The document discusses import and export procedures for agricultural commodities in India. The import procedure has two phases: applying for an import permit and inspecting imported goods upon arrival to prevent diseases. Inspection involves sampling, testing, and post-entry quarantine. The export procedure involves inspecting goods to certify they meet importing country requirements, which can include sampling, testing, and examinations. Both procedures aim to facilitate trade while protecting against pests and diseases.

1. Import & Export Procedure
'Import Procedure'
This involves two phases:-
 Issue of Import Permit: An Importer intending to import agricultural commodities has to apply in
advance for the issue of Import Permit in respect of the commodities listed in Schedule V and VI of
PQ Order, 2003 in the prescribed form. The procedure to be followed has been shown in the flow
chart at Annexure-II
 Inspection of imported agricultural commodities on arrival at the port of entry for
preventing the introduction of exotic pests and diseases inimical to Indian Fauna and
Flora through implementation of DIP Act, 1914 and Plant Quarantine (Regulation of
Import into India) Order, 2003 issued thereunder.
The import clearance involves various steps from receipt of reference from Customs until
recommendation for its release or otherwise to the Customs including sampling, detail testing viz.,
bacteriological, mycological, entomological, nematological, etc., besides the post entry quarantine (PEQ)
testing at the importers premises under the PEQ facility. The flow chart for import inspection and
clearance is attached (Annexure-III). The post entry quarantine inspections which are required in case of
cuttings, saplings and bud woods are carried out by the Designated Inspection Authorities constituting
mainly the head of the Department of Entomology/Plant Pathology of the Sate Agricultural
Universities/ICAR Institutions.
 Undertaking Post Entry Quarantine Inspection in respect of identified planting materials:
In line with the New Policy on Seed Development, 1988 and the provisions of PQ Order,
2003, the specified planting material for propagation (viz., cuttings, saplings, bud
woods, etc.) require growing under Post Entry Quarantine for a specified period. The
import permit for such planting material is granted based on a certificate
fromDesignated Inspection Authorities of the concerned jurisdiction stating that the
importer possesses the post entry quarantine facility for the imported planting
material. Such consignments are released with the intimation to the concerned
Inspection Authorities for conducting further PEQ inspections and the final clearance is
granted based on the PEQ Inspection Report.
More details could be seen at http://plantquarantineindia.org/impo.htm
‘Export Procedure’
Inspection of agricultural commodities meant for export as per the requirements of importing
countries under International Plant Protection Convention (IPPC) 1951 of FAO as per the model
certificates prescribed under IPPC and issue Phytosanitary Certificate:
The export inspections are carried out to facilitate certification of exportable plants and plant material as
per the requirement of importing country in line with the above Convention. The export inspections
involves sampling and detailed laboratory tests in case of seeds and planting material for propagation
whereas visual examination with hand lens and washing tests, etc are c arried out for plant material meant
for consumption. The export inspections are conducted at exporters’ premises also to facilitate exports for

2. agricultural commodities meant for consumption. The flow chart for various steps involved in export
certification is at Annexure-V.
More details could be seen at http://plantquarantineindia.org/expo.htm
Annexure-V

3. TOP ^
Annexure-II

4. TOP ^

5. Annexure-III

6. TOP ^
Annexure-IV
List of Inspection Authorities for Certification of Post entry quarantine facilities and
inspection of growing plants
S
. No.
(
1)
State/Union
Territory
(2)
Jurisdictio
n
(3)
Designated Inspection
Authorities.
(4)
1
.
Andaman &
Nicobar Islands
Entire Union
Territory
Officer-in-charge,
Indian Council of Agricultural
Research,
Research Complex, Port Blair.
2
.
Andhra Pradesh Entire State Head, Division of Plant Pathology,
Andhra Pradesh Agricultural
University,
Hyderabad.
3
.
Arunachal Prad
esh
Entire State Joint Director,
Indian Council of Agricultural
Research,
Research Complex for North-
Eastern Hill Region,
Arunachal Pradesh Center,
Basar, Arunachal Pradesh.
4
.
Assam Entire State Head, Division of Plant Pathology,
Assam Agricultural University,
Jorhat.

