How to export fruits and vegetables from India
India delivers some of the best fruit and vegetable exports in the world after China and is famously known as the fruit basket of the world. The country possesses a highly diverse landscape with a wide range of agro-climatic zones, which enables the production of various horticultural crops such as fruits, vegetables, flowers, spices, plantation crops, root and tuber crops, and medicinal and aromatic crops.
The vital fruits grown in India are Mango (35.41% of total area under fruits), Citrus (15.60%) and Banana (13.45%). The other grown fruits are Apple, Guava, Pomegranate, Grapes, Jackfruit, Pineapple, Papaya, Sapota, Custard apple, Indian gooseberry (Aonla) and others. Among fruits, the country ranks first in production of Banana (33.74%) followed by Mango (21.39%) and citrus (13.46%).
Export Documentation for Fruits and Vegetables
Some useful Tips for Setting up of an Export Firm
Name of the Firm: Find an attractive name for your Export Firm. It should have only two to three words. The first word should be unique, inspiring and meaningful. It should be easy to spell and speak. The last word should be preferably Exports or International or Overseas. It indicates that you are operating in an international market. Exim or Impex or such other hybrid words should be avoided. For example, Orbit International, Skyline Overseas, ABC Exports.
If you are dealing with a particular commodity like agro, spices, chemicals, engineering etc., you may include it in the middle of the name. For example, Sun Agri Exports, Maruti Fresh Fruits International.
PAN Card: Once you have decided the name of your firm, now go for obtaining PAN Card is mandatory for getting your IEC number. Apply to the concerned Income Tax office for the PAN number. In case of a proprietorship firm, the PAN in the person’s name is valid. In other cases, the PAN in the company’s name is required.
Registration For Exporters:
Export Documentation (APEDA) with Falcon Experts:
After you obtain the IEC number, contact Falcon Freight, as they can help you obtain a Registration-cum-Membership Certificate (RCMC) from the Export Promotion Council (EPC) related to the products you plan to export—for example, APEDA for specific agro products such as fruits and vegetables, or the Spice Board for spices. You need an RCMC to obtain authorization for importing or exporting, to access benefits under the Foreign Trade Policy (FTP), and to receive services or guidance. Export Promotion Councils (EPCs) promote and develop Indian exports and consist of organizations of exporters. Each council promotes a specific group of products, projects, or services.
Select the products you want to export and identify their ITC (HS) codes. India exports more than 10,000 products, including agricultural goods and export-quality perishables. Collect export and import data for your products from government institution websites, EPCs, and private information providers. India uses an 8-digit ITC (HS) code for this purpose. ITC (HS) codes, also known as Indian Trade Classification (ITC) codes, classify traded products under the internationally standardized Harmonized System (HS) of tariff nomenclature, which uses product names and numbers.
Free Trade Agreement(FTA) and Preferential Trade Agreement (PTA, limited FTA)
Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) are arrangements between two or more countries in which partner nations exchange trade concessions for goods and services, including fruits and vegetables. According to WTO reports, there are currently 398 FTAs/RTAs in force worldwide. India has entered into 10 FTAs covering 18 countries and 6 PTAs covering 50 countries, along with one unilateral scheme for Least Developed Countries (LDCs) involving 49 countries.
These agreements aim to ease exports from India and provide domestic industries with easier and more economical access to imported raw materials, fuels, intermediate goods, and capital goods. Changes in customs duties under such agreements significantly influence competition and business growth, making careful analysis and a thorough understanding of existing provisions and future trends essential in today’s free-market trade environment to maximize profits.ssd
Export Freight Rates:
Export pricing plays the most significant role in promoting exports and facing global trade competition. Exporters must keep prices low while considering all export benefits and expenses. However, exporters do not follow a fixed formula for export pricing. The price of the same product may differ significantly across markets, and exporters may set multiple prices for the same product based on factors such as marketing strategy, product uniqueness, quality, brand recognition, quantity, market demand, and target customers. Prices may also vary from exporter to exporter depending on whether the exporter is a merchant exporter, a manufacturer exporter, or exports through a canalising agency. The way exporters price a product is crucial in attracting buyers before they become familiar with product quality, delivery, and service. In a competitive environment, lower prices help exporters maximize sales.
Commercial documents are classified as Principal Export Documents and Auxiliary Documents:
Export Documentation (i) Proforma Invoice:
Proforma invoice is the start of an export contract. When the exporter receives the trade inquiry from the importer, exporter submits the Proforma invoice to the importer. Contains details such as name and address of the exporter, name and address of the intending importer, nature of goods, mode of transportation, unit price in terms of internationally accepted quotation, name of the country of origin of goods, name of the country of final destination, period required for executing contract after receipt of confirmed order and finally signature of the exporter.
Commercial Invoice: A commercial invoice is the seller’s bill for merchandise goods sold by him. And contains all the particulars and details in respect of the name and address of the seller (exporter). They also includes the name and address of the buyer (importer) and the date. The mentions the exporter’s reference number and the importer’s reference number. Provides the description of goods, price per unit at a particular location, quantity, and total value, includes packing specifications and terms of sale (FOB, CIF, etc.). It contains the identification marks of the package and the total number of packages. states the name and number of the vessel or flight and the bill of lading number. It mentions the place and country of destination and the country of origin of goods. Reference to the letter of credit, if opened, and the terms of payment. Finally, it contains the signature of the exporter.
Consular Invoice:
Some importing countries require the importer’s consular office in the exporter’s country to sign the invoice Such invoices are known as consular invoice. The exporter has to pay a certain fee to obtain the certificate/invoice. Such charges/ fees vary from country to country. The main purpose to obtain consular invoice is to secure authentication of information contained in the invoice.
INCOTERMS 2020
- EXW – Ex Works (… named place) EXW represents minimum involvement of the seller and the maximum involvement of the buyer in the arrangement of the transportation of the goods from seller’s premises (factory, warehouse etc.). When When EXW is used, the parties should remember that the seller does not guarantee the export of the goods, and the buyer may keep the goods in the seller’s country and/or re-sell them to a third party.
- FOB – Free On Board (…named port of shipment) FOB is one of the most common terms used in global and international trade. Under FOB, the seller is responsible for delivering the goods to the named port.The seller also handles export customs clearance. The seller is responsible for loading the goods onto the vessel. If the goods fall on the wharf or into the water while loading, the seller bears the loss. If the goods fall on the deck of the ship, the buyer is responsible for the loss.
- CIF – Cost, Insurance and Freight (…named port of destination) CIF is very similar to CFR with the addition of insurance for seller’s responsibilities.
Conclusion
If you would like to know more about export procedures and documentation in India. So, please contact us. We can be reached at +91-9311595648 or at [email protected]