Introduction

Exporting food products internationally opens huge growth opportunities but only if you understand the tariffs, duties, and trade regulations involved. Many B2B exporters lose margin or face customs delays due to a lack of clarity on these costs. Here’s a simplified breakdown to help you stay ahead.

What Are Tariffs and Duties?

Tariffs are taxes imposed by the importing country on specific goods. Duties are part of these tariffs — such as customs duties, excise duties, or anti-dumping charges. They directly impact your product’s final cost in the buyer’s market.

  • Tariffs vary by product type (e.g., ghee vs. spices).

  • Each country has its own HS code-based tariff schedule.

  • WTO agreements and bilateral trade deals often influence rates.

Why Understanding These Charges Matters

If you’re exporting A2 ghee, honey, or organic spices, even 5–10% extra duty can affect your competitiveness. Knowing the exact duty structure helps in:

  • Pricing your products accurately.

  • Choosing the right export markets.

  • Negotiating better B2B deals with buyers.

Types of Duties in Food Exports

Here are key duty categories to know:

  • Basic Customs Duty (BCD): Standard charge on imported goods.

  • Additional Duty (CVD/SAD): Imposed to equalize domestic taxes.

  • Anti-Dumping Duty: On goods considered underpriced.

  • Sanitary/Phytosanitary Fees: For food safety compliance (especially for dairy, meat, and spices).

Preferential Tariffs & FTAs

India has Free Trade Agreements (FTAs) with countries like the UAE, ASEAN, Australia, and others. These often reduce or eliminate tariffs on food exports.

  • Example: UAE may offer zero-duty on Indian organic ghee.

  • Always check the certificate of origin requirements to claim tariff benefits.

Tips to Navigate Duties Smoothly

  • Use a professional freight forwarder or customs broker.

  • Get an Export Promotion Council (like APEDA) registration.

  • Ensure proper labeling, certification, and documentation to avoid rejections.

  • Keep updated with DGFT notifications or FTA updates.

Conclusion

Tariffs and duties may seem complex, but understanding them gives you a competitive edge in the export business. Whether you’re exporting cold-pressed oils, bilona ghee, or organic grains — mastering international pricing will help you scale smartly.