Spice Board Registration for Exporters in India

The Spice Board Registration, officially known as the Certificate of Registration as an Exporter of Spices (CRES), is a mandatory license issued by the Spices Board of India. The Board itself acts as the official Export Promotion Council for the 52 scheduled spices. India, recognized as the world's foremost spice exporter, is celebrated for its premium quality and diverse range of spices.

This Spice Board certificate ensures compliance with export regulations, quality benchmarks, and global market demands. To apply for Spice Board Registration, exporters must possess a valid Import Export Code (IEC) acquired through the Directorate General of Foreign Trade (DGFT) portal. Securing this registration streamlines trade, builds international confidence, and enables your business to expand its global reach.

What is the Spices Board Act, 1986?

The Spices Board Act, 1986, is a law made by the Indian government to promote the development and export of spices in India. It led to the formation of the Spices Board of India, which works under the Ministry of Commerce and Industry. This Board looks after the production, quality control, and export promotion of spices like cardamom, pepper, turmeric, and more. The Act helps farmers, traders, and exporters by giving them support, guidelines, and facilities to grow and sell better-quality spices in India and abroad.

This registration offers tangible benefits that help businesses thrive in the competitive global market:

• International Credibility: Securing Spice Board Registration significantly enhances your company's credibility, building trust among buyers and suppliers globally.
• Opportunities for Business Growth: The Spice Board certificate allows you to connect with potential business partners, customers, and policymakers across the globe, helping to build relationships that will benefit your long-term goals.
• Market Intelligence and Data Accessibility: This is crucial for international importers and exporters, who can register to gain valuable market information, including current trends, consumer preferences, and contact details.
• Streamlined Export Process: The CRES certificate acts as the mandatory Registration Cum Membership Certificate (RCMC) for spice exporters. This simplifies compliance, as you do not need to seek a separate RCMC from another authority.
• Brand Enhancement and Visibility: Membership with the Spice Board provides opportunities to participate in international trade exhibitions, product showcases, and promotional activities.
• Quality Assurance and Adherence: The Spice Board Registration also guarantees that all spices conform to international quality standards, thereby reassuring foreign customers of the superior quality of Indian spices.

The Spices Board of India is responsible for the overall development and export promotion of 52 spices listed in the Schedule of the Spices Board Act, 1986.

Functions of the Spices Board of India

The Spices Board of India has several key functions:

• Highlighting North-Eastern Spices: Introducing the diverse range of spices found in the North-East region.
• Cardamom Market Development: Overseeing the regulation, research, and development of domestic marketing for both small and large cardamom varieties.
• Quality Assessment Services: Providing an overview of the methods for quality evaluation services.
• Spice Promotion and Certification: Engaging in the promotion, processing, and certification of various spices.
• Post-Harvest Spice Enhancement: Focusing on improving spices after they have been harvested.
• Export Promotion: Issuing CRES (RCMC), facilitating trade fairs, market research, and brand building for Indian spices globally, including those from the North-East.
• Quality & Food Safety: Setting and enforcing quality standards, monitoring residues, operating certification schemes, and promoting quality assessment services.
• Research & Development: Conducting R&D for improved spice varieties, cultivation techniques, pest management, and post-harvest enhancement.
• Market Development: Overseeing market development for cardamom and other spices, both domestically and internationally.
• Data & Statistics: Collecting and disseminating vital data related to spice production, trade, and prices.

To be eligible for Spices Board registration, applicants must meet the following criteria:

1. Business Type: The applicant must be either a manufacturer-exporter or a merchant-exporter of spices.
2. Spice Type: The business must be involved in the export of any of the 52 spices specified by the Spices Board.
3. Legal Entity: The business must be a legally registered entity in India. This includes:

• • Sole Proprietorship
  • Partnership Firm
  • Limited Liability Partnership (LLP)
  • Private Limited Company
  • Public Limited Company

4. Indian Business Entity: The applicant must be an India-based business entity.
5. No Criminal Record: There should be no criminal record against the partners or directors of the business entity. This ensures the integrity and credibility of the exporter.
6. Valid ID Proofs: All identification proofs submitted for the partners/directors and the business must be legitimate and verifiable.
7. Import Export Code (IEC): A valid Import Export Code issued by the Directorate General of Foreign Trade (DGFT) is mandatory. This is the primary requirement for any export/import activity in India.
8. GST Registration: The business must have a valid GST registration certificate.
9. FSSAI License: As spices are considered food products, a Central FSSAI license is generally required for businesses involved in the export of spices. This ensures compliance with food safety regulations and standards, which is crucial for international trade. For exporters, a Central License is typically needed if the annual turnover exceeds ₹20 crores or if they are primarily engaged in export activities.
10. Minimum Turnover (Optional but Recommended): While not explicitly stated as a strict, universal mandatory requirement on the official Spices Board website, some reliable sources and industry practices suggest a minimum turnover of ₹2.5 lakh from selling spices in the previous financial year. This indicates a certain level of established business activity.
11. Place of Business and Storage: The applicant must have a fixed and proper place of business with adequate storage facilities for spices. This is important for maintaining the quality and integrity of the spices before export and for potential inspections by the Spices Board.
12. Financial Soundness: A confidential bank certificate or bank report in the prescribed format from your banker, confirming your financial status and the net worth of the company, is a crucial requirement.