7. 5
.
Bihar Except
North and South
Chota Nagpur,
Santhal Region
Head, Division of Plant Pathology,
Rajendra Agricultural University,
Pusa, Bihar.
6
.
Bihar North and
South Chota
Nagpur, Santhal
Region.
Head, Division of Plant Pathology,
Bisra Agricultural University,
Ranchi, Bihar.
7
.
Chandigarh Entire Union
Territory
Head, Division of Plant Pathology,
Punjab Agricultural Universitgy,
Ludhiana..
8
.
Daman & Diu Entire Union
Territory
Head, Division of Plant Pathology,
Gujarat Agricultural Universitty,
Banaskantha.
9
.
Delhi Entire Union
Territory
Head, Division of Plant Pathology
and Mycology,
Indian Agricultural Research
Institute,
New Delhi –110012.
1
0.
Goa Entire State Officer-in-charge,
Indian Council of Agricultural
Research,
Research Complex for Goa, Ele
Farm, Ele, Old Goa-403 402.

8. 1
1.
Gujarat Entire State Head, Division of Plant Pathology,
Gujarat Agricultural University,
Dantiwada.
1
2.
Haryana Entire State Head, Division of Plant Pathology,
Haryana Agricultural University,
Hissar.
1
3.
Himachal Prade
sh
Entire
State(Agriculture)
Dead, Division of Plant Pathology,
Himachal Pradesh Krishi Vishva
Vidyalaya,
Palampur.
1
4.
Himachal Prade
sh
Entire State
(Horticulture and
Forestry)
Head, Division of Plant Pathology,
Dr. Y.S. Parmar University of
Horticulture and Forestry, Solan.
1
5.
Jammu &
Kashmir
Entire State Head, Division of Plant Pathology,
Sher-e-Kashmir Agricultural
University of Science and Technology,
Srinagar/Jammu
1
6.
Karnataka, Shimoga,
Chitterdurga,
South Kanada,
Chickmaglur,
Kolar, Bangalore,
Hassan, Coorg,
Mandya, Mysore
Head, Division of Plant Pathology,
University of Agricultural Sciences,
Bangalore 560067.
1
7.
Karnataka Belgaon,
Bellary, Bidar,
Bijapur, Dharwar,
Head, Division of Plant Pathology,
Dharwar University of Agricultural

9. Gulbarga, Raichur
and Uttar Kannada
Sciences,
Dharwar.
1
8.
Kerala Entire State Head, Division of Plant Pathology,
Kerala Agricultural University,
Trichur.
1
9.
Laskshadweep Entire Union
Territory
Head, Division of Plant Pathology,
Kerala Agricultural University,
Trichur.
2
0.
Madhya
Pradesh
All districts
of state except
Raipur, Durg,
Rajnandgaon,
Bilaspur, Rajgarh,
Surguja and
Bastar
Head, Division of Plant Pathology,
Jawahar Lal Nehru Krishi Vishva
Vidyala,
Jabalpur.
2
1.
Madhra Prades
h
Raipur,
Durg,
Rajnandgaon,
Bilaspur, Rajgarh,
Surguja and
Bastar
Head, Division of Plant Pathology,
Indira Gandhi Krishi Vishva
Vidyalaya,
Raipur.
2
2.
Maharashtra Konkan and
Revenue Division
of Bombay
Head, Division of Plant Pathology,
Konkan Krishi Vidyapeeth, Dapoli.
2
3.
Maharashtra Revenue
Division of Pune
and Nasik
Head, Division of Plant Pathology,
Mahatma Phule Agricultural
University,
Rahuri.

10. 2
4.
Maharashtra Revenue
Division of
Aurangabad
(7 districts)
Head Division of Plant Pathology,
Marathwada Agricultural
University,
Parbhani.
.
2
5.
Maharashtra Revenue
Division of Nagpur
and Amravati
Head Division of Plant Pathology,
Punjab Rao Krishi Vidyapeeth,
Akola.
2
6.
Manipur Entire State Indian Council of Agricultural
Research,
Research Complex for North-
Eastern Hill Region,
Manipur Center, Lamphelpat,
Manipur.
2
7.
Meghalaya entire State Indian Council of Agricultural
Research,
Research Complex, Meghalaya.
2
8.
Mizoram Entire State Indian Council of Agricultural
Research,
Research Complex for North-
Eastern Hill Region, Mizoram Center,
Kelasib, Mizoram.
2
9.
Nagaland Entire State Indian Council of Agricultural
Research,
Research Complex for North-
Eastern Hill Region, Nagaland Center,

