Export Food Products from India:
India, as a country, is known for its export of food items to other countries. The main reason behind the significant growth is the policies framed by our government.
The food items have a direct connection with the health and safety of the consumers. As several measures have been taken by the government of countries around the world to ensure the safety and quality of food items exported from India.
Moreover, the ultimate authority regarding the guidelines for the Export of Food products is with FSSAI. That means the exporter needs to mandatorily comply with the guidelines issued by the FSSAI and provisions of the FSS Act 2006. Also, the exporter needs to apply for the FSSAI License with FSSAI.
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The US exports more food than any other country in the world. Among the top export destinations of the US are Canada, Mexico, China, Japan, and Germany.
In the last two decades, the country has experienced periods of total decline as well as periods of rapid development precipitated by a shift in both the variety of US agricultural products being exported as well as the ports of call for these products.
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1) Establish an organization – To start the business of export, a Sole Proprietary concern/ Company or a Partnership firm needs to be set up as per the prescribed procedure with an attractive name and logo.
2) Open a Bank account – The current account needs to be opened with a Bank that is been authorized to deal with Foreign Exchange.
3) Obtain PAN – It is a compulsory document, which needs to be obtained by every importer and exporter.
4) Obtain IEC (Import- Export Code) – It is mandatory to obtain a 10-digit IE code number for export from India s per foreign trade policy.
5) Registration Membership certificate – This certificate is been needed for availing export or benefit or concession under FTP.
6) Selection of product – The products that appear under the restricted or prohibited list, all are freely exportable.
7) Selection of the market– As overseas market should be selected after research covering market size and competition, quality requirements, payment terms, etc.
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8) Searching for buyers – B2B portals, buyer-seller meets, web browsing, and participation in trade fairs and exhibitions can be considered important tools to find buyers.
9) Sampling – Providing samples as per the need of the foreign buyer would help in getting orders.
10) Price and costing – Pricing of the product is very crucial in getting the attention of the buyer along with promoting sales.
11) Negotiation with the buyers – the buyer’s interest in the product discussion related to the allowance, discounts, and other aspects can be considered.
12) Risk covering by way of ECGC – International trade involves risks related to payment due to buyer/ Country insolvency.
Also read: how to get ISI certification approved.
Food export licensing:
A business wishing to export foods must declare the nature of the goods to the Director General of Custom, price, and quantity.
An export permit must also be obtained after the prescribed physical examination. Goods for export must be brought into the Customs area or a specially permitted place for storage.
At the time of export declaration, the exporter is requested to submit two copies of the export report. One is for statistics and the other is kept at Customs for other needs such as export certification.
Under other laws and regulations, exporters of cargo, who are required to obtain permits or approvals or pass examinations, must prove to Customs that these requirements have been needing to be confirmed.
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