Guide to Exporting Food Products from India to USA

Exporting food products from India to the USA offers great opportunities for Indian exporters. This guide of “how to export food products from India to USA” provides a detailed overview of the procedures and regulations involved in the export process. With its large and diverse consumer base, the US market holds substantial potential for Indian food products. 

A study suggests that “The Indian food market is projected to grow by approximately 7.67% from 2024 to 2029, potentially reaching a market volume of around $1.296 trillion by 2029″.

Understanding the export procedures, including compliance with US Food and Drug Administration (FDA) regulations and tariffs, is crucial for successful market entry. Additionally, recognizing the US market trends and consumer preferences can help Indian food exporters tailor their products and marketing strategies effectively.

By looking at these factors efficiently, Indian exporters can leverage the expanding demand for ethnic foods in the US and establish a strong presence in this competitive market.

Essential Requirements for Exporting to the USA

Exporting food products from India to the USA is a lucrative opportunity but comes with stringent regulations. To ensure smooth exports, Indian exporters must meet several requirements set by both Indian and U.S. authorities. Two critical elements are obtaining an Import Export Code (IEC) and completing the US FDA registration for facilities handling food products.

1. Import Export Code (IEC)

The Import Export Code (IEC) is a mandatory business identification number for individuals and companies looking to export goods from India. This unique code, issued by the Directorate General of Foreign Trade (DGFT), is required for any type of cross-border trade, including food products.

Here’s why the IEC is essential:

• Legal Requirement: No business can export food products without this code. The IEC is referenced during customs clearance, shipping, and foreign exchange transactions.
• Documentation: The IEC is required for filing export documentation like shipping bills and invoices, ensuring that all trade is tracked and compliant with legal standards.
• Single Registration: Once issued, the IEC is valid for a lifetime, eliminating the need for renewals, which simplifies long-term business planning.

2. US FDA Registration for Facilities Handling Food Products

Registration with the U.S. Food and Drug Administration (US FDA) is crucial for Indian exporters to sell food products in the U.S. The FDA mandates that all facilities involved in the manufacturing, processing, packaging, or holding food for consumption in the U.S. must register with them.

Key reasons to obtain US FDA registration:

• Safety and Compliance: The US FDA ensures that food products entering the U.S. are safe and meet specific quality standards. Registration confirms that Indian exporters adhere to stringent safety protocols, including Good Manufacturing Practices (GMP).
• Prevention of Delays: Without this registration, it can delay or reject food shipments or detain them at U.S. ports, resulting in significant financial losses.
• Regular Updates: The FDA requires registered facilities to renew their registration every two years and keep them updated regarding any changes in ownership or operational practices.

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Step-by-Step IEC Application Process

Obtaining the Import Export Code (IEC) is the first step for businesses in India that wish to engage in international trade, including the export of food products. The process is straightforward and can be completed online through the Directorate General of Foreign Trade (DGFT) portal. Here’s a detailed step-by-step guide to help you navigate the process.

Step 1: Accessing the DGFT Online Portal and Initiating the Application

To apply for an IEC, you must begin by accessing the DGFT portal:

• Visit the DGFT Website: Go to the official DGFT website at https://www.dgft.gov.in.
• Create a User Account: If you are a new user, you must register and create a login ID using your PAN (Permanent Account Number) and other essential details like your email and mobile number. Existing users can log in using their credentials.
• Access the IEC Application Form: After logging in, navigate to the ”Services’‘ section and select ”IEC Profile Management.’‘ From there, click on ”Apply for IEC’‘ to initiate the application process.

Step 2: Filling Up, Verifying, and Submitting the IEC Application Form

Once you’ve accessed the application form, the next step is to fill it in with accurate details:

• Personal Information: Enter your name, PAN, and other personal identification details.
• Business Information: Please provide the name, address, business type (proprietorship, partnership, etc.), and contact information of your business.
• Bank Details: Provide your current bank account details, including bank name, branch, and IFSC code. This is essential for future transactions related to your export activities.
• Verification: Once you have filled in all the required fields, carefully review the entire form to ensure all details are accurate and correct. The DGFT system allows you to save and review the form before final submission.

Step 3: Providing Business Details and Payment of Application Fee

After verifying the information, you need to complete the payment process for the IEC application:

• Fee Payment: The application fee for obtaining an IEC is currently INR 500. You can pay this fee through the DGFT portal using online payment options such as net banking, debit/credit cards, or other approved methods.
• Business PAN: Ensure that the PAN details you provide are for the business entity applying for the IEC, as the IEC will be linked to this PAN.

