Indian agri products can enter some markets at a lower duty under a free trade agreement or under a one-way preference scheme run by the importing country. Whether any preference applies depends on your country, the HS code of the product and the rules of origin in force when the goods arrive.
Many raw spices already face low or zero duty in major markets, so a preference may save little. For some processed foods, oils and nuts it can matter more.
The main types
- Free trade agreements: two-way deals that India has signed with countries or regions. Each lists which goods get reduced duty and how fast.
- Unilateral schemes: preference systems run by importing countries for developing countries, such as the EU's Generalised Scheme of Preferences (GSP) and the UK's Developing Countries Trading Scheme.
- Regional arrangements in Asia that India is part of, covering some neighbouring markets.
Known points and changes
Preferences change, and some have been withdrawn. The United States removed India from its GSP programme in 2019, so that route is not open for US buyers. The EU's GSP excludes some product groups for countries whose exports in that group are large, and India has been affected by this. The UK scheme has its own product lists.
India has also signed a trade agreement with the UK and has been negotiating one with the EU. An agreement applies only once it is in force. Read how the India-UK and India-EU agreements affect duty on spices and check the status with your customs authority.
How to claim a preference
Preference claims are made by the importer at customs, usually through a broker, so the decision is yours. The supplier's job is to give you correct origin proof. Ask your broker for the exact wording and format needed, send it to the supplier with your purchase order and check the draft before shipment.
- Find the right HS code for your product, as explained in how to find the right HS code.
- Look up the standard and preferential rates in your country's tariff.
- Read the rules of origin for that scheme and product.
- Check what proof of origin is needed, such as a certificate or an origin statement by a registered exporter. The EU GSP uses the REX registered exporter system.
- Write the origin document into your contract so the supplier provides it with the shipping documents.
Risks to watch
General import duties are covered in what import duties apply to Indian spices.
- Claiming a preference that does not apply can lead to back duty and penalties, sometimes years later.
- Blends and processed goods may fail origin rules if they contain imported ingredients.
- Late or wrong origin documents can mean paying full duty at clearance.
How we help
We do not give customs rulings, but we make sure the supplier can issue the origin proof your broker asks for, with the right wording and matching documents. Start with a free sourcing review.