India is seeing a surge in exporting agricultural and horticultural produce globally, making it an attractive and lucrative business venture for many businesses within the country. Growing quickly in demand around the world, the products include everything from fresh fruits, vegetables, spices, grains, and pulses as well as processed food products. One important question new exporter have is "Is Import-export Code (IEC) registration sufficient for exporting agricultural or horticultural produce internationally?" The simple answer is that while IEC registration is a requirement, it alone is NOT sufficient for exporting Agri/Horti-related goods. It is also important to note that there are many other licenses, registrations, and certifications that may be needed based on the type of product you are exporting, where it is headed (destination country), and what category it falls under for export purposes. This comprehensive blog post will provide exporters with the information they need regarding the Import Export Code Registration, when IEC is sufficient, when additional approvals are necessary, and compliance measures you must take to successfully export agricultural and horticultural goods without any issues with customs or shipment delays.
Understanding Import-Export Code (IEC)
The Importer Exporter Code (IEC) is a special 10-digit identifier assigned to businesses and individuals who wish to import and export goods under the authority of the Directorate General of Foreign Trade (DGFT). In India, having an IEC is a requirement for all businesses and individuals who wish to import or export goods from India. It is the only proof that you have been properly registered with the government to conduct your import and export business.
Reasons to Obtain an IEC
Legal Requirement: If you do not have an IEC, you cannot legally export your goods anywhere outside of India. You can only export them legally if you have obtained an IEC before you ship the goods.
Banking Transactions: If you wish to receive payment from your foreign customers, you will need to provide them with an IEC.
Customs Clearance: An IEC is also necessary when clearing customs paperwork at a port.
An IEC may be obtained through Importer Exporter Code Registration Services. These services are designed to assist businesses in the preparation and submission of IEC applications to ensure they are processed without delay.
Why Import Export Code Is Not Enough for Agricultural Exports
Agricultural and horticultural products belong to the group of perishable products. Most countries that import these products have very strict guidelines about: Quality standards? Packaging? Food Safety? Chemicals used? Pest Control? Soil contamination? Moisture/content levels? Therefore, exporters need to comply with many different regulatory frameworks that are outside of the Import Export Code (IEC).
Is IEC Enough for Exporting Agricultural Produce?
Exporting agricultural or horticultural products does necessitate an Import Export Code (IEC) however, there are several other items you will have to comply with as well such as additional regulations regarding food safety and quality as well as international trade legislation.
Some of the additional regulations you will have to comply with are listed below:
1) FSSAI (Food Safety and Standards Authority of India) license or certification – For all food products being exported to an overseas market it is usually a requirement that an exporter has obtained a FSSAI license to ensure the produce has been produced under safe hygienic conditions.
2) APEDA (Agricultural and Processed Food Products Export Development Authority) registration – The APEDA is responsible for the development of Agriculture and Processed Foods (both products and produce) for export. Therefore, any exporter exporting fresh produce and any products that fall under the regulations of APEDA will need to register with them.
3) Phytosanitary certificate – A phytosanitary certificate is a document issued by the Indian Government's Plant Quarantine Authorities and is a requirement for some countries to prove a product is free of any pests or diseases.
4) Quality Compliance – When exporting to foreign countries, many buyers will insist that the products they purchase comply with international quality certification such as ISO, HACCP or GLOBAL GAP. The Import Export Code alone will not be sufficient to show compliance with these standards.
5) Customs clearance – When exporting, as part of your customs clearance process exporters will also require that they have all of the appropriate shipping documentation, including properly created shipping bills, supplier Invoices and Bills of Lading in order to clear customs.
Why Sole Reliance on IEC Can Be Risky
Exporting under the IEC only, means that:
1) Goods may get rejected when reaching the border of an importing country.
2) Possible legal penalties or fines may be imposed.
3) Trust may be lost from buyers and therefore future business opportunities will no longer be available.
The IEC is just the first step for exporters since they also need to comply with multiple regulatory requirements to ensure successful exports.
What Is Importer Exporter Code Registration & Why Is It Mandatory?
Import and export activity requires a 10-digit Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT) to establish identity among exporters and importers engaged in international trade with India. IEC registration serves several purposes:
• Allows export shipment to clear Customs
• Allows payment from foreign buyers to be received
• Provides eligibility for export incentives and subsidies
• Provides eligibility for a Foreign Currency Account
• Serves as proof of legal export activity
Registration for the IEC is an essential prerequisite to the initiation of any export enterprise. You may apply for IEC registration through an authorized IEC registration provider or directly to the DGFT.
The IEC alone does not fulfill the requirements for businesses involved in the export of agricultural or horticultural items since these products are subject to multiple authorities with regard to plant health, quality inspections, food safety, and packaging.