Step 4: Uploading Required Documents

After filling out the form and paying, you must upload certain documents to support your application. The required documents include:

• PAN Card: A copy of the applicant’s PAN card (either individual or business entity).
• Address Proof: Valid proof of address, such as an Aadhar card, passport, voter ID, or utility bill, for the business location.
• Bank Certificate/Cancelled Cheque: A bank certificate or a canceled cheque with the business’ pre-printed name.
• Digital Signature Certificate (DSC) (Optional): Though not mandatory, businesses can use a DSC to sign their application digitally.

All documents must be in PDF format, and each file must not exceed the size limit set by the DGFT portal (usually 5MB per document). Ensure that the documents are legible and clear to avoid processing delays.

Step 5: Receiving the IEC After Verification

After you submit your application and documents, the DGFT will begin processing your IEC application. The steps are as follows:

• Verification by DGFT: DGFT officials verify the submitted form, fee payment, and uploaded documents. If they find any discrepancies, you must correct them and resubmit the application.
• Issuance of IEC: Once the documents are successfully verified, the DGFT will issue the IEC, and you will be notified through email and SMS.
• Downloading the IEC Certificate: DGFT issues the IEC certificate in digital format, which you can download by logging into your account on the DGFT portal.

The entire process, from applying to receiving the IEC, typically takes 1-5 business days, depending on the document’s accuracy.

Ensuring all details are accurate and documents are in order makes the process efficient, allowing businesses to focus on their export strategies without unnecessary delays.

Obtaining US FDA Registration for Food Exports

For Indian businesses looking to export food products to the USA, registering with the U.S. Food and Drug Administration (US FDA) is mandatory. The US FDA registration ensures compliance with U.S. food safety standards and allows food products to enter the U.S. market legally. Below is a detailed step-by-step guide for obtaining US FDA registration.

Appointing a US FDA-Registered Agent

Before submitting a registration application, Indian exporters must appoint a U.S.-based agent registered with the US FDA.

• Role of the U.S. Agent: The U.S. agent acts as a liaison between the US FDA and the foreign facility. This agent is responsible for:
  • Handling all communications with the US FDA regarding inspections, compliance issues, and product recalls.
  • Responding to inquiries about the company’s operations.

• Choosing a Registered Agent: The agent must be physically located in the U.S and able to effectively communicate with both the US FDA and the Indian company. Many professional service providers offer registered agent services specifically for foreign businesses seeking US FDA registration.

Submitting the US FDA Registration Application Form

Once a U.S. agent is appointed, the next step is to complete and submit the US FDA registration application.

• Online Registration: The registration process is completed online through the FDA Industry Systems (FIS) portal. Companies must create an account or log in to an existing account on this platform.

• Required Information: The registration form requires details such as:
  • Facility name and address.
  • Contact information of the U.S. agent.
  • Types of food products manufactured, processed, packed, or stored.
  • Owner or operator details.

• Food Facility Registration: Each facility involved in producing, processing, packaging, or storing food products for the U.S. market must be registered separately. It includes manufacturing plants, warehouses, or distribution centers handling food products.

• The registration also requires compliance with the Food Safety Modernization Act (FSMA) regulations, which emphasize hazard analysis and preventive controls for safe food production.

Receiving a US FDA Registration Number

The facility is assigned a registration number once the US FDA registration application is successfully submitted.

• Registration Number: The registration number is a unique identifier for the facility and confirms that the business is authorized to export food products to the U.S. market.
• Immediate Validity: The facility can export food products to the U.S. upon receiving this number, provided all other compliance regulations are met.
• Biennial Renewal: US FDA registration must be renewed every two years between October 1 and December 31 of even-numbered years. Failure to renew may result in the cancellation of registration and suspension of export privileges.

Obtaining the US FDA Registration Certificate

Although the US FDA does not automatically issue a physical certificate after registration, businesses can obtain a registration certificate through a third-party service provider if required for documentation or marketing purposes.

• Third-Party Certificate: While the US FDA only provides a registration number, third-party companies can generate an FDA Registration Certificate based on the registration number issued by the FDA. This certificate may be helpful for specific buyers, importers, or international trade purposes.
• Use of Certificate: Though the certificate is not legally required for trade, it can be valuable for demonstrating compliance to partners or customers, especially for business negotiations or while working with other regulatory bodies.