The process for acquiring a Certificate of Registration as Export of Spice (CRES) comprises the following stages:

Step 1: Online Registration

Visit the official Spices Board of India website and create an account using your phone number, email address, and Import Export Code. After successfully entering these details, you will receive a One-Time Password (OTP) for verification.

Step 2: Fill Out the Application Form

Following successful verification, you will be directed to the application form (Form-1). It is crucial to accurately complete all sections about your company and export activities, as any inaccuracies could cause delays in processing your application. Upon successful completion, a unique application reference number will be provided to you.

Step 3: Upload Necessary Documents

Input your unique reference number to proceed with uploading all mandatory documents in PDF format. This includes essential papers such as your IEC certificate, GST registration, PAN card, and any other relevant supporting documents as required for the application.

Step 4: Remit the Registration Fee

Upon successful submission of all required information and uploaded documents, proceed to pay the prescribed fees for the Spice Board Certificate to finalize your registration process.

Step 5: Application Verification

Once the payment is successfully made, your application will be forwarded to the regional office for comprehensive processing. Should any inconsistencies or issues be identified, the office will inform you to make the necessary corrections or to resubmit particular documents.

Step 6: Obtain Your Certificate

Following successful verification, your Certificate of Registration as an Exporter of Spices (CRES) will be officially issued. You will receive a notification via email or SMS, prompting you to log into the portal using your credentials to download the certificate.

Key Takeaways:

• The Spices Board oversees and advances the international trade of Indian spices.
• Registration with the Board is compulsory for all businesses involved in spice exports, whether they are manufacturers or merchants.
• Securing a CRES (Certificate of Registration as Exporter of Spices) is essential for legal operation and to leverage diverse advantages in the spice export sector.
• The entire registration procedure can be efficiently completed online via the Spices Board's designated portal.
• To prevent any processing holdups, it is vital to ensure all submitted documents are thoroughly completed and precise.

To apply for Spices Board Registration, the following documents are mandatory:

1. Application Form (Form-1): This is the primary form you need to fill out to officially apply for Spice Board Registration. It will contain all the essential information about your business.
2. Import-Export Code (IEC) Certificate: The IEC is a mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT) that allows you to engage in import and export activities in India. It's crucial for any business involved in international trade, including spices.
3. PAN Card: A copy of the business entity's PAN card. For proprietorships, the proprietor's PAN is required.
4. GST Registration Certificate: This certificate proves that your business is registered under the GST regime in India. If your business turnover exceeds certain thresholds, GST registration is mandatory.
5. Bank Certificate: This typically refers to a certificate from your bank confirming the existence of your business bank account. It helps verify your financial standing and business operations.
6. FSSAI License: The FSSAI license is mandatory for any business dealing with food products, including spices. It ensures that your products meet the prescribed food safety standards.
7. Industrial Registration Certificate: This certificate is likely required to demonstrate that your business is registered with the relevant industrial authorities, indicating your manufacturing or processing unit's legal standing.
8. Partnership Deed or Memorandum of Association (MoA):

• • Partnership Deed: If your business is a partnership firm, this legal document outlines the terms and conditions of the partnership between the partners.
  • Memorandum of Association (MoA): If your business is a company, the MoA is a fundamental document that defines the company's constitution and scope of activities.

9. Passport-Size Photograph: This is a standard requirement for identification purposes, typically of the applicant or a key person associated with the business.
10. Proof of Business Premise Address: Documents such as utility bills, lease agreements, or property sale deeds serve as evidence of the business location.
11. Proof of Identity/Address for Proprietor/Partners/Directors: Valid identification and address proofs like Aadhaar Card, Voter ID, or Passport for key individuals.
12. Cancelled Cheque: A cancelled cheque for verification of the business's bank account details.
13. Declaration/Undertaking: Formal statements or affidavits confirming adherence to Spices Board rules and regulations.
14. List of Spices for Export: A detailed list specifying the types of spices intended for export.
15. Factory License/Manufacturing Unit Registration: Applicable for manufacturing exporters, this document confirms the legal registration of the production facility.
16. Good Manufacturing Practices (GMP) Certificate / HACCP Certificate: Quality assurance certifications, often required or advantageous, especially for specific products or target export markets.

