This article is general information only. It is not legal advice, it does not create an advocate-client relationship, and it is not an advertisement or solicitation.
Key takeaways
- A spice exporter needs an Import Export Code from DGFT and a registration with the Spices Board, which the Board's own FAQ calls mandatory in addition to the IEC.
- Spices Board Circular 24/2022-23 (23 March 2023) sets mandatory sampling and testing by destination, including ethylene oxide (ETO) certification for the EU and Northern Ireland.
- The "MFN rate" is only the baseline duty at the destination. Lower rates under a trade agreement depend on proof of origin.
- The India-EU trade agreement was announced as concluded in January 2026, but the EU's own summary says its sanitary and plant health rules stay unchanged.
Contents
Why Kerala exporters face a compliance-first market
Pepper, cardamom, ginger and turmeric from Idukki, Wayanad and the Malabar belt move through Kochi, where the Spices Board is headquartered. The commercial risk in this trade is rarely the price. It is a consignment held at a foreign port because a test report, certificate or label did not match what the importing country requires.
Registrations before the first shipment
Two registrations come first. The Import Export Code is issued by the Directorate General of Foreign Trade. The Spices Board registration, called the Certificate of Registration as Exporter of Spices (CRES), is issued under Section 11 of the Spices Board Act 1986. The Board's FAQ describes it as mandatory in addition to the IEC and notes that it is treated as the registration-cum-membership certificate for spice exporters. That FAQ is an older document, so confirm the current validity period and fees on the Board's exporter registration portal before applying.
If the exporting business is a company or LLP, incorporate it first, because the IEC and CRES are issued to the legal entity. See our notes on the One Person Company route.
What MFN actually means for your price
Under World Trade Organization rules, a member generally has to give all other members the same tariff treatment it gives its most favoured trading partner. In practice, the "MFN rate" is the standard import duty a country charges on a product from members it has no special deal with. Preferential trade agreements are the exception: they can bring lower duty, but only if the goods meet the agreement's origin rules and the exporter holds the required proof.
One thing follows for an exporter: quote your buyer on the basis of the duty actually applicable to your product code at the destination, not on a headline free trade announcement.
On the European Union, the agreement was announced as concluded in January 2026. The European Commission's IP Helpdesk summary says the Union's strict sanitary and plant health rules remain unchanged, with no exceptions. The sources we reviewed describe further legal and approval steps before entry into force, so exporters should not price contracts on an assumption that preferential duty is already available.
Testing and certificates by destination
Spices Board Circular 24/2022-23, dated 23 March 2023 and effective from 27 March 2023, lists mandatory sampling and testing of export consignments under the Board's Quality Evaluation System. It says it remains in force until further instructions are issued, so always check the Board's website for later circulars. It sets tests destination by destination and covers parameters such as aflatoxin, Sudan dyes, Salmonella and pesticide residues.
For ethylene oxide, the circular requires a Spices Board Health Certificate or Official Certificate, based on a cleared analytical report, for listed spice products entering the EU and Northern Ireland. The same circular states the EU limit for spice mix products at 0.1 mg/kg, replacing an earlier lower figure. Limits for individual spices differ, so read the annexure for your product rather than relying on a general number.
| Destination group | Check first |
|---|---|
| EU and Northern Ireland | ETO certificate for listed spices, aflatoxin certificate for chilli, pesticide residue limits |
| UK | Annexure tests for the UK, including certificate requirements for chilli and nutmeg |
| USA, Canada, Japan, Australia | Destination-specific parameters in the circular's annexure, plus the importer's own specification |
| All other countries | The "all other countries" row of the annexure, and any stricter limit in the sale contract |
Contract terms that avoid rejection disputes
Most export disputes start with a vague specification. A sale contract should name the product grade, the test parameters and the laboratory, the sampling method, the point at which risk passes (the Incoterm chosen), and what happens if a consignment fails at destination. Decide in advance who bears re-testing, return and destruction costs.
Keep export proceeds in mind as well. Realisation of export proceeds through an authorised dealer bank must follow the Foreign Exchange Management rules and RBI directions in force, so the payment terms in the contract should be workable within them. If a buyer later disputes quality, the dispute resolution clause matters. Our guide to pre-institution mediation in commercial suits explains the first step that applies to commercial claims filed in Indian courts.
Questions we often hear
Is Spices Board registration needed if I already have an IEC?
According to the Board's FAQ, yes. The registration is required in addition to the IEC for exporting spices and spice products.
Does the India-EU agreement remove EU testing requirements?
The EU summary states that its sanitary and plant health rules remain unchanged. Testing and certificate requirements therefore continue to matter.
Where should I check for the latest circulars?
On the Spices Board website and the DGFT notifications page, since circulars can be amended after the date of a published article.
Questions on a specific matter depend on the facts, and advice should be taken before acting. Related reading: trademark opposition in India, which is relevant when a spice brand is to be protected before it is sold abroad.