Navigating Import and Export Procedures for Agriculture in India

India is one of the world’s largest agricultural producers, and its potential as an agri-trade powerhouse is immense. Whether you are a farmer-entrepreneur looking to export organic spices to Europe or an agribusiness planning to import high-yield seeds from abroad, understanding India’s import and export procedures is not optional – it is the foundation of a compliant and profitable international trade operation. The regulatory framework may seem layered at first, but once you break it down step by step, the path becomes considerably clearer.

The legal framework governing agricultural trade in India 🔗

All import and export activities in India are governed by the Foreign Trade (Development and Regulation) Act, 1992, which empowers the central government to regulate and develop foreign trade. The operational provisions under this Act are detailed in the Foreign Trade Policy (FTP), which is updated periodically. The current FTP 2023 emphasizes ease of doing business while maintaining strict quality and safety standards – particularly for agricultural products. The Directorate General of Foreign Trade (DGFT), functioning under the Ministry of Commerce and Industry, is the nodal agency responsible for setting trade policy and issuing key trade authorizations.

India classifies all traded goods using the ITC (HS) code system – an 8-digit Indian Trade Classification based on the Harmonized System of the World Customs Organisation. Schedule I of this system governs import rules, while Schedule II governs export rules. For agricultural entrepreneurs, knowing the correct ITC-HS code for your product is critical because the applicable import or export policy – whether a product is “Free,” “Restricted,” “Prohibited,” or channeled through State Trading Enterprises – is determined by this classification.

Step 1: Obtaining the Import Export Code (IEC) 🔗

The very first step for any business seeking to trade internationally is obtaining an Import Export Code (IEC). The IEC is a 10-digit code issued by the DGFT that carries lifetime validity and serves as the primary business identification number for all cross-border trade activities. Without it, customs will not clear goods, and banks will not process foreign exchange transactions. It is mandatory for all commercial importers and exporters – including those dealing in agricultural commodities.

Who needs an IEC? 🔗

Any entity – proprietorship, partnership, LLP, limited company, trust, HUF, or society – that wishes to engage in import or export must obtain an IEC. The only exceptions are goods imported for personal use (not connected with trade or commercial activity) and certain government departments. For GST-registered traders, the IEC is now linked to the entity’s PAN, though a separate IEC must still be obtained through the DGFT portal.

How to apply 🔗

The application is filed online through the DGFT portal using the Aayaat Niryaat Form (ANF-2A). After registration on the portal, applicants navigate to Services > IEC > Apply for IEC, fill in entity details, and submit the form along with a fee of ₹500. Required documents include a copy of the PAN card, proof of business establishment, address proof (rent agreement, electricity bill, etc.), and a cancelled cheque or bank certificate. Once submitted and verified, the IEC certificate can be issued within one to two working days in many cases. Importantly, IEC holders must update their details annually between April and June on the DGFT portal to prevent deactivation – a compliance step many new traders overlook.

Step 2: Compliance with trade laws and obtaining licenses 🔗

Having an IEC alone does not mean your product can move freely across borders. Agricultural goods are subject to additional regulatory scrutiny because they directly affect food safety, biosecurity, and public health.

Import licenses 🔗

An import license may be either a general license – under which goods can be imported from any country – or a specific license that authorizes import only from designated countries. General licenses are valid for 24 months for capital goods and 18 months for raw materials and consumables. The DGFT issues these licenses, and importers must confirm whether their product falls under the “Free,” “Restricted,” or other category in Schedule I before shipping.

Food safety and phytosanitary requirements 🔗

Agricultural imports face scrutiny from multiple regulatory agencies. Importing plants, seeds, or agricultural products requires a Plant Quarantine Certificate to prevent biological risks. Food items, additionally, require approval from the Food Safety and Standards Authority of India (FSSAI) and must meet sanitary and phytosanitary standards. FSSAI operates an online Food Import Clearance System (FICS) that is integrated with India’s customs electronic gateway, making compliance tracking more streamlined than in the past.

Step 3: The import process – from arrival to clearance 🔗

Once the regulatory groundwork is in place, the actual import process involves a defined sequence of actions from the moment goods arrive at an Indian port or airport.

Filing the Bill of Entry 🔗

The cornerstone document in any import transaction is the Bill of Entry (BoE). The Bill of Entry is a mandatory legal declaration submitted to customs authorities under the Customs Act, 1962, detailing the nature, quantity, value, and tariff classification of imported goods. It must be filed electronically through the ICEGATE portal (Indian Customs Electronic Gateway). There are three types of Bills of Entry: for home consumption (goods enter the domestic market directly after duty payment), for warehousing (goods stored in a bonded warehouse with duty deferred), and ex-bond (goods released from a bonded warehouse for domestic use).

Importers have the option to file a prior Bill of Entry even before goods arrive, which allows customs processing and duty payment to commence in advance, saving significant time at the port. Late filing attracts a penalty of ₹5,000 per day for the first three days and ₹10,000 per day thereafter.

Customs assessment and duty payment 🔗

After the Bill of Entry is filed, it is assessed by the customs appraising officer, who verifies the classification, value, and applicability of any exemptions. India levies basic customs duty on imported goods as specified under the Customs Tariff Act, 1975, along with goods-specific levies such as anti-dumping duty and social welfare surcharge. Additionally, Integrated GST (IGST) is levied under the GST system. Duty is calculated on the assessable value, which typically means the CIF (Cost, Insurance, and Freight) value of the shipment. A Risk Management System (RMS) determines whether goods need physical examination or can be cleared on the basis of documents alone, which helps expedite shipments from compliant traders.

