Owing to the expansion of digitalization and market outlets, the companies dealing with FMCG products witnessed tremendous domestic sales in the last few years. The government is aggressively endeavoring to inculcate a new strategy to encourage the export of these products.
First-quarter of 2020 brings good news for the exporter as the DGFT announced the new online platform for IEC registration. The updated platform will allow the exporters and importers to obtain the IEC registration in minutes. In the blog, we would provide comprehensive information on the prerequisite required to export of FMCG product from India.Â
What are the Fast-Moving Consumer Goods (FMCG)?
Fast-moving consumer goods (FMCG) are also being referred to as consumer packaged goods (CPG) which are the class of products that tends to sell promptly and at an affordable price tag. FMCG product is typically known as non-durable household items such as beverages, cosmetics, packaged goods, dry goods, candies, and other consumables. FMCG is the generalized term used across most of Asia, Europe, and Oceania.
What are the Characteristics of FMCGs?
The following are the most common traits of Fast-moving consumer goods (FMCG)
From the Consumer’s Viewpoint
- Frequent purchases
- Negligible engagement
- Affordable price point
- Lower Shelf life
- Prompt consumption pattern
- Price comparison during web-based purchase by consumers
From the Marketer’s Viewpoint
- High volumes
- Extensive distribution
- Low contribution margins
- High inventory turnover
Registration and Licenses For the Export of FMCG Product
The list below explains the type of documents you will need to arrange for setting up a business of export of FMCG product.
FSSAI License
FSSAI food license primarily regulates the food business operators in India. If you want to export non-durable household items such as beverages, candies, dairy products, or other edible items to the overseas market, then you will be required to obtain this very license.
Import Export Code (IEC)
The Directorate General of Foreign Trade grants IEC. Import Export Code is an absolute necessity for exporter and importer in India. There is no way you can execute your international orders in the absence of this certification.
APEDA License
APEDA stands for Agricultural and Processed Food Products Export Development Authority. It is a government-driven entity that works for the betterment of the exporter dealing in agro-based products. Given the Export of FMCG product, the APEDA registration is compulsory for the exporters. To avail of such registration, one has to secure the Import Export Code in the first place.Â
MSME Registration
MSME is an abbreviated term for Micro, Small, and Medium Enterprise. MSME is an imperative part of India’s Government, and it emphasizes the growth of the struggling sector. MSME is running tons of growth-centric schemes for the upliftment of the small business entities operating pan India. However, those schemes are only accessible to registered users. Udyog Addhaar Registration is a portal that will allow you to avail of MSME registration, which will be done with minimum of hassles.Â
Incorporation Certificate
You probably won’t be managed to secure enough export orders if your firm is not registered. Having an incorporation certification means your company is willing to work in a legal framework and it won’t bypass any regulation that hinders its existence. This would probably help in creating a strong image in the international market. So, a Certificate of incorporation is not an option; rather, it’s an absolute necessity.
Trademark Registration
Trademark registration would be beneficial in case if you are engaged with the selling of your own brand. Since logo, tagline, and other invaluable intangible assets are susceptible to infringement, it is a good idea to obtain a trademark registration.Â
ISO Certificate
ISO 9001 is a globally recognized certificate associated with the quality management system. It’s a tedious affair to avail of such a certification due to countless requirements and compliances. Securing this globally recognized standard can help attract ample foreign buyers in a short span of time. We prefer you contact with CorpBiz’s associate to grab more information on that.
Step by Step Guide to obtain IEC Registration for export of FMCG Product
A few months back, the Directorate General of Foreign Trade announced the arrival of a new online platform for the IEC registration. The new platform was launched to reduce the manual intervention while making an application for import export code. The following section exhibits the procedural instructions for obtaining the IEC registration online.
- Reach out for the DGFT’s[1] official portal from your web browser.Â
- As soon as you visit the home page, use the “Apply for IEC” button to start the registration process.Â
- Now, you will be redirected to the page to fill in the basic registration details such as name, email address, contact number, and address details.Â
- The next step is to select the Send OTP option for verification purposes. By clicking this option, you will receive the One Time Password on your phone and email id in a few seconds. Once you received the OTP, revisit the home page, and click on the “Apply IEC” button.Â
- Try to login with the credential provided by the portal. After a successful login attempt, you will be promoted to fill a web-based form.Â
- Now, you are required to fill in the requested details listed in the IEC registration form.Â
- Select the ownership type, enter the bank details, upload the canceled cheque copy, and hit the “Save and Next” button.
- Proceeding further, selects the preferred sectors of operations followed by Acceptance of Undertaking/Declaration. Â
- Click the “Save and Next” button, followed by the Signup tab.Â
Then you are supposed to choose the methods for submitting the online application either via Aadhar OTP or DSC (Digital Signature Certificate). After signing and submitting the online application, move ahead to submit an online fee regarding the same. You were required to pay a sum of rupees 500 as the fee for an online application.
After addressing the aforesaid requirement, you can download the receipt from the same portal for future reference. For downloading the hardcopy of the certificate, go to the Managing IEC option and then select the Print certificate.
Conclusion
Once you availed of the aforesaid certification, you will become eligible for the export of FMCG product. If you encounter any technical issues in that regard, get in touch with Corpbiz expert with any second thought. Here your queries related to documentation and registration will be resolved with utmost care.Â
Read our article: What is the Business Utilization of the Import Export Code in India?
