Lance Carson
Incense sticks are a popular product in India, used in religious ceremonies and to repel insects. India is one of the largest exporters of incense sticks in the world, with the majority of its exports going to the United States, United Kingdom, and Malaysia. In this highly competitive market, Indian incense sticks have managed to grab a dominant market share. In this article, we will discuss the steps you need to take to export incense sticks from India, including the necessary documentation, regulations, and restrictions.
How to export incense sticks from India
| Characteristics | Values |
|---|---|
| Export Documentation | Obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India. |
| Prepare necessary export documentation, including a commercial invoice, packing list, certificate of origin, and any specific documents required by the destination country. | |
| Customs Clearance | Work with a licensed customs broker to facilitate the customs clearance process. |
| Shipping | Choose reliable shipping methods and carriers. Decide between sea freight, air freight, or a combination based on cost and delivery time. |
| Insurance | Consider obtaining insurance for shipments to protect against potential loss or damage during transit. |
| Payment and Financing | Establish secure payment methods with international buyers. Explore financing options for export operations. |
| Marketing and Sales | Develop a marketing strategy to promote incense sticks in the target markets. |
| Product Characteristics | Incense sticks must be made from natural materials, such as incense wood, charcoal, or herbs, and must not contain synthetic additives or chemicals. |
| Sticks must be less than 60 centimetres long and less than 2.5 centimetres in diameter. | |
| Incense sticks must not be wrapped in plastic or other synthetic materials. | |
| Popular Destinations | The US, the UK, Malaysia, United Arab Emirates, Germany, Saudi Arabia, Canada, Australia, and New Zealand. |
| Global Reach | Exported to over 175-188 countries globally. |
| Top Exporters | India, Vietnam, and China. |
| Top Indian Exporters | Tamil Nadu and Karnataka. |
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What You'll Learn
- Incense sticks are exported to over 180 countries from India
- The US, UK, and Malaysia are the top three importers
- The major demand for incense sticks comes from South Asian nations
- India exported $20 million worth of incense sticks to the US in 2022
- To export incense sticks, you must obtain an Import-Export Code from the Directorate General of Foreign Trade in India
Incense sticks are exported to over 180 countries from India
India is one of the largest exporters of incense sticks in the world, exporting to over 180 countries. The incense sticks produced in India are of premium quality and are exported globally under the name "agarbatti", the Hindi word for "incense stick". The top five importers of incense sticks from India are Brazil, the USA, the United Kingdom, Malaysia, and Venezuela.
The agarbatti industry in India is largely a cottage-based industry, with the majority of the product being handmade. However, with government intervention and the advent of machinery, the industry has started to adopt modern manufacturing techniques. This has helped Indian incense stick manufacturers to improve product quality and sell their products at competitive prices in the local and international markets.
The abundance of raw materials and the availability of cheap labour in India have contributed to the improved production and export of incense sticks. The states of Tamil Nadu and Karnataka are the two major incense stick-producing states in India. The major demand for Indian incense sticks comes from South Asian nations. However, the consumption of incense sticks is rapidly increasing in other countries as well, leading to a growing global demand.
Exporting incense sticks from India requires obtaining an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India. Exporters also need to prepare the necessary documentation, including a commercial invoice, packing list, certificate of origin, and any specific documents required by the destination country. Working with a licensed customs broker can facilitate the customs clearance process and ensure compliance with export restrictions and import regulations. Choosing a reliable shipping method and considering insurance for shipments are also important aspects of the export process.
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The US, UK, and Malaysia are the top three importers
The US is the largest importer of incense sticks globally, with 44,977 shipments, and India is the second-largest importer, receiving 13,676 shipments. Malaysia is third, with 11,876 shipments, translating to a 10% market share. Notably, the US imported $20 million worth of incense sticks from India in 2022, constituting over 50% of its incoming supply.
India exports incense sticks to over 180 countries worldwide, with incense sticks being one of the many products exported from the country. The global incense export market is dominated by China and India, with India being the top exporter to the US. The Harmonized Tariff Schedule (HTS) classifies incense sticks as "agarbatti" (the Hindi word for incense stick) or "odorifer operated by burning".
If you are looking to export incense sticks from India to the US, UK, or Malaysia, there are several steps you need to take. Firstly, obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India, and prepare the necessary export documentation, including a commercial invoice, packing list, and certificate of origin. Work with a licensed customs broker to facilitate customs clearance and ensure compliance with export restrictions and import regulations of the destination country. Choose a reliable shipping method, considering sea freight, air freight, or a combination, and decide whether to obtain insurance for your shipments. Establish secure payment methods and explore financing options for your export operations. Finally, develop a marketing strategy to promote your incense sticks in the target markets.