11. Jharnapani, Nagaland.
3
0.
Orissa Entire State Head, Division of Plant Pathology,
Orissa University of Agriculture and
Technology, Bhubaneswar.
3
1.
Pondicherry Entire Union
Territory
Head, Division of Plant Pathology,
Tamil Nadu Agricultural University,
Coimbatore.
3
2.
Punjab Entire State Head, Division of Plant Pathology,
Punjab Agricultural University,
Ludhiana.
3
3.
Rajasthan Entire
State
Head Division of Plant Pathology,
Rajasthan Agricultural University,
Bikaner.
.
3
4.
Sikkim Entire State Head, Indian Council of Agricultural
Research, Research Complex for North-
Eastern Hill Region, Sikkim Center,
Tadong, Gangtok, Sikkim.
3
5.
Tamil Nadu Entire State Head, Division of Plant Pathology,
Tamil Nadu Agricultural University,
Coimbatore, Tamil Nadu.
3
6.
Tripura Entire State Officer-in-charge, Indian Council of
Agricultural Research, Research Complex,

12. Agartala, Tripura.
3
7.
Uttar Pradesh Lucknow,
Jhansi, Agra and
Allahabad Division
Head Division of Plant Pathology,
Chandrasekhar Azad University of
Agriculture and Technology, Kanpur.
3
8.
Uttar Pradesh Kumaon,
Garhwal,
Rohilkhand,
Meerut Division.
Head Division of Plant Pathology,
G.B. Pant University of
Agriculture and Technology, Pantnagar.
3
9
Uttar Pradesh Faizabad,
Gorakhpur and
Varanasi Division
Head Division of Plant Pathology,
Narender Dev University of
Agriculture and Technology, Faizabad.
4
0.
West Bengal Entire State Head, Division of Plant Pathology,
Bidhan Chandra Krishi Vishva
Vidyalaya, Kalyani, Mohanpur, Nadia
(West Bengal).
4
1
Karnataka Entire State Head, Division of Plant Pathology,
IIHR, Hessarghata, Bangalore, Karnataka.

13. Import and Export Licensing Procedures in India
Posted on August 12, 2013 by India Briefing
Editor’s Note: Please find an updated July 2014 version of this article linked here.
India’s importand export system is governed by the Foreign Trade (Development& Regulation) Act of 1992 and
India’s Export Import(EXIM) Policy. Imports and exports of all goods are free, except for the items regulated by the
EXIM policy or any other law currently in force. Registration with regional licensing authorityis a prerequisite for the
importand export of goods.The customs will notallow for clearance ofgoods unless the importer has obtained an
ImportExport Code (IEC) from the regional authority.
Import Policy
The Indian Trade Classification (ITC)-Harmonized System (HS) classifies goods into three categories:
1. Restricted
2. Canalized
3. Prohibited
Goods not specified in the above mentioned categories can be freely imported withoutany restriction,if the importer
has obtained a valid IEC. There is no need to obtain any importlicense or permission to importsuch goods.Mostof
the goods can be freely imported in India.
Restricted Goods
Restricted goods can be imported onlyafter obtaining an importlicense from the relevantregional licensing authority.
The goods covered by the license shall be disposed ofin the manner specified bythe license authority,which should
be clearly indicated in the license itself.The listof restricted goods is provided in ITC (HS). An importlicense is valid
for 24 months for capital goods,and 18 months for all other goods.
Canalized Goods
Canalized goods are items which mayonly be imported using specific procedures or methods oftransport.The listof
canalized goods can be found in the ITC (HS). Goods in this category can be imported onlythrough canalizing
agencies.The main canalized items are currentlypetroleum products,bulk agricultural products,such as grains and
vegetable oils,and some pharmaceutical products.
Prohibited Goods
These are the goods listed in ITC (HS) which are strictly prohibited on all importchannels in India.These include wil d
animals,tallow fat and oils of animal origin,animal rennet,and unprocessed ivory.
Export Policy
Justlike imports,goods can be exported freely if they are not mentioned in the classification ofITC (HS). Below
follows the classification ofgoods for export:
 Restricted
 Prohibited
 State Trading Enterprise

