Shellac Export From India

The Indian government has made several provisions for the forest products distributors to help them export their products on a global platform. Since the products are becoming popular among various countries, it is beneficial for the distributors to start shipping these products in the international market. Shellac and Forest Products Export Promotion Council also known as SHEFEXIL, is a quasi-government body providing provisions which help the exporters gain exposure. It was previously known as SEPC and renamed to Shellac & Forest Products Export Promotion Council (SHEFEXIL) which now supports 860 individual products with close to USD 2140.94 million of exports in 2018-19.

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    Shellac Export Promotion Council

    1957 SEPC (Shellac Export Promotion Council) was formed under sponsorship of Ministry of Commerce & Industry, Govt. of India to facilitate India’s exports of shellac and lac based products

    April 2005 SEPC’s role was enhanced as the Nodal EPC for India’s Non Timber Forest Produce, to facilitate exports of Veg Saps & Extracts, Guar Gum, Sesame seeds, Herbs, Niger. Seeds, Other Vegetable materials, Fixed Vegetable Oil, Cakes and more. Subsequently, SEPC was renamed as SHEFEXIL (Shellac & Forest Products Export Promotion Council) and now supports 860 individual products with 2140.94 US$ Million of exports in 2018-19.

    October 2007 SHEFEXIL was declared as the nodal EPC for the North Eastern Region of India, to facilitate all exports from the states of Assam, Arunachal Pradesh, Manipur, Nagaland, Meghalaya, Tripura, Mizoram & Sikkim

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    Growth and Decline of Indian coffee industry

    In the interim, the coffee industry in India has experienced great fluctuations in fortunes. Initially the spread of commercial Arabica plantations was rapid in the hills of present day Karnataka, Kerala and Tamil Nadu states, till 1860’s. Within next few years, major out breaks of pests and diseases like white stem borer, green bug and leaf rust posed a serious threat to the flourishing coffee industry. The continuous ravages of white stem borer and leaf rust spelled doom for Arabica plantations whose area started declining alarmingly. This necessitated introduction of tolerant robusta from Indo-China region towards the 1900’s and initiation of research efforts to search for remedial measures.

    Procedures for the export of Shellac and forest products
    • Products that can be exported without a license but are subject to the policy given in the handbook:
      • Shellac
      • All forms of Lac (except Pesswa, any lac containing living insects)
    • Sticklac and Broad Lac
    • An exporter needs to approach the separately with specific documents to the Council to obtain necessary certificates and lastly to the Customs Authority for ultimate clearance to ship the cargo/products.
      • Each exporter has to follow the new system – Standardized Pre-shipment Export Documentation System. This system includes:
        • Commercial Invoice
        • Packing list
        • Bill of landing/combined transport document
        • Certificate of Inspection/In-process Control
        • Insurance certificate of policy
        • Certificate of origin
        • Bill of exchange
        • Shipment advice
        • Proforma/Invoice
        • Intimation for inspection
        • Shipping instructions
        • Insurance declaration
        • Shipping Order
        • Mate receipt
        • Application for certificate of origin
        • Letters to the bank for collection/negotiation of documents
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    Strategic initiatives of SHEFEXIL

    1st strategy

    Achieving the desired market share in target nations of the U.S.A., Germany, UK, Japan, China, Canada, Hong Kong, and Egypt, presently accounting for a market share of 60%.

    2nd strategy

    • Establishing ways to boost productivity
    • Improving the quality of products
    • Improving the Consistency of products
    • Aiming to bring India to a competitive edge in exports
    • Current target products for exports – Non-Timber Forest Produces (NTFPs) and their variants: Guar Gum and Sesame Seeds which are currently accounted for 80% of export

    3rd strategy – Targeting “value additions” through product development and research.

    4th strategy – Developing an Indian brand for sustainable market impact.

    5th strategy – Evolving a comprehensive growth model to partner with the rural poor.

    Benefits of being a SHEFEXIL member

    SHEFEXIL provides several benefits to its members. The council for Forest Products Export Promotion helps not only helps the exporters to grow in the business but also regulates the extraction of forest products. It also keeps the excessive custom duties in check. Some of the benefits provided by SHEFEXIL are discussed in detail below:

    International Exposure

    With the support of SHEFEXIL, it is easier for exporters to gain international exposure and increase their export business. SHEFEXIL offers several opportunities to its members to expand their business and achieve profits from forest products exports.

    Research

    SHEFEXIL, as a government body, support several research studies which make it beneficial for the members to find out about several specifications of the forest products and be updated about the same. Regular research helps the members to keep a check on the products that they are exporting. Research can also help the merchants to improve their packaging and delivery styles with knowledge about the products.

    Publications

    SHEFEXIL has several publications where research studies and recent news is printed. These publications keep the exporters up-to-date about the export market and the innovations happening in the business. This helps them improve the quality of services they are providing and widening the range of products they offer

     

    Membership & RegistrationProcess

    1. Step 1: Download the membership form

      To apply for the council membership, one need to visit the SHEFEXIL’s official website. The membership form is available on the official website. Download the form and fill up the details required for the council membership.

      Step 2: RCMC Form and Part I

      The exporter needs to fill the RCMC Form and Part I along with the membership form. It is essential to attach this form along with the membership form, mentioned in Step 1.

      Step 3: Copy of the License

      Along with the membership form and the RCMC Form and Part I, the exporter also needs to attach a copy of the IEC Number. The concerned licensing authority issues this number. It is important to note that the copy of the license submitted needs to be self-certified by the exporter to avoid unauthorized registration for membership.

      Step 4: Membership Fees

      After ensuring that the applicant have all the documents in the steps mentioned above, he/she must check the membership fees that needs to be paid with the form. The membership fees are applicable based on the applicant’s annual turnover.