The official fee for the Spice Board Certificate, applicable to both manufacturers and merchants (excluding GST), is detailed below:

Note: The professional fee for Spice Board Registration stands at Rs. 10,000 for Manufacturers and Rs. 5,000 for Merchants.

The Certificate of Registration as Exporter of Spices (CRES), issued by the Spices Board of India, typically holds validity for a period of 3 years from its date of issuance. Maintaining active registration requires timely renewal to ensure continuous legal compliance for export operations.

1. Renewal Process

To ensure uninterrupted spice export activities, the renewal of Spices Board Registration is crucial. The general process involves:

• Timely Application: Submitting a renewal application, usually through the Spices Board's online portal, well in advance of the current certificate's expiry date.
• Fee Payment: Remitting the prescribed renewal fee, which may differ from the initial registration cost, along with applicable taxes.
• Updated Documentation: Providing any updated business documents (e.g., changes in address, directorship, or GST details) or a declaration confirming no changes since the last registration/renewal.
• Board Verification: The Spices Board conducts a review and verification of the submitted application and supporting documents.
• Issuance of Renewed CRES: Upon successful verification and approval, a renewed CRES is issued, extending the validity period.

2. Cancellation of Registration

Spices Board Registration can be cancelled under specific circumstances, either voluntarily by the exporter or mandatorily by the Board:

Voluntary Cancellation: An exporter may request cancellation if they decide to cease their spice export operations.

Mandatory Cancellation by the Board: The Board can cancel registration due to:

• Non-compliance: Persistent failure to adhere to the provisions of the Spices Board Act, 1986, or related rules.
• Violation of Conditions: Breach of any terms or conditions stipulated in the Certificate of Registration.
• Fraud/Misrepresentation: If the registration was obtained through deceit or by providing false information.
• Inactivity: Consistent failure to engage in export activities for a prolonged period without valid justification.
• Legal/Financial Issues: If the registered entity faces insolvency, liquidation, or is involved in severe trade-related offenses.
  Before mandatory cancellation, the Board usually issues a show-cause notice, allowing the exporter to present their defense.

3. Suspension of Registration

Suspension of Spices Board Registration implies a temporary cessation of export privileges and typically occurs when:

• Investigation Pending: The Board suspends registration during an ongoing investigation into alleged non-compliance, misconduct, or quality issues.
• Minor Violations: For minor breaches of rules that require immediate corrective action but do not warrant permanent cancellation.
• Failure to Respond: Non-responsiveness to official communications, queries, or notices from the Spices Board within stipulated timelines.
  During the suspension period, the exporter is prohibited from conducting any spice export activities. The suspension is usually lifted once the issues are resolved to the Board's satisfaction.

As per Section 11 of the Spices Board Act, 1986, exporting spices without a valid Spice Board Registration is a punishable offense. Businesses operating without this mandatory registration are subject to the following repercussions:

• Seizure of Spice Inventory: The entire quantity of spices intended for export can be confiscated by the relevant authorities.
• Detention: Violators may face a prison sentence of up to one year.
• Penalties: A monetary penalty of up to Rs 1,000 can be levied.
• Inability to clear customs: Export shipments will be blocked at ports.
• Loss of business opportunities: No legitimate buyer will deal with an unregistered exporter for long.
• Reputational damage: Significant harm to the business's standing.

Navigating the Spices Board Registration process can present several hurdles for applicants.

1. Complex Documentation & Compliance: Applicants often struggle with gathering the extensive list of required documents and ensuring strict compliance with all related acts like FSSAI and GST, leading to delays or rejections. To overcome this, many businesses create a detailed checklist beforehand or work with a professional consultant to ensure all paperwork is in order.
2. Prolonged Processing Times: Even with all documents in order, the application processing can sometimes take longer than expected, impacting business timelines and export plans.  Proactively track the application status online and follow up with the Spices Board authorities regularly to resolve any queries or discrepancies promptly.
3. Ambiguity in Regulatory Requirements: Certain guidelines or criteria might lack clarity, leading to confusion for applicants regarding specific requirements or eligibility interpretations.
4. Technical Glitches with Online Portal: Issues with the online application portal, such as system downtimes, upload errors, or payment gateway failures, can hinder the smooth submission of applications.
5. Correct Classification of Business Entity: Determining whether a business falls under the 'manufacturer' or 'merchant' category can be confusing, as it affects the applicable fees and specific compliance needs.