TDB Forum Ask A Question August 2016 March 2018 issue

TDB Forum Ask A Question August 2016

In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in forthcoming issue of The Dollar Business

I want to export non-Basmati rice to Gulf countries, Singapore and Malaysia. I have an IEC. How do I start? Can The Dollar Business help me in this endeavour? (K. Selvam, Owner, Davam Exporters, Pudukkottai, Tamil Nadu, [email protected], +91-9629276XXX)

Dear Selvam: Usually, there is a restriction on exports of non-basmati rise from the country. However, currently exports of non-basmati rice (falling under ITC HS Codes: 100620, 10063000, 10063010, 10063090, 10064000) is free if exports are undertaken by private parties from their privately held stocks through Custom EDI (Electronic Data Interchange) ports. Export is also permitted through the non-EDI Land Custom Stations (LCS) on Indo-Bangladesh and Indo-Nepal border subject to registration of quantity with DGFT. Registration Certificate is required for non-basmati rice only when it is exported to Bangladesh and Nepal through non-EDI LCS.

While India’s biggest export destinations for rice (both basmati and non-basmati) are the countries in the Middle East and Gulf, the country has also been significantly supplying non-basmati rice to African countries and the exports have been only rising to these countries over the last few years. In case you want a detailed report on the potential of your product across a particular geography or market, you can type the following URL in your browser: https://in.thedollarbusiness.com/memberships and subscribe to one of the several programmes that The Dollar Business offers. Under these membership programmes, The Dollar Business will not only analyse the export-import potential of the product of your choice but will also provide you with tools that will ensure your EXIM business operates more efficiently.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business


I am a distributor of pharmaceutical products. I have an IEC. I want to know what are the requirements that a pharmaceuticals manufacturer needs to fulfil under WHO-GMP? Are there any specific conditions when it comes to exporting to UK? (Smi Farook, Owner, S. M. Associates, Hyderabad, Telangana, [email protected], +91- 9030006XXX)

Dear Smi: Good manufacturing practice (GMP) is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimise the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product. GMP is aimed primarily at diminishing the risks inherent in any pharmaceutical production, which may broadly be categorised in two groups: cross contamination/mix-ups and false labelling. The main risks include: unexpected contamination of products, causing damage to health or even death; incorrect labels on containers, which could mean that patients receive the wrong medicine; insufficient or too much active ingredient, resulting in ineffective treatment or adverse effects.

GMP covers all aspects of production – from raw materials, premises and equipment to training and personal hygiene of staff. Detailed, written procedures are there for each process that could affect the quality of the finished product. You can type the following URL in your browser: http://www.who.int/medicines/areas/quality_safety/quality_assurance/TRS986annex2.pdf to go through the guidelines.

Please remember, most countries will only accept import and sale of medicines that have been manufactured to internationally recognised GMP like the one from WHO. Manufacturers seeking to export pharmaceuticals can do so by making GMP mandatory for production process and by training their staff in GMP requirements.
When it comes to exporting to United Kingdom, you need a licence from the Medicines and Healthcare Products Regulatory Agency (MHRA), an agency of the Department of Health, Government of UK. MHRA issues certificate for the importation of a pharmaceutical constituent, which certifies if a chemical or ingredient can be used as a medicine or as an ingredient of a pharmaceutical product in UK. Apart from that you need to adhere to the various quality, safety and manufacturing standards and guidelines [for instance, human medicines imported from outside the European Economic Area (EEA) must be manufactured in accordance with EU-GMP or to equivalent standards] laid down by MHRA.

Response by: Manish K. Pandey, Editor, The Dollar Business


I am a manufacturer of flush, membrane and lamination doors. I am currently selling my products in the domestic market, but now I want to export. How do I start? (Kishore Patel, Proprietor, Jyothi Interiors, Hyderabad, Telangana, [email protected], +91-9963114XXX)

Dear Kishore: First of all, you need to obtain an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. Application for obtaining IEC can be filed online on the DGFT website. The manual mode of applications for fresh IEC issuance or IEC modification cease to exist since April 1, 2016. DGFT now only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents. Having said that an online application for IEC, however, can only be made using Digital Signature Certificate (DSC; Class II & III). You can type the following URL in your browser: https://in.thedollarbusiness.com/memberships and subscribe to one of the several programmes that The Dollar Business offers to ensures that getting started with foreign trade is just a glide for you!

Response by: Indranil Das Executive Editor, The Dollar Business


I plan to export dresses, including sarees, to conduct exhibition-cum-sale in US. I have identified a few local residents there to conduct the exhibition. I already have an IEC code. Please let us know the export procedure. Also, how can I identify more buyers? I haven’t registered my company yet. (Hanara, Managing Director, Kundhar, [email protected], +91- 8008684XXX)

Dear Hanara: Only EOU, EHTP, STP, and BTP units may export goods for holding / participating in exhibitions abroad, with permission of Development Commissioner, and after fulfilling certain conditions. And as far as identifying buyers is concerned, you can approach your concerned EPCs – The Cotton Textiles Export Promotion Council (TEXPROCIL), Indian Silk Export Promotion Council, Apparel Export Promotion Council (AEPC), Handloom Export Promotion Council, etc. – for assistance or directly reach out to potential buyers by posting your product information on https://in.thedollarbusiness.com/marketplace. From discovering the best markets to source from or supply to, to overcoming statutory and procedural challenges with respect to exports-imports documentation, to identifying the right logistics partners, The Dollar Business International Marketplace understands all your requirements and accordingly connects you with the right market and partners so that you can make a fortune out of foreign trade.

Response by: Dr. A. K. Sengupta Chief Consulting Editor, The Dollar Business