Export | Import License Queries
Export | Import License Queries
Understanding export and import licensing requirements in India is essential for any business looking to trade across borders. Whether you are starting a food export business or importing raw materials, clarity on regulatory requirements can save time and ensure compliance. Below, we address common questions related to export/import licenses, differences between key registrations, and specific food-related compliance requirements.
In India, the primary requirement for engaging in international trade is the Importer Exporter Code (IEC). An IEC is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry. This code serves as your business’s identification for all import and export transactions, and no goods can be legally imported or exported without it. Customs authorities require a valid IEC to clear cargo, and banks use it for processing foreign exchange transactions tied to trade. Thus, the IEC acts as a foundational requirement or license for import-export business operations.
Beyond the IEC, certain goods classified as restricted or regulated under India’s foreign trade policy might require additional, item-specific export or import licenses. These specialized licenses are granted on a case-by-case basis and depend on the nature of the product and destination country regulations.
While both IEC and export licenses are involved in international trade, they serve distinct purposes. The Import Export Code (IEC) is essentially a universal registration number for any Indian business that wishes to engage in import or export activities. It does not authorize a specific product shipment but rather enables trade activity on an ongoing basis. An export license, on the other hand, is a specific permission required only for certain regulated or restricted goods. Such export licenses may have limits in terms of quantity, destination, or validity period, and are often issued by DGFT or related ministries depending on the commodity. In contrast, IEC is mandatory for all businesses involved in international trade, regardless of the goods or services being exported or imported.
For businesses exporting food products, having both the IEC and a valid FSSAI license is generally required. The Food Safety and Standards Authority of India (FSSAI) is responsible for ensuring food safety and hygiene compliance under the Food Safety and Standards Act. If your business is handling processed, packaged, or value-added food items, obtaining an FSSAI license—typically the Central License (Form B) for export operations—is mandatory. This license demonstrates compliance with Indian food safety norms and is crucial for customs clearance and international buyer confidence.
While the IEC allows you to conduct trade, the FSSAI license specifically covers food safety standards. Both registrations work in tandem to meet regulatory and market requirements for food export. Additionally, the FSSAI may have different categories of licenses depending on turnover and business operations, but exporters generally must secure the Central License.
Importing food products into India involves a combination of registrations and compliance steps. First, you must obtain the IEC from the DGFT, which, as noted, is non-negotiable for any international trade activity. Second, food importers must secure an FSSAI Importer License via the Food Safety Compliance System (FoSCoS) portal. This license ensures that the food being brought into India meets the safety and quality standards prescribed under Indian food regulations. In addition, some commodities—especially agricultural exports like fresh produce—may require phytosanitary certificates or other health and safety documentation from the country of origin. Customs clearance for food items is handled through the FSSAI’s Food Import Clearance System (FICS), which is integrated with the Indian Customs ICEGATE system.
For most food imports, besides IEC and FSSAI, you may also need supporting documents such as labels compliant with Indian regulations, country-of-origin certificates, and ingredient lists. Meeting these requirements will help ensure smooth clearance at Indian ports.
The Agricultural and Processed Food Products Export Development Authority (APEDA) plays a significant role in promoting India’s agricultural and processed food exports. For exporters dealing with scheduled products under APEDA’s ambit, such as fruits, vegetables, processed foods, and other agri-items, registration with APEDA is effectively mandatory. This registration provides you with an RCMC (Registration-cum-Membership Certificate), which enables participation in government export promotion schemes, trade fairs, and incentive programs, and supports quality control and export documentation.
Without APEDA registration, businesses may face limitations in leveraging official export support mechanisms, even though IEC and FSSAI compliance still govern the basic legal requirements. In practice, APEDA registration is considered critical for exporters targeting global markets for agricultural and processed products.
Successfully navigating export and import licensing in India involves understanding a layered regulatory framework. From the mandatory IEC to specialized food safety compliance through FSSAI and export promotion via APEDA, each step has its role in your trade journey. If you want help applying for an IEC, FSSAI license, APEDA registration, or to clarify any compliance requirements, reach out to Shugam Consultants for expert guidance and support tailored to your business needs.