14. Restricted Goods
Before exporting any restricted goods,the exporter mustfirstobtain a license explicitlypermitting the exporter to do
so.The restricted goods mustbe exported through a set of procedures/conditions,which are detailed in the license.
Prohibited Goods
These are the items which cannotbe exported at all. The vast majorityof these include wild animals,and animal
articles that may carry a risk of infection.
State Trading Enterprise (STE)
Certain items can be exported only through designated STEs.The export of such items is subjectto the conditions
specified in the EXIM policy.
Types of Duties
There are many types of duties that are levied in India on imports and exports.A listof these duties follows below:
Basic Duty
Basic duty is the typical tax rate that is applied to goods.The rates of custom duties are specified in the Firstand
Second Schedules ofthe Customs TariffAct of 1975. The FirstSchedule contains rates ofimportduty, and the
second schedule contains rates ofexport duties.Most of the items in India are exemptfrom custom duty, which is
generallylevied on imports.
The first schedule contains two rates:Standard rate and preferential rate. The preferential rate is lower than the
standard rate.When goods are imported from a place specified by the central government(CG) for lower rates,the
preferential rate is applicable.In any other case,the standard rate will be applicable.Ifthe CG has signed a trade
agreementwith the country of origin, then the CG may opt to charge a lower basic duty than indicated in the first
schedule.
Additional Customs Duty (Countervailing Duty)
In addition to the basic duty on imported goods,a countervailing duty is also applicable to imported goods.The rate
of duty is equal to the rate of excise applied to goods manufactured in India.If the article is not manufactured in India,
then goods ofa similar nature are used to determine the correct duty amount.If there are different rates of duty on
similar goods,then the highestrates of the known products will be applied to the article in question.
Additional Duty (VAT)
The CG may levy an additional duty equivalentto sales tax or VAT charged on sale/purchase in India.The rate
cannotexceed 4 percent. However, the additional duty shall be refunded when the imported goods are sold ifthe
following conditions are satisfied:
1. The importer pays all the custom duties;
2. The sale invoice shall bear the indication thatthe credit of such duty shall notbe allowed;and
3. Importer shall pay VAT/sales tax on the sale of these goods.
Anti-Dumping Duty
The CG may impose an anti-dumping dutyif an article is imported to India at less than its normal price,and will notify
the importer if they decide to do so.The amountof duty cannotexceed the margin ofdumping.The margin of
dumping means the difference between the export price and the normal price.
The notification issued byCG in this regard shall be valid for five years. The period can be further extended.
However, the total period cannotexceed 10 years from the date of first imposition.
Countervailing Duty on Subsidized Articles
A countervailing duty is a tariff applied to imported goods to neutralize the effect of a subsidyfrom the country of