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The major demand for incense sticks comes from South Asian nations
India is the second-largest producer of bamboo in the world, with an annual production of 3.23 million tonnes. This makes it a primary raw material for incense sticks, which are used in every part of the world, especially in Asia and the Middle East. In 2022, India exported $20 million worth of incense sticks to the US alone, making up over 50% of incoming supplies. The US primarily imports from India, with relatively few restrictions. However, the intended use of the incense will determine what regulations may apply when entering the country. For example, if the incense is intended for use as part of aromatherapy or as a health aid, it may be subject to FDA regulations.
India's incense stick industry is a powerful driver of the 'Make in India' mission, with most of the raw materials being sourced locally. The industry offers employment to over 400,000 people, with 80% being women. It is a low-cost industry, with deep cultural significance, especially in Hindu prayer rituals and ceremonies. Incense sticks are used as one of five offerings to deities, and the burning of the stick represents the human virtue of sacrificing oneself for society.
To export incense sticks from India, one must obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) and prepare the necessary export documentation, including a commercial invoice, packing list, certificate of origin, and any specific documents required by the destination country. Working with a licensed customs broker can facilitate the customs clearance process, and choosing reliable shipping methods and carriers is essential, with options including sea freight, air freight, or a combination of both.
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India exported $20 million worth of incense sticks to the US in 2022
India is a dominant player in the global incense export market, with the US being one of its primary importers. In 2022, India exported $20 million worth of incense sticks to the US, constituting over 50% of America's incense supply.
The US imports a variety of incense forms, including sticks, powders, coils, and cones, with incense sticks being the most common. These sticks are known as "agarbatti" in Hindi, which translates to "incense stick". The Harmonized Tariff Schedule (HTS) classification for these incense sticks is 3307.41.00, and they are subject to a dutiable rate of about 2.4%.
Exporting incense sticks from India involves several steps. Firstly, obtaining an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India is necessary. This is followed by preparing the required export documentation, including a commercial invoice, packing list, certificate of origin, and any specific documents mandated by the importing country, such as the US. Working with a licensed customs broker simplifies the customs clearance process and ensures compliance with export and import regulations.
Choosing a reliable shipping method, such as sea or air freight, is another crucial aspect. Incense stick exporters should also consider obtaining insurance to safeguard against potential loss or damage during transit. Establishing secure payment methods and exploring financing options for export operations are also recommended. Finally, developing a comprehensive marketing strategy to promote the incense sticks in the US market is essential for a successful and sustainable export business.
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To export incense sticks, you must obtain an Import-Export Code from the Directorate General of Foreign Trade in India
To export incense sticks from India, you must first establish a company and register it under the Companies Act, 2013. One of the most crucial steps in this process is obtaining an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT). The IEC is a mandatory requirement for any business looking to engage in the import or export of goods or services. Obtaining this code is a prerequisite to commencing your incense export business in India.
The Directorate General of Foreign Trade (DGFT) is the agency responsible for administering the foreign trade policies of India. It functions under the Ministry of Commerce and Industry and is responsible for regulating and promoting foreign trade. The DGFT plays a crucial role in facilitating the country's external trade by formulating and implementing policies that create a conducive environment for exporters and importers.
To obtain the IEC, you will need to submit an application to the DGFT. This application must include certain documents, such as proof of registration of your company, identity and address proof of the business owner or authorised signatory, and a bank certificate specifying the details of the business's bank account. The specific requirements may vary, so it is essential to refer to the official DGFT guidelines or consult a professional who can guide you through the process.
Once you have obtained the IEC, you can proceed with the other necessary steps for exporting incense sticks. This includes finding reliable manufacturers or suppliers of incense stick products, establishing contacts with potential international clients, and preparing the required export documentation. Working with a licensed customs broker and complying with the relevant regulations and restrictions of the destination country are also important aspects of the export process.
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Frequently asked questions
The Indian government has set the following requirements for incense stick exports: the sticks must be made from natural materials, such as incense wood, charcoal, or herbs, and must not contain any synthetic additives or chemicals. They must be less than 60 centimetres long and less than 2.5 centimetres in diameter, and must not be wrapped in plastic or other synthetic materials.
Indian export regulations state that agarbatti must not contain any artificial additives or be made of natural ingredients. India imposes high customs duty on agarbatti, so it can be challenging to sell hand-rolled incense sticks internationally. To export legally, you can find an Indian supplier who can export the product duty-free, find an international supplier to ship the product through a foreign customs broker, or set up a direct shipment from India to your country.
First, obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) in India and prepare the necessary export documentation, including a commercial invoice, packing list, certificate of origin, and any specific documents required by the destination country. Work with a licensed customs broker to facilitate the customs clearance process and comply with export restrictions and import regulations in the destination country. Choose a reliable shipping method and consider insurance for your shipments. Establish secure payment methods and explore financing options. Finally, develop a marketing strategy to promote your incense sticks in the target markets.
