Under normal circumstances, the farmers are in a position to get their returns only based on the demand in the market or whatever the agents offer after deducting their commission amounts or what is offered in the auction in the market. Many times, they will not even get what they have invested. As a result of this, they are unable to plan ahead as to how much they would be able to earn and when.
On the other hand, if the farmers decide in favour of exporting, they will be able to fix the price and plan their returns from the exports. In this foregoing article, we will understand the basic formalities to be observed for becoming a successful exporter of different produces.
First of all, we must apply for the export licence from the concerned department. For this purpose, we must start a company with a name which is vital. When we pack a commodity and sell locally as an individual, we may just put our initials on the bag. But when we want to pack and export to other countries, it must bear a distinct company name. While naming the company, we must avoid the name of our family or any individual as such. It must rather be understood universally. Like that only, Mr Kamaludeen has named his companies like ‘Blue Bharath’ and ‘Blue Apple’. Since the name contains the word, ‘Apple’, it does not mean that only apples can be exported. In fact, he is exporting tamarind also. Hence, a common name is a ‘must’.
As far as possible, it is better to avoid giving our house address. We can either give the farm’s address or open an office and use that address. If it is an owned land, it is necessary to have land tax receipt and if it is a rented place, we should have a rental agreement for proof. In addition to this, we need to have e-mail id, an exclusive mobile number and visiting cards.
Similarly, we must decide whether we are going to start as a sole proprietorship concern or partnership business. In the case of the latter, we must get a partnership deed executed on a stamp paper worth Rs.300/- with the help of an auditor or lawyer. If an individual wants to export as a sole proprietor, his PAN card (Permanent Account Number) would be enough. If the export is desired under the partnership firm, it is necessary that they obtain a PAN in the name of their firm. For this, they can apply through online – www.tin.nsdl.com against payment of just Rs.150/-.
Next, a current account with FOREX facility should be opened in a nationalised bank. If there is no branch in a village, an account may be opened in the nearby town branch. If FOREX facility is available, the money from the buyer can be credited in our account in a shorter time. The original author of this article had earlier suffered the undue delay in the remittance of payment from the buyer in his account which did not have FOREX facility. Later on, he changed his account with FOREX facility after which there is no delay in the foreign exchange money being paid into his account.
Next important formality is GST registration. While this is not applicable for a farmer who sells his produce in our country only, it is necessary to have the GST registration if he wants to export to other countries. For getting this formality, please go to www.gst.gov.in website
After all the above, an aspiring exporter should apply for IE Code (Import Export Code) through online by visiting the website www.dgft.gov.in since it comes under the body of Director General of Foreign Trade (DGFT). In this form, we should not fill up our name against Account Holder’s Name but we must mention only the name of the company. This is applicable in all cases in this form. The registration fee for this is Rs.500/-. After receiving this IE Code number, we must apply for Authorised Dealer Code (AD Code). This can be applied with IE Code in the bank where we have opened our current account. This AD Code will facilitate easy and hassle-free shipment processing in the customs department.
All the above-mentioned formalities like current account, PAN, GST, IE Code and AD Code etc. can easily be applied through online itself for which we may have to incur a sum of just about Rs.2,000/- only.
Finally, we have to submit all these documents with the organisation which controls the products that we are planning to export for registration which is known as Registration Cum Membership Certificate (RCMC). With this certificate, we can begin our export operations. There are 37 boards and councils which issues this RCMC.
For agri products, we have to apply with APEDA (Agricultural & Processed Food Products Export Development Authority) and for marine products MPEDA(The Marine Products Export Development Authority). Coffee & Tea Boards for coffee and tea products, Coir Board for coir products, Coconut Board for coconuts (coconuts and related products will not come under agricultural products), Spices Board for spices and FIEO (Federation of Indian Export Organisation) for other products must be contacted for proper registration. The required RCMC certificate should be obtained only from the concerned export authority as stated above, through online. If we give proper inputs as required, it is easy to get the work done immediately. Hence, it is better to have all these documents duly scanned for easy submission. Forms can be downloaded, filled and couriered to the respective office as physical submission also. No doubt, with the above formalities, one can export his commodity and expand his business over a period of time.
(Agricultural and Processed Food Products Export Development Authority).
APEDA:- The southern office is in Bangalore. This takes care of basmathi rice, normal rice, fresh vegetables, flowers, fruits, onion, jaggery and groundnut for the issue of a necessary certificate. We need not go over there in person. We can get the certificate online itself, vide www.apeda.gov.in. We can get the certificate within a week’s time against payment of Rs.5,900/- only. For commodities pertaining to fish and marine products, we have to apply to www.mpeda.gov.in. The address is Agricultural and Processed Food Products Export Development Authority, 1st Floor, Beeja Bhavan, Bellary Road, Hebba, Bengaluru. Ph No.080 29731200/29731206/23419272.
FIEO:- Federation of India Export Organization:-
Since the majority of exportable commodities come under this organisation for certification, this is very important. For commodities like handicraft products, cashew, oil products, silk, silk cloths, textiles, bed sheets and wooden products, necessary certification is issued by this office. Its office is located in Chennai only with its branch at Coimbatore. Its website is www.fieo.org and application can be done online. This office gives training on the export formalities once a month. Its address is FIEO, 706, Spencer Plaza, 7th floor, 769, Anna Salai, Chennai – 600002. Phone Nos.: 044 28497766/28497755/28493333,
Coconut Development Board, Spices Board, Coir Board – all these are located at Kochi in Kerala state. We must apply in www.indianspices.com for tamarind, pepper, cardamom etc. The fee for this is Rs.11,800/- including GST. In the case of tender coconut water, coconut and coconut shell, we have to apply online in www.coconutboard.gov.in. The requisite fee for coconut related products is Rs.5,000- excluding GST.
Coconut Development Board,
(Government of India, Ministry of Agriculture & Farmers Welfare),
P.B. No.1021, Kera Bhavan,
SRV Road (Near SRV High School),
Kochi – 682 011, Ernakulam District,
Kerala State. 0484 2376265, 2377267, 2377266, 2376553.
(Ministry of Commerce & Industry, Govt. of India)
N.H.By Pass, Palarivattom.P.O
Cochin - 682025
Phone: 0484 2333610/616
((This article was written in Tamil by K S Kamaludeen for Pasumai Vikatan magazine dated 25/10/18 has been transcreated in English by P.S.Ramamurthy)