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21 Apr, 2025
By Online Legal India
Published On 28 Nov 2020
Updated On 03 Apr 2025
Category IEC
India is one of the largest producers and exporters of tea in the world. To legally export tea a businesses must obtain an Importer Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT). This 10-digit code is mandatory for customs clearance and international trade transactions. Without an IEC, exporting tea is not permitted that limits new business opportunities. The IEC simplifies export documentation, facilitates access to government incentives, and enhances business credibility. It also helps exporters comply with tax regulations and trade agreements. In this guide we have discussed the importance of IEC for exporting tea.
To open a tea export business in India requires careful planning and compliance with legal regulations. Here is a step-by-step guide to help entrepreneurs set up a successful export venture:
The first step is to establish a legal business entity. Entrepreneurs can register as a Proprietorship, Partnership, LLP (Limited Liability Partnership), or Private Limited Company. A registered business structure ensures legal compliance and helps to obtain other necessary licenses.
To legally export tea, businesses must acquire. (We have discussed thoroughly below)
The Importer Exporter Code (IEC) from DGFT is mandatory for exports. Without this, customs authorities will not allow shipments to be sent outside India. IEC is a simple online process through the DGFT portal.
The quality of tea is crucial for international buyers. Exporters should source tea from reputable tea gardens, government-approved auctions, or verified wholesalers to maintain consistent product quality. Visit tea estates and build a strong supplier relationships can ensure a steady supply of high-grade tea.
It is essential to study global markets before export, demand trends, and potential buyers. Some of the key importers of Indian tea include Russia, Pakistan, the USA, the UK, UAE, Germany, and Japan. Building connections with tea importers, wholesalers, and retailers in these countries can help to establish long-term trade relations.
International buyers look for well-packaged and branded products. Exporters should focus to create an attractive and export-compliant packaging, such as labeling details like product origin, FSSAI certification, ingredients, and shelf life. Packaging plays a significant role in attracting premium customers in foreign markets.
e.g. - The shelf life of imported tea varies on the country’s government policies and MOU () agreement Here are some example of typical Shelf Life of Tea in these countries.
Choosing the right logistics partner is crucial to tea safely and on time. Exporters should Partner with freight forwarders experienced in handling tea exports. Select the most cost-effective and reliable shipping methods (air or sea freight). Ensure proper documentation for smooth customs clearance. Consider warehousing options in foreign markets for faster distribution.
Exporters need to have a foreign currency bank account to receive international payments. Many Indian banks require an IEC code to open such an account. Using secure payment methods like Letter of Credit (LC), PayPal, or bank wire transfers ensures safe financial transactions.
Exporters must comply with international trade regulations, such as, Customs documentation such as Bill of Lending, Packing List, and Commercial Invoice. Quality checks and certifications to meet the import country’s standards.
To grow a tea export business, exporters must focus on branding and promotions. An Import Export Code (IEC) is essential for marketing and promoting a tea export business because it is a prerequisite to list products on international B2B marketplaces like Amazon, IndiaMART, and TradeIndia. Without IEC, businesses cannot officially register as exporters. Additionally many international trade fairs and exhibitions require participants to have an IEC as proof of their legitimacy in export trade. It also enables businesses to run cross-border digital marketing campaigns and accept foreign payments.
Proper planning, compliance with legal requirements, and strong marketing strategies can help exporters achieve long-term success in international markets.
To apply for an Importer Exporter Code (IEC), you need to submit the following documents:
All documents must be clear and legible to ensure smooth IEC approval by DGFT.
To apply for the IEC registration process, follow these steps:
An IEC is essential for any tea exporter looking to build a profitable and legally compliant international business. Here we have discussed the key reasons to obtain an IEC.
The Importer Exporter Code (IEC) is a mandatory document for businesses involved in tea export from India. Without an IEC, customs authority will not allow the shipment to be processed that makes impossible to conduct legal exports. This requirement ensures that only registered businesses are engaged in international trade to reduce the risk of fraudulent transactions.
Exporting tea requires multiple clearances at different levels, and the IEC simplifies this process. Customs authorities use the IEC to verify an exporter’s identity. It speeds up customs procedures, ensures stress-free verification and reduces shipment delays. A smooth clearance process also helps exporters maintain a steady supply chain it prevents financial losses due to delayed consignments.
