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Legalities and Paperwork for Fertilizer import in India

calendar19 Feb, 2022
timeReading Time: 3 Minutes
Fertilizer import

Despite massive domestic production, the Indian Agri sector heavily relies on importing fertilizer. Fertilizer import in India is subjected to various legal implications. Apart from securing the Import-Export code, the importer needs to secure special permits from different institutes. This write-up cum guide would let you know all the legalities related to fertilizer import in India.

Mandatory licenses and special permits

In the majority of nations, government consent is required to become an importer. The foreign trade office of the concerned nation is accountable for granting such authorization. In India, the Directorate General of foreign trade[1] issues the import authorization to eligible applicants/entities.

Nowadays, in most nations, the detail of such registration for exporter-importer is linked with reserve bank, and custom location, as the process of exports and imports, are online digitalized.

Thus, the applicant seeking Fertilizer import in India is required to get in touch with government agencies of their importing nation to determine whether such onetime registration is mandatory or not.

Before we move to next section, let’s have a glance over some primary paperwork required for securing IEC Registration from DGFT.

  • PAN of company/individual
  • Copy of current or saving account canceled cheque reflecting firm’s name
  • Bankers certificate conferred by Bank Manager
  • Passport size photographs
  • Business’s Address proof

Additional permits for Fertilizer import in India

The process & legalities for fertilizer import in India may vary from one another and from nation to nation. Besides, different processes and legalities to import each item might differ under Fertilizers’ import. But, some of the ground requisites to import fertilizers in prominent nations are discussed below: 

Import consent via directly government agencies

Some of the imports under chemical fertilizers and nitrogenous are permitted via import authorization via government agencies of importing country. In India, urea is permitted to import via MMTC, State Trading Corporation, & Indian Potash limited.

Any items, import or export of which is regulated via exclusive or certain relaxations granted to STE(s), may be exported or imported by STEs as per the norms cited in ITC(HS).

DGFT may accord a permit to any other individual to export or import any of these goods. Such STE(s) shall make any such sales or purchases involving exports or imports solely in pursuant to commercial considerations, including quality, price, marketability transportation, & other conditions or sale in a non-illicit manner and shall afford entities of other nations adequate opportunity, in pursuant to customary business practices, to compete for participation in such sales or purchases.

Certificate of Origin (COO) to import Fertilizers

  • The origin source of imported Fertilizers is required in almost all nations. So an origin certificate granted by the competent authorities at exporting nation is required to import Fertilizers.
  • Certificate of origin (COO) aids in identifying imported goods’ origin to avail exemption on import taxes and duties.
  • Different unilateral, bilateral, & multilateral agreement between nations also permits imports and exports with exemption of import duties, where in COO is the sole proof on the nation of origin of importing goods.

Procedures Fertilizer import in India

The supplier & importer mutually agreed upon conditions relating to import sale before actual shipment of imports. Pricing, payment terms, quality specs, delivery norms, transport’s mode, and other conditions are agreed upon and cited in purchase order & import shipment is effected accordingly.

It is well-known that under importing of goods, fundamental import documents and customs clearance process at importing nation has to be completed either importer directly or importer’s customs broker as per FTP of concerned importing nation.

For importing Fertilizers, import-related documentation along with the bill of lading, packing list, commercial invoice, COO, and other required documentation is filed, and relevant import procedures are completed to take delivery of shipment.

Presently, the relevant information is filed electronically and produces required documents during the inspection, assessment, or shipment delivery at the destination customs location.

The international partners of nations share quality norms and are exempt from various inspection formalities on the same products both for import and export. But, as per the policy of most developed nations, the import of goods from LDC i.e., Least Developed Countries, need to be authenticated by authorized agencies prior to export. So for the importation of Fertilizers, the particulars of such details can be secured from relevant agencies of importing nations.

Conclusion

India produces considerable amount of fertilizer every year. However, the present production capabilities are not enough to meet domestic demand. This is the reason why every year India imports massive shipment of fertilizer to avoid supply chain disruption.

The documents and permits mentioned above are mandatory for importing fertilizers in India.  To avail these permits, you need to approach different authorities and fulfil different legal requisites.

Read our Article:Process to Set up Export and Import Business in India

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