Additional Licenses & Registrations Required for Agricultural/Horticultural Exports
A full list of important permits necessary outside of the Importer Exporter Code Registration is listed below:
1.APEDA Registration (RCMC)
APEDA regulates exports of agricultural products and processed foods. Most agricultural/horticultural products may either require an APEDA (Registration-Cum-Membership Certificate) for Exporting.
Reason for the requirement of APEDA registration:
• All exporters must be registered with APEDA to export the majority of agricultural products.
• Exporters can take advantage of financial assistance programs if registered with APEDA.
• Exporters must be registered to participate in International Trade Fairs.
• APEDA helps exporters attain compliance with international quality standards.
2. The FSSAI Food Export License
If you sell processed food, packaged foods, or consumable food, then it is necessary to register for FSSAI Food Export Licenses in order to export those items.
Reason for obtaining an FSSAI License:
• FSSAI ensures that the food is safe for human consumption.
• FSSAI provides the customs and several importing nations with the required documentation to clear the export shipment.
• FSSAI registrations are Required for all exports of Edible Produce.
3. The Phytosanitary Certificate (PSC) is required for all Plant Exports
The PSC is issued by the Plant Quarantine Agency in the Ministry of Agriculture.
The PSC proves:
• Your produce does not have any pests or diseases
• Your produce meets the Plant Health standards of your destination country
• Your packaging is clean and free of pests.
The country importing your shipment will not clear it for entry into their country without the PSC being attached.
4. Certificate of Origin (CoO)
Export Promotion Councils or Chambers of Commerce issue CoOs.
CoOs are required to:
• Obtain preferential tariffs
• To prove where a product comes from
• To clear customs with foreign governments.
5. Export Inspection Certificate (EIC/EIA)
For some countries (especially in the Middle East and EU) an EIA inspection is required.
The EIA ensures:
• The quality of the product meets international quality standards for exportation
• All testing and inspection completed for each batch of products.
6. Packaging, Labelling and Bar Code Compliance
Exporters must comply with the following regulations:
• Codex Standards;
• Importing country food safety regulations;
• Pre-Shipment Packaging;
• HS Code compliance.
If the packaging and/or labelling is inadequate, the shipment may be rejected.
7. GST Registration (mandatory for exporters)
Although exports are zero-rated under GST, exporters must be registered with GST and have a valid GSTIN and LUT (Letter of Undertaking), so that they can export without paying the IGST.
8. Product Specific Requirements
Some examples are:
• Spice export = Mandatory Spice Board Registration
• Tea Export = Tea Board Permit
• Coffee Export = Coffee Board Approval
• Organic Produce = NPOP/NOP Organic Certification
These requirements differ by product and by market.
Step-By-Step Compliance Guide for Exporting Agricultural/Horticultural Produce
Following is a brief guide to help first-time exporters understand how the whole procedure works:
Step 1: Get Your Importer Exporter Code Registration
Your first step to import/export is to apply for an Importer Exporter Code (IEC). The IEC serves as your International Trade Identity.
Step 2: Register with APEDA
You need to apply for an RCMC from APEDA to export agricultural products to countries under its jurisdiction.
Step 3: Prepare Your Processing and Packaging Unit
The following items must be in place:
Hygiene practices;
Inspection/testing facilities;
Cold storage space (for perishable items);
APEDA approved packaging area specifically for fruits and vegetables.
Step 4: Get Mandatory Certificates Required for Your Product
Every product requires certain certificates:
Phytosanitary Certificate
FSSAI Export License
EIA Inspection if necessary.
Step 5: Identify Appropriate HS Code and Comprehend Destination Country's Policies
Certain policies will vary from country to country with respect to:
Maximum Residue Limits (MRLs);
Quality Standards;
Labeling Formats;
Packaging Standards.
Step 6: Perform Pre Shipment Inspection and Quality Tests
Testing may include:
Pesticide Analysis
Microbiological Testing
Moisture Content
Overall Physical Quality Checks
Step 7: Arrange Logistics and Cold Chain / Transportation
For perishable products:
Cold Chain Maintenance throughout transportation;
Utilization of APEDA approved cold storage facilities.
Step 8: Prepare Shipping Bills & Complete Customs Documents
In your shipping/bill of lading, you must enclose the following:
IEC certificate;
APEDA RCMC certificate;
FSSAI license;
Phytosanitary certificate;
Certificate of Origin.
Step 9: Ship Product and Receive Payment
Once you have obtained your IEC, your payment will be deposited into your bank account as per Reserve Bank of India regulation.
Documentation Checklist for Exporting Agricultural Produce
To export safely and legally, ensure you have:
Why Import Export Code Alone Is Not Enough
Here is a Summary of Core Points:
Agricultural export involves biosecurity, international standards, certifications, and multiple regulatory approvals hence IEC alone is insufficient.