Renewal of US FDA Registration for Food Facilities

The U.S. The Food and Drug Administration (US FDA) requires food facilities that export products to the U.S. to renew their registration periodically. This is mandated under the Food Safety Modernization Act (FSMA) to ensure ongoing compliance with U.S. food safety standards. Below is an overview of the renewal process and the consequences of failing to renew the registration.

Renewal Timeline and Requirements Under FSMA

Under the Food Safety Modernization Act (FSMA), the facility of food registrations must be renewed every two years. This biennial renewal is crucial for maintaining the validity of a facility’s registration with the US FDA.

Timeline for Renewal:

• Biennial Renewal Period: The renewal period occurs every two years between October 1 and December 31 of even-numbered years. For example, registrations must be renewed in 2024, 2026, 2028, etc.

• Required Action: During this period, all food facilities, both domestic and foreign, must log in to the FDA Industry Systems (FIS) portal and update their registration information, even if there are no changes to report.

• Updated Information: Facilities must ensure that all the details provided during the initial registration or the last renewal are accurate. This includes:

• Facility name and address.
• Contact information for the U.S. agent (for foreign facilities).
• Types of food products handled.
• Any changes in ownership or operational procedures.

FSMA Requirements:

• Compliance with FSMA: The FSMA aims to shift the focus from addressing contamination to preventing it. Facilities must ensure that they comply with FSMA regulations, which include:

• Implementing preventive controls to identify and minimize hazards.
• Developing food safety plans.
• Regular monitoring and documentation to ensure food safety.

• Verification: Facilities must update their registration to reflect any changes to processes, facility structure, or ownership. The U.S. agent information for foreign companies should be current and valid for proper communication with the US FDA.

Consequences of Failing to Renew the Registration

Failure to renew the US FDA registration during the biennial renewal period can have serious consequences, potentially jeopardizing a business’s ability to export to the U.S.

Cancellation of Registration:

• If a facility fails to renew its registration by December 31 of the renewal year, the US FDA will consider the registration expired, rendering the facility’s US FDA registration number invalid.
• Without a valid registration, the facility is prohibited from importing, distributing, or selling food products within the U.S. market.

Detention of Shipments:

• Automatic Detention: U.S. Customs and Border Protection (CBP) and the US FDA work closely to enforce food safety regulations. If a facility’s registration has expired, food shipments from that facility will be automatically detained at U.S. ports.
• Delays and Additional Costs: Detained shipments may face lengthy delays, and the facility will incur additional costs related to storage, re-export, or destruction of the detained products.

Loss of Business Opportunities:

• Market Access: Indian exporters risk losing access to the U.S. market without proper registration, which could severely impact their business and damage their reputation. Many U.S. buyers and distributors require proof of valid US FDA registration before trading.
• Compliance Issues: In the event of non-compliance, businesses may also face additional scrutiny and penalties from the US FDA. Failure to renew on time may result in stricter inspections and regulatory actions.

Additional Documentation and Licensing Requirements

Understanding the documentation and licensing is crucial when navigating regulatory requirements for food products. Here’s a breakdown of key elements:

1. FSSAI License:

• The Food Safety and Standards Authority of India (FSSAI) requires food businesses in India to obtain a license or registration to ensure compliance with food safety and hygiene standards. This license is essential for manufacturing, processing, packaging, and distributing food products in India. It involves a thorough application process, including business premises, equipment, and personnel documentation.

2. Halal and Organic Certifications:

• Halal Certification: This certification ensures that food products meet Islamic dietary laws. It is issued by recognized Halal certification bodies and involves inspecting the manufacturing process and ingredients to ensure compliance with Halal standards.
• Organic Certification: If your food products are marketed as organic, they must meet specific standards set by organic certification bodies. This certification verifies that products are grown and processed without synthetic pesticides, fertilizers, or genetically modified organisms (GMOs). Accredited organizations typically provide certification and involve detailed farming and processing practices documentation.

3. Certificate of Origin and Health Certificate:

• Certificate of Origin: This document certifies the country where the food products are produced. It is often required for international trade and can affect tariff rates and compliance with import regulations.
• Health Certificate: This certificate is usually issued by a relevant authority in the exporting country and confirms that the food product meets health and safety standards. It is crucial to ensure that the product is safe for consumption and is often required for international shipments.

