSSAI registration is governed by the Food Safety and Standards (FSS) Act, 2006, a single national body that provides detailed information for the food grade, ensures the conformity of standards for food and consumable products, and avoids any ambiguity in the minds of merchants, traders, and exporters looking to export their products from India.
FSSAI licenses are issued to businesses in three categories based on their standards and investment in the business. Furthermore, the purpose of the FSSAI license, such as domestic sale or export, must be confirmed when the application for FSSAI certification is submitted. The FSSAI license ensures that agricultural products are globally acceptable and that exporting them is simple. The FSSAI license remains valid for a maximum of five years from the date of authorization.
- Import Country authorization
The exporter needs to have import permit from the country to which the products are being exported. However, it differs for different types of products and importing nations. If the importing nation has a trade agreement with India, such as a free trade agreement or a unilateral, bilateral, or multilateral agreement, the exporter can get authorization very easily for the export of their products to such countries.
Documents Required For The Export Of The Agricultural Products And Processed Food Products From India
The agricultural products business operations in India require legal validity for the export of the products outside of India through the registration of the agricultural products with the different licensing authorities. The following are the documents required for the export of agricultural products as per the quality standards of India:
- Company registration certificate
- The Company must have a bank account, GST registration, and PAN for the business operation.
- APEDA registration certificate
- Import-export Code (IEC) and DGFT registration
- Phytosanitary certificates and related documents
- FSSAI License and NPOP authorizations (For organic products)
- Narcotics certifications
- Ministry of agriculture authorizations (For certain categories of products)
- Custom Clearance
- Letter of credit
- Quality check of the goods to be exported
- Bill of Exchange
- Export purchase order
- Proforma Invoice
- Bill of Export
- Certification with the importing nations and finalization of a deal with the Importer before the Start of export of the products.
The export of agricultural products requires a lot of certification and licensing procedures; once those processes are done and the products are ready for export, the export will see a high rise in the value of the goods being exported outside the country. If the agricultural products pass the organic product criteria, which is in high demand throughout the world, that is going to be of great benefit to the nation. However, the time-consuming process may take a long time and create obstacles if procedures are not strictly followed. Connect with us for any information regarding the export of your products outside India and the compliance required for the same.
If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.
Corpseed will be liaising partners for your import/export license requirement and policy/procedures. We can handhold you through the complete licensing formalities with the Director General Foreign Trade (DGFT).
Import Export Code
IEC (Import Export Code) license is mandatory certificate to get before starting any business related to import or export of goods from one country to another. Apply for IEC Code to avoid any penalties from port authorities. No Hidden Fees.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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