Export Food Products To The USA From India?

The export and import of goods of India were sharply reduced as a result of the global trade slowdown. A key finding of the Economic Survey 2021 was that a variety of initiatives are being taken to promote exports, such as the Production-Linked Incentive Scheme (PLI), which would contribute greatly to the strengthening of India's external sector.

Overview:

Are you consider the prospect of export Food products to the US? The American market has shown a positive response to such ventures, making it an attractive business idea. This article aims to guide you through the essential steps and legal requirements involved in tapping into this promising business opportunity.

Products Exported from India to the USA:

India, being the ninth-largest exporter to the USA, contributes significantly to various sectors. While precious metals, pharmaceuticals, mineral fuels, textiles, and machinery top the list, the export of food products has also gained substantial traction. Some of the food items successfully exported from India to the USA include spices, rice, tree nuts, essential oils and processed fruits.

Exporting Food Products from India:

Exporting food products to the USA requires adherence to specific guidelines outlined in India’s Foreign Trade Policy (FTP). Here are the key steps to initiate your export business:

1. Company Incorporation:

• • Establish your business by incorporating the company.

2. Bank Account:

• • Open a bank account capable of handling foreign exchange transactions.

3. PAN for the Company:

• • Obtain a Permanent Account Number (PAN) for the company.

4. IEC (Importer Exporter Code):

• • Obtain an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT).

5. Registration cum Membership Certificate:

• • File for and receive a Registration cum Membership Certificate.

6. Product and Market Selection:

• • Choose the appropriate product and target market.

7. Finding Buyers and Sampling:

• • Identify potential buyers and initiate sampling.

8. Price Finalization and Negotiation:

• • Determine the final price and negotiate with buyers.

9. Risk Coverage:

• • Mitigate risks through the Export Credit Guarantee Corporation Ltd. before commencing exports.

US FDA Registration:

Ensuring compliance with the U.S. Food and Drug Administration (US FDA) regulations is crucial for exporting food products. Here’s how you can apply for and obtain a US FDA registration:

1. Appoint a US FDA-Registered Agent:

   – Foreign applicants must appoint a US FDA-registered agent to facilitate communication with the FDA.

2. Submit Information via FURL:

   – Provide relevant details, including document copies, through the FDA’s Unified Registration and Listing System (FURL).

3. Submit FDA Registration Application:

   – Complete and submit the FDA registration application form via FURL.

4. Registration Number Issuance:

   – Upon approval, the FDA will issue an 11-digit registration number to the registered email ID.

5. Renewal Requirement:

   – Renew FDA registrations every two years through registered agents to avoid interruptions in exports.

IEC Application Process in India:

Obtaining an IEC in India is a prerequisite for international trade. Follow these steps:

1. Visit DGFT’s Official Website:

   – Access the Directorate General of Foreign Trade’s official website.

2. Apply for IEC:

   – Click on the “Apply for IEC” option and fill out the application form.

3. OTP Verification:

   – Verify the application through an OTP sent to the applicant’s mobile number.

4. Provide Business Details:

   – Furnish additional business details, including PAN, date of incorporation, and financial information.

5. Payment and Document Upload:

   – Pay the processing fee and upload scanned copies of supporting documents.

6. Submission and Verification:

   – Submit the application and receive an Ecom Reference Number for future references.

7. Print and Submission:

   – Print the completed IEC application form and submit it to the nearest DGFT office for verification.

Tips for Exporting Food Products to the USA:

1. Documentation Preparation:

   – Begin the process with an Importer Exporter (IE) Code application and obtain a Country of Origin certificate for the food products.

2. Food Export License:

   – Secure a food export license, ensure FDA approval, and display comprehensive ingredient information on products.

3. Container Booking and Documentation Submission:

   – Book a container for exports, obtain a bill of lading, and submit relevant documents to Indian Customs for clearance.

4. Import Security Filing:

   – File an Import Security Filing 48 hours before loading goods for efficient customs clearance.

5. Legal Expert Consultation:

   – Partner with a legal expert to ensure a smooth application process and prevent delays or rejections.

Conclusion:

Embarking on a journey of exporting food products to US can be a rewarding venture. Vakilsearch stands ready to assist you in the entire import-export license registration process, from the IEC applications to compliance with US FDA guidelines. With our comprehensive support, your export business can thrive and navigate the complexities seamlessly. 

Reach out to Vakilsearch experts for a hassle-free experience in kick-starting your export venture!

Helpful Links:

• What is IEC Code?
• Exporting Medicines to Other Countries From India
• IEC renewal
• How to Export Rice to Kuwait from India?