Start Alcohol Export Business: Concept and Licenses Required

Start Alcohol Export Business
Shivani Jain
| Updated: Feb 02, 2021 | Category: IEC

The Indian Alcohol industry is one of the most promising sectors for the Indian GDP (Gross Domestic Product). It not supplies liquor within India, but export the same to the majority of countries in the world. Further, based on several analysis and reports, it is clear that the Indian Alcohol Industry had made an export of 446. 24 USD million in the year 2018. As a result, nowadays, every embryonic entrepreneur who wishes to acquire global recognition start alcohol export business.

In this blog, we will discuss the concept and licenses required to start alcohol export business in India.

Reasons to Start Alcohol Export Business

The key reasons to start alcohol export business in India are as follows:

  • Continuous Increasing Demand;
  • Offers at relatively Lower Cost than other countries;
  • Promising Industry in the Market;
  • One of the leading Wine producing countries;

Growth of Alcohol Export Business in India

The growth of Alcohol Export Business in recent years can be summarised:

  • As per a report named “Export value of Alcoholic beverages from India F.Y. 2015 to 2020”, published by STATISTA, on 16.10.2020, India has exported alcoholic beverages of around 230 USD million;
  • Based on another report named “Export value of Wine from India in 2018 by Region”, published by STATISTA, on 21.01.2021, India has exported alcoholic wine of around 2 USD million to the Netherlands in the year 2018;

Major Importers of Alcohol from India

 As per a report released by the AgriXchange, APEDA, the latest top importers of Indian Alcohol in the year 2019 are as follows:

Sr No. Country Total Export Quantity Total Export Value
1 U Arab Emirates 45, 992.13 52, 554. 21
2 Singapore 13, 736. 22 20, 966. 97
3 Netherland 1, 760. 83 11, 227. 10
4 Ghana 7, 448. 41 7, 406. 30
5 Nepal 5, 758. 91 5, 193. 04
6 Congo D. Republic 6, 581. 02 4, 851. 46
7 Nigeria 4,846. 26 4,850. 63
8 Angola 8, 732. 45 4, 785. 62
9 Haiti 3, 409. 53 4, 531. 70
10 Malaysia 3, 173. 42 4, 050. 43
11 U S A 2, 446. 16 3, 645. 14
12 Vietnam Soc Republic 266. 23 2, 989. 29
13 Oman 2, 378. 53 2, 946. 04
14 Togo 2, 292. 72 2, 284. 32
15 Kenya 1, 488. 64 1, 984. 66
16 Bahrain Is 2, 028. 35 1, 839. 25
17 Congo P Republic 2, 335. 65 1, 819. 54
18 Hong Kong 401. 23 1, 698. 48
19 Sri Lanka Dsr 330. 11 1, 676. 43
20 Lebanon 2, 973. 85 1, 645. 72
21 Jordan 2, 920. 00 1, 572. 92
22 Malawi 2, 541. 00 1, 553. 60
23 Cote D Ivo ire 1, 231. 35 1, 277. 32
24 France 263. 19 1, 137. 77
25 Thailand 595. 86 1, 077. 45
26 Qatar 775. 64 992. 82
27 Tanzania Rep 1, 029. 12 973. 16
28 Rwanda 684. 15 877. 78
29 Japan 753. 33 824. 81
30 South Africa 702. 28 797. 33

Factors To Consider To Start Alcohol Export Business In India

The factors to consider to start alcohol business in India are as follows:

factors to consider to start alcohol business
  • Register a Firm or Company;
  • Acquire the Licenses Required to Start Alcohol Export Business in India;
  • Select a Target Country;
  • Engage with Local Suppliers;
  • Find Prospective Buyers;
  • Deeply Analysis the Market Competition;
  • Decide the Ratio of Profit Margin;
  • Study the Laws and Payment Method of the concerned Target Country;
  • Decide the Mode of Transportation;

Documents Required To Start Alcohol Export Business in India

The documents required to start alcohol export business in India are as follows:

  • Certificate of Registration;
  • A copy of PAN Card;
  • ID Proof of the proposed partners and directors, in the form of Voter ID/ Election ID, Driving License, Aadhar Card, etc.;
  • Sale Deed if the place being used as the Registered Office of the company is self owned;
  • A copy of Memorandum of Association;
  • A copy of Articles of Association;
  • In the case of Limited Liability Partnership, a copy of the drafted LLP Agreement;
  • In the case of Partnership Firm, a copy of the drafted Partnership Deed;
  • Import Export Code (IEC);
  • Certificate of GST Registration;

Licenses Required To Start Alcohol Export Business in India

The licenses required to start alcohol export business in India are as follows:

licenses required to start alcohol export business

Company Registration

To start Alcohol Export Business in India, the applicant needs to first register an LLP/Company/ or Partnership Firm in India. Further, for to obtain Private Limited Company Registration, the applicant needs to comply with the provisions of the Companies Act 2013.

