Exporting chemicals from India: documents, DGFT and IEC

India is one of the world's major exporters of chemicals, from dyes, pigments and agrochemicals to APIs, specialty intermediates and basic inorganics. For a manufacturer or trader starting to export, the paperwork can look daunting. In practice it follows a clear sequence: register once, check the product against export controls, meet the destination country's rules, prepare the documents and file the shipping bill. This guide covers each step.

It is general information, not legal advice. Policies, incentive rates and procedures change regularly, so check the current DGFT and CBIC notifications or ask your customs broker before each new product or market.

One time registrations#

• Importer Exporter Code (IEC). Issued online by the DGFT, linked to your PAN and required for exports. It must be updated on the DGFT portal once a year, even if nothing has changed.
• GST registration. Exports are zero rated under GST. You can either export under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim a refund. Most regular exporters file an LUT every financial year.
• Authorised Dealer (AD) code registration. Your bank's AD code must be registered with customs at each port you export from, so that export proceeds and incentives can be linked to your shipments.
• Registration-cum-Membership Certificate (RCMC). Needed to claim many benefits under the Foreign Trade Policy. Chemical exporters usually register with CHEMEXCIL (basic chemicals, cosmetics and dyes), and pharmaceutical exporters with Pharmexcil. Plastics exporters use PLEXCONCIL.
• ICEGATE registration for filing customs documents electronically, usually done through your customs broker.

Step 1. Check export controls#

Most chemicals can be exported freely, but you must check before you quote, not after.

Export policy. The DGFT's ITC(HS) export schedule marks each code as free, restricted or prohibited, sometimes with conditions such as quantity caps or registration requirements.

SCOMET. India's list of Special Chemicals, Organisms, Materials, Equipment and Technologies controls dual use items. Category 1 covers toxic chemical agents and other chemicals, aligned with the Chemical Weapons Convention schedules and the Australia Group lists. Some items are prohibited, and others need an export authorisation from the DGFT before shipment. Mixtures can also be controlled above set concentrations.

Chemical Weapons Convention declarations. Companies that produce, process, consume, export or import scheduled chemicals above threshold quantities have declaration duties to India's National Authority for the Chemical Weapons Convention, and trade in some scheduled chemicals with countries outside the convention is restricted.

Narcotic precursors. Exports of drug precursors controlled under the NDPS Act and the NDPS (Regulation of Controlled Substances) Order, 2013 need registration and a no objection certificate for each consignment, and the importing country usually requires its own authorisation as well.

Drugs. Exporting APIs and medicines requires the appropriate manufacturing licence, and some exports need a no objection certificate from CDSCO, for example for products not approved in India.

Step 2. Meet the destination country's rules#

The importer is usually responsible for compliance in its own country, but an exporter who cannot provide the right information will lose the sale. Ask the buyer early which of these apply:

• EU: REACH registration for substances above one tonne per year, through the EU importer or your own only representative, and CLP compliant labels and SDS in the local language.
• United States: TSCA inventory status and import certification, FDA requirements for drugs and food ingredients, and a GHS based SDS under the US hazard communication standard.
• Other markets: chemical inventories and registration schemes in countries such as South Korea, Japan, China, Turkey and the UK, plus licences for drugs, pesticides and food additives.
• Labels and SDS in the destination language and format.
• Pre shipment inspection required by some importing countries for certain goods.
• Document legalisation. Some countries require invoices and certificates of origin to be attested by a chamber of commerce or legalised by their embassy.

Step 3. Prepare the goods#

For hazardous chemicals, compliant packing is as important as the paperwork.

• Classify the product for transport: UN number, class and packing group. The SDS section 14 should state them.
• Use UN approved drums, IBCs or other packaging marked for the right packing group, and fill within the rated limits.
• Mark and label each package with the UN number, proper shipping name and hazard labels, plus your product label.
• Book with a shipping line that accepts the class, and give the forwarder the dangerous goods declaration and SDS in good time.

Our guide to shipping dangerous goods explains classes, packing groups and packaging codes in more detail.

Step 4. Prepare the documents#

A typical chemical export file includes:

Preferential and most non preferential certificates of origin are applied for through the DGFT's online certificate of origin platform. Under a letter of credit, every document must match the credit terms exactly, so check the LC wording against what you can produce before you accept it.

Step 5. File the shipping bill and ship#

1. Your customs broker files the shipping bill on ICEGATE with the invoice, packing list and any licences.
2. Customs assesses it through its risk management system. Goods may be examined at the port or container freight station. Exporters approved for self sealing can stuff and seal containers at their own premises with electronic seals.
3. Customs gives the let export order, and the goods are loaded.
4. The shipping line issues the bill of lading.
5. The shipping bill and bill of lading are used to track the export proceeds and claim incentives.

Step 6. Get paid and claim benefits#

Payment terms. For new buyers, a letter of credit or a substantial advance protects you. Documents against payment keeps control of the goods through the documents but without a bank guarantee. Credit terms such as documents against acceptance or open account are best kept for established customers, ideally with export credit insurance.

Realising export proceeds. Under foreign exchange rules, export proceeds must be realised within the period allowed by the RBI. Your bank reports the receipt, and an electronic bank realisation certificate (eBRC) is generated on the DGFT platform.

Export incentives. Depending on the product and current policy, you may be able to claim:

• Duty drawback, refunding customs and some excise duties on inputs, usually at the all industry rates published for each tariff item
• RoDTEP, remission of duties and taxes on exported products, at notified rates for eligible items
• Advance Authorisation, allowing duty free import of inputs that are physically used in export products
• EPCG, allowing import of capital goods at zero duty against an export obligation

Rates and eligibility change, so check the current schedules before you price an export order.

Practical tips for new exporters#

• Know your HS code and controls before quoting. A sale that needs a SCOMET authorisation or a precursor NOC needs extra time.
• Quote clearly. Name the Incoterm and place, the validity, the packing and the documents included. See Incoterms 2020 for chemical buyers.
• Keep a destination checklist for each country you sell to, covering labels, SDS format, registrations and document legalisation.
• Send samples properly. Hazardous samples sent by courier or air must follow the dangerous goods rules for air, which are strict on quantities and packaging.
• Use trade data to find markets. CompoundList's trade pages show, for each HS code, which countries import the most from India and the world, based on official country level trade statistics.

Reach buyers worldwide#

A CompoundList supplier profile lets buyers in every country find your products by name, CAS number or structure. Free accounts can list up to 25 products, and yearly memberships add bulk catalogue upload, buy leads and more visibility. Start selling or see the plans.