Impact of IEC Registration on Agricultural Export Business
The role of IEC registration is to facilitate efficient trade operations. The following are the ways that IEC contributes to this process:
1.Facilitating Legitimate Exports
Foreign buyers recognize exporters with a valid Import Export Code in India as legitimate exporters and therefore are much more likely to support their business.
2. Customs & Shipping Processes
The IEC simplifies:
• Clearance from customs
• Handling at the port
• Required documentation for international shipment
• Approvals for export
3. Providing Export Incentives & Benefits
Exporters without an IEC cannot access any of the following:
• RoDTEP merchandise (Duty to Exchange Products)
• Duty Drawback on Export
• Export Subsidy
• Government Incentive Programs
4. Facilitating International Payments
The payment for international shipments through banks by foreign banks is limited to only those exporters with an IEC.
5. Provides Global Trade Opportunities
The IEC allows exporters to:
• Establish International Partnerships
• Source Export Financing
• Participate in Trade Fairs
• Meet with Global Buyers/Sellers
Consequences of Exporting Agricultural Produce Without Required Licenses
If you plan to export with just an IEC and no APEDA registration, PQ certificate, or other documentation, this may lead to one or more of the following consequences:
1.Shipment Rejected at the Destination Port
If your goods are:
• Unfit for human consumption (pest-free)
• Unfit for export (did not meet quality requirements)
• Lacking the necessary quarantine certificate(s)
• Poorly packaged (i.e. not properly stored and/or secured)
Ports may refuse to allow entry into their port.
2. Financial Losses
The unfortunate result of a rejected shipment is:
• Loss of that shipment
• Cost of return freight
• Penalties to the exporter
3. Blacklisting from Exports
A business may:
• Be blacklisted by the foreign buyer
• Be reported to Indian authorities
• Be prevented from exporting in the future
4. Delayed International Payments
Banks may withhold payment until all documents are available for processing.
5. Legal Penalties/Suspension of Goods by Customs
If a business does not comply with the legal requirements of exporting, it is subject to:
• Fines imposed by custom authorities
• Seizure of imported goods
• Legal action brought against the exporter
6. Damage to Business Reputation
A rejection can damage the brand's reputation and erode consumer trust in a global marketplace.
Benefits of Having Complete Export Compliance (IEC + APEDA + PQ + Others)
As an established exporter, obtaining the appropriate certifications will provide you with various benefits such as:
1.Effortless global trade.
When all documents are compliant, the process of Customs Clearance, Plant Quarantine approvals and shipping can be expedited.
2. Increased Trust with Buyers.
Foreign Importers have a preference for exporters who have the complete documentation requirements.
3. Increased Profits.
Exporters will receive higher prices for quality certified products when sold in the global marketplace.
4. Eligibility for Government Incentives.
Exporters who have obtained their certifications will be eligible for export incentives, market development assistance and subsidies for packaging and testing.
5. Minimized Risk of Rejection.
Proper certifications help to eliminate the possibility of losing shipments.
6. Access to Higher Level Markets.
Exporters with all compliance will have access to some of the most lucrative international Markets such as the EU, USA, Middle East, Japan and Australia.
Common Mistakes to Avoid
Conclusion
Obtaining an Importer Exporter Code (IEC) Registration is the first and most significant step for anyone wanting to start an export business. However, it is not sufficient when exporting products from agriculture or horticulture. Both of these types of products must meet very strict international standards concerning food safety, plant health, packaging norms, and other regulations specific to that product type. In order to meet these international standards, exporters of agricultural produce will need to also obtain other certifications, including APEDA Registration, FSSAI License, Phytosanitary Certificate, Certificate of Origin, and compliance with any other regulations needed for their type of produce and for the country they export to. By completing these additional steps along with your Importer Exporter Code registration, you will ensure that your agricultural exports are legally compliant, of the highest quality, and accepted globally. This will help to establish trust and promote long-term growth for you in the international marketplace.
(FAQs)
Q1. Can I export agricultural produce with only an IEC? No, while IEC is mandatory, exporters also need FSSAI certification, APEDA registration, and other compliance documents depending on the produce.
Q2. How long does IEC registration take in India? IEC registration usually takes 3–5 business days if all documents are correctly submitted.
Q3. Do I need APEDA registration for all agricultural exports? APEDA registration is mandatory for certain categories of agricultural and horticultural products as per Indian export regulations.
Q4. Can a professional service handle IEC registration and other compliance requirements? Yes, professional Import Export Code registration services can guide you through IEC, APEDA, FSSAI, and other necessary compliance processes.
Q5. Is an FSSAI license required for all food exports? Most food and horticultural exports require an FSSAI license to ensure safety and hygiene standards are met for international markets.
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