15. origin.If any country grants subsidies on anyarticle to be imported to India,whether directly from the same country or
otherwise,then the CG may impose a countervailing duty equal to or less than the subsidyitself.However, the duty
will not be imposed if the the article is subsidized for the following reasons:
1. Research activities conducted by person engaged in manufacturing or export
2. Assistance to disadvantaged regions in destination country
3. Assistance in adaptation ofexisting facilities to new environmentrequirements.
The notification issued byCG in this regard shall be valid for five years and possiblysubjectto further extension.
However, the total period cannotexceed 10 years from the initial date of imposition.
Safeguard Duty
A safeguard duty is a tariff designed to provide protection to domestic goods,favoring them over imported items.If
the governmentdetermines thatincreased imports ofcertain items are having a significantlydetrimental effecton
domestic competitors,itmay opt to levy this duty on those imports to discourage their proliferation.However,the duty
does notapply to articles imported from developing countries.The CG may exemptimports ofany article from this
duty. The notification issued byCG in this regard is valid for four years, subjectto further extension. However, the
total period cannotexceed 10 years from the date of first imposition.
Protective Duties
In addition to safeguard duties,the CG also bolsters domestic industries using protective duties.Should the Tari ff
Commission issue a recommendation for a protective duty, the CG may impose on anygoods imported to India a
protective duty to provide protection to domestic industry.
The duty cannotexceed the amountproposed in the recommendation.The CG may specify the period up to which
protective duty shall be in force, reduce or extend the period,and adjustthe effective rate.
Education and Higher Education Cess
The education cess,simplyput,is a tax designed to fund education and healthcare initatives.An education cess at
the rate of 2 percent and higher education cess of1 percentare levied on the aggregate of duties of customs.
However, the aggregate of customs duties does notinclude the safeguard duties,countervailing dutyon subsidized
articles,anti-dumping duty, or countervailing duty equivalentto VAT.
Valuation
Customs dutyis payable as a percentage of ‘Value’ which is known as ‘Assessable Value’ or ‘Customs Value.’ The
Value may be either:
 ‘Value’ as defined in Section 14 (1) of the Customs Act; or
 ‘Tariff Value’ described under Section 14 (2) of the Customs Act.
Tariff Value – the Tariff Value is fixed by the Central Board of Excise & Customs (CBEC) for any class ofimported
goods or export goods.Authorities will consider the trend of value of the goods in question while fixing tariff value.
Once fixed, the duty is payable as a percentage ofthis value.
The value of imported goods for the assessmentofduty is determined in accordance with the provisions ofSection
14 of 1962 and the Customs Valuation (Determination ofValue of Imported Goods) Rules,2007.According to the
rules,the assessable value equal the transaction value of goods as adjusted for freightand costof insurance,
loading,unloading and handling charges.
In the assessable value,the following criteria are included:

16.  Commission and brokerage;
 Costof container,which are treated as being one with the goods for customs purposes;
 Costof packing – labour or materials;
 Materials,components,tools,etc.supplied bybuyer;
 Royalties and license fees;
 Value of proceeds ofsubsequentsales;
 Other payment as condition of sale ofgoods being valued;
 Costof transportup to place of importation;
 Landing charges;and
 Costof insurance
The following costs are excluded from the assessable value:
 Charges for construction,erection,assembly,maintenance or technical assistance undertaken after importation
of plant, machineryor equipment;
 Costof transportafter importation;
 Duties and taxes in India; and
 Types of duties on exports and imports in India are covered in the Customs TariffAct 1975.The Act provides all
the laws and regulations related to customs in India.
Portions of this article was taken from the latest issue of the India Briefing Magazine,titled ‘Trading with
India.’ In this issue we focus on the dynamics driving India as a global trading hub.Within the magazine,you will find
tips for buying and selling in India from overseas,as well as how to set up a trading company in the country. This
issue is available as a complimentary download in the Asia Briefing Bookstore until the end of September.
Dezan Shira & Associates is a specialistforeign directinvestmentpractice,providing corporate establishment,
business advisory,tax advisory and compliance,accounting,payroll,due diligence and financial reviewservices to
multinationals investing in emerging Asia.Since its establishmentin 1992,the firm has grown into one of Asia’s most
versatile full-service consultancies with operational offices across China,Hong Kong, India,Singapore and Vietnam
as well as liaison offices in Italy and the United States.
For further details or to contact the firm, please email india@dezshira.com, visit www.dezshira.com,or download
the company brochure.
You can stay up to date with the latest business and investmenttrends across India by subscribing to Asia Briefing’s
complimentary update service featuring news, commentary,guides,and multimedia resources.
Related Reading
India’s Taxes for Foreign-invested Entities
In this issue, we provide an overview of India’s taxes on business,which includes a section on India’s double taxation
avoidance agreements,and then discuss individual income tax rates and deductions.Finally,we discuss India’s tax
reforms in 2013,including an article by Chandrahas Choudhury,NewDelhi correspondentfor Bloomberg View,“Can
India Tax Itselfto Prosperity?”

17. Establishing a Business in India
In this magazine,we discuss establishmentstructures in India,including liaison offices,projectoffices, branch offices,
and wholly owned subsidiaries.We overview each structure in terms of the situations in which it is appropriate,its
permissible activities and limitations,as well as its setup and winding up processes,complete with flow chart
- See more at: http://www.india-briefing.com/news/import-export-licensing-procedures-india-
6804.html/#sthash.eWV71izJ.dpuf