These documents and certifications ensure compliance with local and international food safety regulations, enhance market access and build consumer trust.

Logistics and Custom Clearance

The process of exporting food products from India to the USA involves complexity, necessitating meticulous planning and strict adherence to regulatory requirements. To ensure smooth operations, exporters must focus on compliance with packaging and labeling, shipping logistics, and documentation for customs clearance. Partnering with a logistics service provider like Intoglo, which offers repacking, relabeling, trans-loading, and customs bond services, can streamline the export process.

Importance of Packaging and Labeling Compliance

The United States has stringent regulations for importing food products, particularly regarding packaging and labeling. To prevent delays, fines, or product rejection, complying with the U.S. Food and Drug Administration (FDA) guidelines is essential. 

This includes:

• Correct labeling: Labels must include the product name, ingredients, nutritional information, and the country of origin. All this must be in English or accompanied by a proper translation.
• Packaging requirements: The packaging should ensure the food remains safe and uncontaminated during transit. Depending on the type of food product, it may need specific materials or refrigeration capabilities.

Non-compliance can lead to delays in customs clearance, product detention, or rejections, so ensuring that packaging and labeling meet the regulations is crucial for the success of your shipment.

Planning Shipping Logistics and Transportation

When exporting food products, selecting the right shipping methods is essential to maintain product quality and meet delivery schedules. You need to plan for:

• Full Container Load (FCL) or Less than Container Load (LCL) shipping: For exporters with large quantities, FCL shipping from India to the USA may be the best option to reduce costs and ensure faster delivery. LCL can be more cost-effective for smaller quantities but may involve longer transit times.
• Cold chain logistics: If your product is perishable, maintaining the cold chain throughout the shipping process is essential to ensure food safety. This includes choosing the right containers, such as refrigerated containers, and working with a reliable shipping partner.
• Transportation modes: Depending on the urgency and nature of the food product, you may need to choose between air, sea, or multimodal transportation. While air freight is faster, sea freight is often more economical for bulk shipments.

Ensuring All Documentation for Customs Clearance

Accurate and complete documentation is critical to facilitate the smooth entry of goods into the USA. Key documents required for customs clearance include:

• Bill of Lading (B/L): This document details the goods being shipped and serves as proof of shipment.
• Commercial Invoice: Outlines the transaction details, including the value of the goods, which is essential for customs duties calculation.
• Packing List: This provides specifics on the shipment’s contents, including the type of packaging, weight, and quantity.
• FDA Prior Notice: The FDA requires prior notice of any food shipments before they arrive in the USA to assess compliance with safety standards.
• Customs Bond: This is required to ensure that the importer will comply with the obligations imposed by customs laws and regulations.

Exporters can minimize risks and streamline their operations by ensuring compliance with regulations and selecting the right logistics partners.

By utilizing Intoglo’s expert services, such as FCL shipping from India to the USA, repacking & relabeling, transloading facilities, and Customs Bond Services, exporters can navigate the complexities of food export logistics and customs clearance with greater ease in India and the USA. Our assistance in preparing the necessary documentation and ensuring compliance with U.S. regulations can lead to smoother operations and timely deliveries.

Conclusion  

In conclusion, exporting food products from India to the USA involves navigating regulatory and logistical challenges. Every step ensures your products reach their destination safely and efficiently. Adherence to guidelines can result in delays, fines, or even rejection of goods at the border, making careful planning and execution essential.

Partnering with a reliable cross-border logistics provider like Intoglo can make all the difference. With services, Intoglo offers a comprehensive solution to simplify the export process from ida to the USA. Our expertise in ensuring compliance and managing all customs formalities helps exporters avoid costly mistakes and provide smooth, timely shipments. In addition we also offer the following benefits to the exporters:

• Direct Operations: No agents involved, avoiding delays and extra costs.
• Global Support: Teams in both India and USA time zones.
• Instant Rate Quotes: Quick and transparent full-container load rates.
• Extensive U.S. Warehouse Network: 50+ locations across the USA.
• Real-Time Tracking: Glotrack module with WhatsApp updates.
• Diverse Client Base: Serving MSMEs to large enterprises.

Contact Intoglo today for expert FCL shipping services from India to the USA to streamline your export operations and help you confidently expand into the USA market.