Which License is Required to Export Sugar from India?

Business

Which License is Required to Export Sugar from India?

Registrationwala

Sugar is a sweet crystalline carbohydrate extracted from sugarcane and sugar beets. In the case of sugarcane, the stalks are crushed to extract the juice, which is then boiled to evaporate the water and create a concentrated sugar syrup. In the case of sugar beets, they are sliced and then the sugar is leached out using water. Both these methods produce raw sugar. This raw sugar then undergoes a refining process to produce white, crystalline sugar we commonly use in the households. 

India is one of the top 5 sugar producing countries in the world. It is also one of the top 5 sugar exporters in the world. To export sugar from India, you require certain licenses and registrations. This blog post shall serve as a guide for you if you are planning to start a sugar export business from India. 

Why Start Sugar Export from India?

As mentioned in the introduction, India is one of the largest sugar exporters in the world. The demand for sugar is high across the globe. India produces it in large quantities and can meet the demand in other countries. By becoming a sugar exporter, you can serve these countries and make a profit.

Types of Sugar that can be Exported from India

Here are some common types of sugar that can be exported from India:

Licenses Required to Export Sugar from India

For exporting goods from India, you require certain licenses, certificates and registrations before you can commence export business activities. Below we have explained the key licenses and registrations you’ll need to run a smooth export business for sugar:

1. Company Registration

To run an export company, you must register your business with the Registrar of Companies (ROC), in accordance with the provisions of the Companies Act 2013. For this, you need to file an online application, using SPICe+ form, via the official portal of the Ministry of Corporate Affairs (MCA). 

While filing the application, make sure you fill in all the details correctly and within the prescribed format. Also, make sure you attach all the necessary documents like Memorandum of Association and Articles of Association. While filing the application, you’ll need to pay the prescribed application fee. Once you have successfully filed the application, it’ll be forwarded to the ROC.

The ROC will then carefully review your application and verify all the documents. If it is satisfied with the application, it’ll register your company and issue a certificate of incorporation in the company’s name. 

2. Business Commencement Certificate

To commence business activities, it is essential to obtain a business commencement certificate. This certificate is issued by the Registrar of Companies. 

To secure a certificate of commencement of business, you must file Form INC 20A within 180 days from the date of company incorporation.

3. APEDA License

Since sugar is an agricultural product and is included in APEDA Scheduled Products List, it is essential to secure an APEDA license from the Agricultural and Processed Food Products Export Development Authority (APEDA). Without an APEDA license, exporters cannot export sugar from India. 

To apply for an APEDA license, you must file an application via the official DGFT portal. For assistance in this process, you can connect with Registrationwala’s APEDA consultants.

4. FSSAI License

FSSAI License is a mandatory license for businesses engaged in manufacture, distribution, import and export of food products in India. Therefore, to export sugar from India, you must secure a FSSAI license. This license is issued by the Food Safety and Standards Authority of India (FSSAI). 

It is important to note that there are different kinds of FSSAI Certificates: (i) FSSAI Basic Registration Certificate (ii) FSSAI State Certificate and (iii) FSSAI Central Certificate. For exporting sugar, you will need to file an application for FSSAI Central Certificate. For application filing, you must use the prescribed Form B as per FSSAI guidelines.

5. DGFT IEC Code

To export goods from India or import goods into India, it is essential to secure the Import Export Code (IEC). It is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT). It is mandatory for the businesses to secure IEC prior to exporting sugar from India. 

You can secure IEC by filing an online application via the official DGFT portal. Once you secure this code, it remains valid indefinitely. However, as per DGFT's Notification No. 58/2015-2020 (dated 12th February 2021), IEC holders must update their details annually between April and June to keep their IEC active. 

This update is mandatory even if there are no modifications in the existing information. Failure to update details can result in the deactivation of the IEC. 

6. GST Registration

GST Registration is a mandatory requirement for businesses engaged in exporting goods from India to overseas, regardless of their annual turnover. You can secure this registration online by visiting the official GST portal and filing an online application there. 

Once you successfully register, you will receive a GST registration certificate. This certificate contains Goods and Services Tax Identification Number (GSTIN), which helps to identify, track and verify the tax transactions and compliance.

Conclusion

For exporting sugar from India, it is essential for a business to secure all the necessary approvals. Some of the key licenses, certificates and registrations for the export of sugar are APEDA license, FSSAI license, DGFT-issued IEC, Company Registration Certificate issued, GST Registration and Certificate of Commencement of Business. 

If you need professional assistance in setting up a sugar export business, you can connect with our consultants at Registrationwala. We will help you obtain all the necessary approvals and assist you in ensuring compliance with all the legal and regulatory requirements. 

Frequently Asked Questions (FAQs)

Q1. Is GST registration mandatory for sugar exporters?

A. Yes, GST registration is mandatory for sugar exporters, regardless of their annual turnover.

Q2. Is an APEDA license required for exporting sugar from India?

A. Yes, an APEDA license is a mandatory requirement for exporting sugar from India. 

Q3. Which form needs to be filed with FSSAI to secure the FSSAI Central License?

A. Prescribed form “Form B” must be filed with FSSAI to secure the FSSAI Central License.

Q4. What is the validity period of the Import Export Code?

A. Import Export Code (IEC), issued by the Directorate General of Foreign Trade (IEC), comes with a lifetime validity. However, IEC holders need to update details every year to keep IEC active. 

Q5. Do I require a FSSAI license to export sugar from India?

A. Yes, you require a FSSAI license to export sugar from India. Without this license, it is not possible to conduct sugar export activities. 

Q6. Which country is the largest sugar exporter in the world?

A. At present, Brazil is the largest sugar exporter in the world. After Brazil, India is the largest sugar exporter.

 

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