IEC allows tea exporters to sell their products in international markets without any restrictions, by enhancing the quality and safety standards. Countries such as Russia, the USA, the UK, UAE, Germany, and Japan are major consumers of Indian tea. Without this code businesses cannot expand their reach beyond domestic trade that limits their growth opportunities.
The Government of India offers several financial benefits and subsidies to registered exporters under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and MEIS (Merchandise Exports from India Scheme). These incentives help reduce overall export costs and make Indian tea more competitive in the global market. Without an IEC, businesses are not eligible to apply for these schemes and may end up paying higher taxes and duties.
Exporters need an IEC to open a foreign currency bank account and process international payments securely. It serves as proof of legitimate export activity. Businesses may face difficulties without an IEC when they/it receive payments from overseas buyers. It leads to financial losses and missed opportunities.
Every country has its own set of trade policies, and exporters must comply with these regulations to avoid legal complications. The IEC ensures that exporters follow the Directorate General of Foreign Trade (DGFT) guidelines and meet all international trade standards. This compliance reduces the risk of shipment rejections, penalties, or bans imposed by foreign governments.
International buyers and suppliers prefer to deal with registered exporters because it guarantees the authenticity of the business. An IEC boosts credibility by serving as proof of a legitimate export operation. Many foreign clients hesitate to work with unregistered exporters due to concerns about reliability and fraud. With an IEC, tea exporters can build long-term relationships with global buyers and expand their business network.
Unlike many other business licenses that require periodic renewal, the IEC is issued for a lifetime. Once obtained, exporters do not have to worry about additional renewal costs or compliance procedures. This one-time registration ensures that businesses can continue exporting tea without administrative burdens it allow them to focus on expansion and profitability.
An Import Export Code (IEC) is mandatory for online and B2B trade because it serves as a unique business identification number required by customs and government authorities for international transactions. Marketplaces like Amazon, eBay, and IndiaMART mandate IEC to verify exporters and ensure compliance with trade regulations. Without IEC, businesses cannot list products for export, receive international payments, or clear goods through customs.
Businesses must acquire certain licenses and registrations before exporting tea from India. These licenses ensure compliance with legal, safety, and trade regulations it makes the export process smooth and hassle-free. Below is a detailed explanation of each requirement.
The Tea Board of India operates under the Ministry of Commerce and Industry. It is responsible to regulate and promote the tea industry. Any business owner, who has planned to export tea must register with the Tea Board to get an Exporter’s License and Registration Cum Membership Certificate. This ensures the tea being exported, meets the quality standards set by the government. Additionally exporters benefit from the Tea Board’s support programs, like market intelligence and promotional assistance, etc.
Because tea is a consumable product FSSAI license is mandatory for exporters. The FSSAI ensures that the tea, which is being exported meets food safety and hygiene standards. Exporters must obtain this license to legally sell their tea in international markets, as many importing countries require proof of food safety compliance. Without an FSSAI certification the goods may be is a rejected at foreign customs.
The Goods and Services Tax (GST) registration is compulsory for businesses involved in tea exports. This registration helps in tax compliance and allows exporters to claim GST refunds under the zero-rated supply policy, it means exporters do not have to pay GST on exported goods and additionally helps to maintain proper financial records.
APEDA is a government body that facilitates and promotes agricultural exports, including tea. APEDA provides exporters with several advantages to registered businesses, such as financial assistance for market expansion, participation in international trade fairs, and access to government schemes for exporters. APEDA also ensures that the exported tea meets international quality standards and packaging requirements.
In conclusion, obtaining an IEC code is essential for anyone looking to export tea from India. It not only ensures legal compliance but also simplifies customs clearance and international transactions. With an IEC, exporters can expand into global markets, access government incentives, and build business credibility. For tea exporters aiming for long-term success in international trade, getting an IEC is the first and most crucial step. If you want to start your tea exporting business, be in touch with the country's own business solution platform Online Legal India, where India's recommendable legal experts and business advisors will provide you the needed assistance to get a registered Import Export Code at the quickest of all, at an unbeatable price.
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