Export documentation for beer leaving India

Three authorities, three sets of papers

Every beer export touches three systems. Central government handles the export itself through the Directorate General of Foreign Trade (DGFT) and customs. Your state excise department controls beer leaving your licensed premises. The importing country decides what it needs to let the beer in.

Rules change and differ between states, so treat this guide as a map rather than a checklist. Confirm current requirements with a customs broker, your licensing consultant and your importer before the first shipment.

Getting set up to export

Before your first shipment, the business needs an Importer Exporter Code (IEC), issued online by the DGFT. Your bank account must be linked to customs by registering its authorised dealer (AD) code at the port or airport you will ship from. A customs broker usually handles this and files documents on the customs electronic system, ICEGATE, for you.

Check whether your food licence needs to cover export. Beer is a food product under the Food Safety and Standards Authority of India (FSSAI) rules. Exporters may need a licence category that allows it. Beer meant for human consumption sits outside GST, so the GST export routines you may have heard about for other goods do not apply in the same way. Ask your accountant how export sales should be recorded.

State excise: letting the beer leave

State excise treats export differently from local sale. Expect to apply for an export permit or pass for each consignment. Many states require a bond or guarantee and proof that the beer actually left India, such as the export entry and bill of lading, before the matter is closed. Whether local duty or an export fee applies depends on the state.

Allow time. An export permit can take longer than you think. The container booking will not wait. Start the excise application as soon as the importer confirms the order. Our guide to the microbrewery licence in India explains how state licensing is organised.

The shipping documents

For each shipment you will normally prepare:

• Commercial invoice with the buyer, Incoterm, currency, quantities and value.
• Packing list showing every carton or keg, with weights and pallet details.
• Shipping bill, the customs export declaration, filed electronically by your broker.
• Bill of lading for sea freight or air waybill for air, issued by the carrier.
• Certificate of origin where the importer needs it, often to claim lower duty under a trade agreement.
• Insurance certificate if you sell on terms that make you responsible for insurance.

Make sure every document shows the same quantities, descriptions and values. Small mismatches between the invoice and the packing list are a common reason for delays at the port.

What the importing country may ask for

The importer usually handles its own licences and duties, but it will ask you for documents. These can include a lab analysis showing alcohol content, a list of ingredients and allergens, label artwork for approval and sometimes a certificate confirming the beer is fit for human consumption. Ask for the full list in writing before you brew the export batch.

Labels often need changes for the export market. See our guide to labelling beer for export markets so the export batch is not packed in cans the importer cannot use.

Incoterms decide who handles what

Incoterms are standard trade terms that decide where your responsibility ends. Under ex works (EXW) the buyer collects from your brewery and handles almost everything. Under free on board (FOB) you deliver the goods onto the ship at the Indian port and clear Indian export formalities. Under cost, insurance and freight (CIF) you also pay sea freight and insurance to the destination port.

For a first export, FOB is a common choice. You control the Indian side you understand and the importer controls the side it knows. Seeing how paperwork, Incoterms and pricing fit together is the gap most first-time exporters feel on their first shipment.

Keep a file for every shipment

Keep a single folder, paper or digital, for each consignment. It should hold the purchase order, invoice, packing list, shipping bill, bill of lading, excise permit, proof of export and the bank record of payment received. Customs, excise and your bank can all ask for these months later. Export proceeds also have to be received through your bank within the time allowed by foreign exchange rules, so keep the payment record with the shipment it belongs to.

After the first shipment, write down every step, who did it and how long it took. The second shipment is far easier with that list in hand.

Your first step

Check whether your business already has an IEC. If not, apply on the DGFT portal this week. Then ask your licensing consultant for your state's export permit process in writing, including how long it usually takes.

Common questions

What is an IEC and does a brewery need one to export?

An Importer Exporter Code is a business identification number issued by the DGFT. You generally need one to export goods from India, including beer.

Does state excise duty apply to exported beer?

It depends on the state. Many states have a separate export process with permits and bonds. Check the current rules with your licensing consultant.

Who files the shipping bill?

Usually a licensed customs broker files it for you on the customs ICEGATE system, using your invoice and packing list.

Which Incoterm should a first-time beer exporter use?

FOB is a common starting point. You handle the Indian side up to loading on the ship and the importer handles freight and import from there.