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Importing and Exporting Vegetables from India to Bangladesh & Vice Versa under IEC

calendar19 Dec, 2020
timeReading Time: 5 Minutes
Importing and Exporting of Vegetables under IEC

Over the years, the export of organic products has reached a new height as the world begins to understand the importance of a healthy lifestyle. Bangladesh is the leading producer of organic products in the world right now. At present, the country is exporting wide varieties of vegetables to 40 different countries. If you are aiming to establish an organic products export business in Bangladesh then you are on the right page. In this blog, you will come across challenges, requirements, and legal obligations for setting a business for Exporting Vegetables from Bangladesh.

Opportunities Linked with the Export of Organic Items  

The major source of revenue of Bangladesh lies in the agricultural sector. The country constantly strives to improve existing agricultural infrastructure to meet global demand. The following would make you’re familiarized with challenges and opportunities related to the adoption of organic farming in Bangladesh. 

Key Challenges Linked with Organic Farming 

  • Drastic surge in the occurrence of natural calamities owing to climate change. 
  • Rampant use of pesticides and fertilizers accountable for degrading the quality of the agricultural produce as well as soil
  • Transition from conventional to organic farming
  • Organic farming is vulnerable to pest attack since it prohibits the use of pesticides. 
  • Lower production volume per unit area. 

All these obstacles have motivates the government to invest more capital in organic farming methodologies.

Opportunities under Organic Farming

  • Organic rice is high in demand, especially in the overseas market. It ensures good returns to the farmer.
  • Bangladesh’s climate and the land are highly suitable for organic farming. The harvesting can be done 365 days.
  • Owing to the ill-effect of pesticides, the farmer can be convinced to opt for organic farming in place of conventional farming. 
  • The labor in Bangladesh[1] accessible is at a lower price point.            

Read our article:Advantages of Obtaining IEC (Import Export Code) Registration in India

Things to Consider for Exporting Vegetables from Bangladesh

  • First of all, the exporter needs to set up an export house in Bangladesh and legalize it through a predetermined procedure in Exporting Vegetables. 
  • In the next step, the exporter is required to obtain valid tax registrations and other compulsory licenses such as Trade license, VAT certificates, and TIN. 
  • Income generated through export cannot be transacted via a personal account, therefore; exporters is required to open a current account in designated banks. 
  • The next thing exporter needs to do is to approach the Chief Controller of Import and Export in order to obtain the Export Registration Certificate. Keep in mind that this certificate is mandatory for conducting the exporting business in Bangladesh. 
Note: If you wish import vegetable in your native country i.e. India, then you will be required to obtain the IEC certificate from the DGFT India
  • Proceeding further, the exporter must reach out to the Export Promotion Bureau and other relevant authorities to avail of compulsory licenses and registration. 
  • After obtaining all these certificates, the exporters must identify the interested foreign buyer while Exporting Vegetables.
  • Based on the country of import and specific product, the foreign buyer might ask for further certification and registration from the exporter. 
  • After finalizing the shipping agent, the exporter must visit the Clearing and Forwarding Agent for obtaining the necessary custom clearance documents
  • And last but not least, the exporter, before dispatching the shipment of their goods, must ascertain the labeling and packaging requirements of the country of import. 

Exporting Vegetables from Bangladesh

EU and Middle-East are primary buyers of organic vegetables from Bangladesh. All exporters are required to ascertain the procedures mentioned in the HS code 07 before exporting their produce to the Middle East. Apart from the aforesaid prerequisites, the exporter also required a Phytosanitary Certificate for exporting organic vegetables. Additionally, there is also a legal obligation on Bangladesh-based exporters to secure a Certificate of Origin from a concerned authority to avail exemption from Import tariff at Customs.

Thus; for dispatching agro-produce to the EU, the exporters must get involved with contract farming methods for the production of fresh vegetables. Moreover, the exporter can also obtain a GSP certificate by filing an application at the Bangladeshi Export Promotion Bureau. This certificate will help the exporters to avail of duty-free benefits.

 After meeting the above requirement, you will become eligible for exporting vegetable from Bangladesh.

Legal Requirement to be Addressed for Importing & Exporting Vegetables from Bangladesh

  • Certification of membership from the Dhaka Chamber of Commerce and Industries
  • Vegetable & Fruit Production Contract
  • Airway Bill & Gate Pass
  • Enrolment Certificate from the Bangladesh Export Promotion Bureau
  • IEC Code from DGFT India for importing vegetable
  • Writ contract with Clearing and Forwarding Agent for addressing customs liabilities. 
  • BFVAPEA Membership Certificate from a concerned Sector Association
  • Export Registration Certificate
  • Horticultural Products Exporter Registration
  • Final Custom Clearance related to inspection and verification

Other Sanitation & Health Certificates

Other Sanitation Health Certificates

Online Procedure for Obtaining Import Export Code from DGFT India

Import and Export Code is an absolute necessity in case of importing commodities as well as Exporting Vegetables to India from the overseas location. Import and Export Code (aka IEC) is government-based registration which permit the individual to engaged with cross border trade. The Directorate General of Foreign Trade (DGFT) is an apex body that issues this certificate in India.  The procedure for obtaining IEC is completely online.  All you need to visit the DGFT’s official portal and follows the given instructions. 

  • On the DGFT’s home page, locate and select the “Apply for IEC” option. 
  • Window with multiples blank field shall appears on your computer screen.
  • On this page, provide all your basic information such as name, address & contact info.
  • Once you are done with the above requirement, select “Send OTP” option.  This will command the portal to send the One Time Password to the email and phone number.
  • After receiving the OTP, get back to portal’s home page and select the “Apply IEC” option to complete the login requirement.
  • After login, you will come across the web-based form of IEC
  • While filing the application form, make sure to provide legit information against the option such as ownership type and bank details.   After that upload the copy of the cheque (cancelled one) and select the “Save and Next” option.
  • Next , opt the options in the given sequence :- Preferred sectors of operations> Acceptance of Undertaking/Declaration>Save and Next>Sign.
  • Lastly, completes the payment requirement by submitting the requested fees.  Head over to the “Managing IEC” option to download the hard copy of the IEC certificate. Exporting vegetable would become an easy task after obtaining the IEC certificate.

Conclusion 

The agriculture sector in Bangladesh is thriving rapidly, which inherently makes exporting vegetable a profitable form of business. Some of the prominent organic products in Exporting Vegetables which Bangladesh exported worldwide are brinjals, cabbages, coriander Leaves, cabbages, tomatoes, cucumbers, and lady’s fingers.

This country has a lot of potential in the agricultural sector which opens the door of opportunities for foreign traders. If you want to capitalize on such a sector then start investing in the business by setting up an export house in Bangladesh as well as Import houses in India for organic products. 

Read our article:What is the IEC Registration Process in India?

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