Guide for Importers/Exporters regarding License of Agricultural Product

Agriculture and related sectors have witnessed significant growth in recent past. It holds a major contribution towards boosting GDP of the nation. Moreover, through aids of the Indian government, the level of export has significantly grown. This is the reason that India currently is a leading food grain exporter in global market.

However, the exporters need to register with Director General of Foreign Trade or DGFT. It is here to note that DGFT provides them an Import Export Code or IEC number. However, to enjoy discounts and support through an export-import policy, exporters need to register with a relevant agency. In this context, they need to earn a registration-cum-membership certificate.

Key features of Agriculture License in India

Import Export Code or IEC number is considered a must for the exporters and importers.
Exporters can enjoy financial benefits.
It is crucial to let the authorities know about the changes within the activities.
Exporters and importers need to meet the license norms.
However, with the help of various acts, the government has established authorities to boost export of agricultural products.

It is essential for business groups to have registration from regional licensing authority. This is essential for the businesses aiming to do trading of agricultural products. This provides them the Import Export Code or IEC number. Moreover, one can’t obtain clearance from custom department upon not obtaining an IEC number. DGFT or Director General of Foreign Trade issues the IEC number.

Indian government has founded various units for enriching the agro-industry. However, exporters need to register with the concerned export promotion agency to have the aids. These agencies provide them the certificate of registration-cum-membership. Anyway, this is the most important registration need, though one needs several registrations for business operation.

Quality control check is a must for all agricultural products. It is part of the pre-shipment inspection essential before export. However, those with ISI certification or Agmark don’t need to follow this. This rule follows the act of quality control and inspection act, 1963. These products need to have proper labels.

Moreover, these should have proper packaging with essential marks before export. However, the ITC-HS allows importing without any need for a license. ITC-HS is the abbreviated term for The Indian Trade Classification – Harmonized System.

Canalized Items:

One can import canalized products through certain channels of transportation only. However, one may import through government agencies like State Trading Corporation STC. Those like petroleum products, grains, certain pharmaceutical products, and vegetable products fall under this.

Prohibited Items:

Products like tallow fat, wild creatures, rennet of animals, ivory (that are not processed) fall under this category. Import/export was challenging prior. However, the government has certainly made things easy for helping the importers and exporters.

Restricted Items:

One can import the license products after having the license through General of Foreign Tradeor DGFT. However, this includes mainly consumer goods. Products from safety domain also fall under this category. Pharmaceutical products, chemicals, animals, plants, etc., also fall under this. Certain electronic products also fall under this category.

Important: Please note that the information on this page / site is provided as general information for better understanding for the user and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser(s) if you have any questions / doubts regarding the above.

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