The pass-out order 🔗

Once customs officials examine the Bill of Entry, match it with the imported items, and find no irregularities, they issue a “pass-out order” that allows the goods to be released from customs. For agricultural importers, having all documentation in order – including phytosanitary certificates, FSSAI clearances, and import licenses – before filing the BoE significantly reduces the risk of delays or rejections.

Step 4: The export process – registrations and documentation 🔗

Exporting agricultural products from India involves its own set of registrations and compliance requirements, particularly because the government actively promotes agri-exports and has set up dedicated bodies to support and regulate them.

APEDA registration for agricultural exporters 🔗

One of the most important registrations for agricultural exporters is with the Agricultural and Processed Food Products Export Development Authority (APEDA). APEDA was established by the Government of India under the APEDA Act, 1985, to promote and develop the export of scheduled agricultural and processed food products. Scheduled products include fruits, vegetables, meat, poultry, dairy, basmati rice, cereals, and processed foods. Under the APEDA Act, all exporters dealing with these scheduled products must register with APEDA and obtain a Registration-Cum-Membership Certificate (RCMC).

The RCMC is not just a legal requirement – it unlocks access to government financial assistance schemes covering market development, infrastructure upgradation, and quality certification support. APEDA also provides support for market research, participation in international trade fairs, and quality control training, making it a valuable institutional partner for agripreneurs looking to establish a global presence. Registration requires documents including the IEC, PAN card, GST certificate, bank certificate, and FSSAI registration for food products.

Chamber of Commerce registration 🔗

While not always mandatory, registering with the Indian Chamber of Commerce or relevant export promotion councils can provide exporters with valuable market intelligence, networking opportunities, and buyer-seller facilitation. Many international buyers and foreign governments also view Chamber membership as a mark of credibility and legitimacy. For niche or high-value agricultural exports, these associations can be the difference between landing a contract and being overlooked.

Shipping bill and export clearance 🔗

On the export side, the equivalent of the Bill of Entry is the Shipping Bill – the key document filed with customs before goods are dispatched. The Shipping Bill details the exporter’s name and address, a description of the export goods, and all applicable compliance declarations. It is filed electronically through ICEGATE, and exporters may use the services of a licensed Customs House Agent (CHA) to manage this process. After customs examination and clearance, goods move to the export dock and are loaded for dispatch.

Key export documents for agricultural goods 🔗

A standard export documentation set for agricultural products typically includes: the Shipping Bill, commercial invoice and packing list, certificate of origin, phytosanitary or health certificate (depending on the product), FSSAI export certificate, Letter of Credit (or other payment instrument), and the APEDA RCMC. The destination country’s requirements must also be checked independently, as food safety regulations and labeling standards vary significantly across markets.

India’s digital trade infrastructure 🔗

India has made significant strides in digitizing its trade procedures. The ICEGATE portal handles customs filings electronically, while the Single Window Interface for Trade (SWIFT) enables importers and exporters to lodge clearance documents at a single point, with permissions from multiple regulatory agencies obtained online. The e-Sanchit system serves as a paperless repository for uploading and storing supporting documents digitally. India is actively working to streamline customs approvals with a goal of clearing goods within one hour of arrival at seaports and airports as part of its India@2047 blueprint – an ambitious vision to elevate India’s share of global trade to 10 percent by 2047.

For agricultural businesses, these digital tools reduce paperwork, cut dwell times at ports, and make it easier to track shipment status in real time. Investing time in understanding platforms like ICEGATE and DGFT’s online portal pays dividends in operational efficiency.

Common compliance challenges for agri-traders 🔗

Even with clear procedures in place, agri-traders frequently encounter a few recurring challenges. First, shifting trade policies – DGFT notifications on export quotas, duties, or restrictions on products like non-basmati rice can change with short notice, as seen with the 2025 amendment requiring registration of all non-basmati rice export contracts with APEDA. Staying updated through DGFT trade notices is essential. Second, quality rejections – agricultural shipments rejected at foreign ports due to pesticide residues, mislabeling, or failing phytosanitary inspections can be financially devastating. Pre-shipment testing at accredited laboratories is strongly advisable. Third, documentation errors – even a mismatch between the commercial invoice and the Bill of Entry can trigger extended customs scrutiny. Accuracy in paperwork is non-negotiable.

Documentation requests and requirements are extensive, and delays are frequent – clearance delays cost time and money, including additional detention and demurrage charges. Engaging a licensed Customs House Agent who specializes in agricultural products can significantly reduce these risks, especially for first-time traders.

What do you think? As India pushes toward becoming a global agri-export leader, do you think small and marginal farmers can realistically access these trade procedures without institutional support – or does the regulatory complexity still favor larger agribusinesses? And with digital platforms like ICEGATE and SWIFT transforming trade facilitation, which bottleneck do you think needs the most urgent reform in India’s agricultural trade ecosystem?

References

1. https://dgft.gov.in/sites/default/files/om199.htm
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12. https://apeda.gov.in/APEDA-FAQ
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14. https://sell.amazon.in/grow-your-business/amazon-global-selling/blogs/apeda-license
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16. https://a2ztaxcorp.net/dgft-amends-export-policy-of-non-basmati-rice-under-itc-hs-2022-mandatory-registration-of-export-contracts-with-apeda-for-all-shipments/
17. https://www.trade.gov/country-commercial-guides/india-import-requirements-and-documentation