In contrast, to obtain LLP Registration or Partnership Firm Registration, he/ she needs to file an application under the LLP Act 2008 or the Indian Partnership Act 1932, respectively.

GST Registration

To start an import export business, one needs to obtain GST Registration under the provisions of the GST Act, to commence with the business activities.

IEC Registration

One of the most crucial license to start Alcohol Export Business in India is the IEC Registration. Every business that wants to start an import export business of any sort needs to first acquire Import Export Code from DGFT (Director General of Foreign Trade) on mandatory basis.

Liquor License

Another significant license to start Alcohol Export Business in India is the Liquor License. To obtain this license, the applicant needs to file an application, together with the required documents.

Trade License

To obtain a Trade License, the applicant requires to file the application with the Municipal Corporation of the respective state.

Trademark Registration

In order to protect the brand name and logo of the company at a global level, the applicant needs to obtain Trademark Registration on a mandatory basis from the IPR authorities.

ESI Registration

The term ESI stands for Employee State Insurance. It is an insurance scheme for the workers operating in a Manufacturing Unit. That means if an applicant is engaged in manufacturing alcohol or wine as well, then, in that case, he/ she requires to obtain ESI Registration as well.

EPF Registration

Any company that is employing more than 20 people need to obtain EPF Registration as well on a mandatory basis to commence with the business activities.

APEDA Registration

Every individual who wants to start alcohol export business in India must obtain APEDA Registration from the government. The same acts as an approval from the government that the concerned product is of standard quality is safe for human consumption.

Details to be Mentioned on Container

The details to be specified on the container or cask are as follows:

  • Name and Mark of the Brewery of the respective state;
  • Bottle Capacity;
  • Composition of the Ingredients used;
  • Batch Number;
  • Date of Manufacturing;
  • Price;

Process To Start Alcohol Export Business in India

The steps involved in the process to start alcohol export business in India are as follows:

File an Application to Commissioner

In the first step, the applicant requires to file an application with the Commissioner. The said application must consist of the details as follows:

  • Name of the Consignor;
  • Name of the Consignee;
  • Description, Potency, Type, and Quantity of the Alcohol exported;
  • Export Route;
  • Exit Check Post from the Country;

Further, the applicant needs to furnish the additional details as follows to the Commissioner:

  • A permit from the Excise Authority of the respective country to which the liquor is to be exported;
  • A duly executed bond providing the details of the duty paid;
  • A copy or receipt of challan concerning the duty paid for the export of alcohol in the government treasury;

Export Permit

 If in case the authorities are satisfied with the application and documents filed, the commissioner will issue permission to export, including details, such as name, quantity, and potency of each type of alcohol.

Further, the applicant needs to forward a copy of such permit to the excise authorities of the country in which alcohol is to be exported.

Furnish Import Permit

In the next step, the applicant needs to furnish a copy of the import permit, obtained from the excise authorities of the importing country, before the Assistant Excise Commissioner. Such a permit will certify the scheduled arrival of the consignment.

Discharge of Bond

If in case, alcohol is exported based on a special bond, then, in that case, the commissioner needs to discharge a bond, if he is satisfied that none of the conditions are violated. However, in case of failure, the same will result in the levy of hefty penalties.

Conclusion

In a nutshell, the Indian Alcohol Industry is flourishing and expanding just like any other sector. As a result, the same is actively contributing in the country’s GDP.

However, it shall be significant to take into consideration that starting an alcohol export business in India is not an easy task, and the same involves a lot of intricate and complex requirements.

At Swarit Advisors, our proficient experts are there to cater to all your doubts and queries and to provide you with an easiest and hassle free way to start alcohol export business in India.

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Shivani Jain

Shivani has completed her B com LLB (Hons) and has the experience of writing various research papers during her college time. Earlier she was working as an Associate in a Delhi based Law Firm, but her interest in writing made her pursue Legal Content Writing as a career. Her core area of interest is in writing about various legal enactments, tax, and finance.

 

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