Tabboco Products Export From India

India is the second largest tobacco producer behind China. The country has around 0.45 million hectares of area under tobacco cultivation. About 10% of the total area under tobacco cultivation is in India. 

Apply For Tobacco Board Of India




    Tobacco Board Of India Government of India Ministry of Commerce & Industry

    The Tobacco Board was formed in 1976 and is headquartered in Andhra Pradesh. The board is a facilitator to the tobacco growers, traders and exporters. The functions of the board are the promotion of all categories of tobacco and allied products, overseeing the production and distribution of the products for domestic as well as exports and regulating the Flue-cured Virginia (FCV) tobacco. Some of the other roles of the Tobacco board are advising the central government, propagating information, sponsoring and encouraging scientific and technological research related to tobacco promotion.

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    GOVERNMENT INITIATIVES

    Duty Draw Back Scheme

    The goal of the scheme is to cut the duty and tax chargeable on imported products that will be used to manufacture exported goods from India. Under this scheme, the unmanufactured tobacco, cigars, cheroots, cigarettes, manufactured tobacco, products containing tobacco, reconstituted tobacco, nicotine, tobacco substitutes, etc. will receive a 0.15% drawback rate.

    Interest Equalization Scheme (IES)

    The scheme originally came into effect in 2015 and has received an extension till 2024. The interest equalization will be provided pre and post shipment Rupee export credit. As per the extension, the rates for IES will be 3% for MSMEs, 2% for manufacturers and merchant exporters of 410 tariff specified lines.

    Tobacco Growers Welfare Scheme

    The scheme is aimed at welfare of the FCV tobacco growers and their dependent families. A Tobacco Board’s Growers’ Welfare Fund has been approved by the Ministry of Commerce and Industry of India under this scheme. The total corpus approved is Rs. 25 crore (US$ 3.14 million).

    Tobacco Board & its activites
    • Constant monitoring of the Virginia tobacco market, both in India and abroad and ensuring fair and remunerative price to the growers and reducing wide fluctuations in the prices of the commodity.
    • Sustaining and improving the existing international markets and developing new markets overseas for Indian Virginia Tobacco and its products and devising marketing strategies in consonance with demand for the commodity including group marketing under limited brand names.
    • Establishing auction platforms for sale of Virginia tobacco by registered growers and functioning as an auctioneer at auction platforms either established by it or registered with it.
    • Recommending to the Central Government the minimum prices to be fixed for exportable Virginia tobacco with a view to avoiding unhealthy competition amongst the exporters. (Under its Exim policy, the Government decided to abolish fixation of M.E.P. with effect from 1-4-1993).
    • Regulating other aspects of Virginia tobacco marketing in India and export of Virginia tobacco having due regard to the interests of growers, manufacturers, dealers and the nation.
    •  Propagating information useful to the growers, dealers and exporters (including packers) of Virginia tobacco and manufacturers of tobacco products and others concerned.
    • Purchasing Virginia tobacco from growers when the same is considered necessary or expedient for protecting the interests of the growers and disposing it in India or abroad as and when considered appropriate.
    • Promoting tobacco grading at the level of growers.
    • Sponsoring, assisting, co-coordinating or encouraging scientific, technological and economic research for promotion of tobacco industry.
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    MAJOR MARKETS

    India is the only country which produces tobacco in two seasons. It exports to more than 115 countries throughout the world. The country exports tobacco mainly to Belgium, the Philippines, Egypt, Arab Rep., Germany, Nepal, USA, Turkey, Nepal and many more countries worldwide. Out of these countries, Belgium is the biggest importer of tobacco at around 17% of the total exports from India. Egypt, Arab Rep. and the Philippines are one of the largest tobacco export destinations for India importing around 13% and 12% of the total. The country also exports to Indonesia, France, UAE, Russia, Korea, Sri Lanka, Malaysia, Venezuela, Ethiopia and Nigeria.

    During 2021-22, India exported US$ 164.8 million worth of tobacco to Belgium. This was an increase of 7% from 2020-21. UAE is among the top importers of tobacco from India, with 2021-22 imports valued at US$ 134.6 million. The value of exports to Singapore and US during the same period was US$ 34.3 million and US$ 31.7 million, respectively. Some of India’s other tobacco export destinations, i.e. Netherlands and Germany, imported US$ 25.7 million and US$ 15.2 million worth of tobacco from India during 2021-22, respectively.

    Tobacco Board Of India Registration

    There are two types of registration for the export of tobacco. Also, RCMC for Tobacco export is mandatory for the tobacco business.

    1. Tobacco Product Exporter (for example Tobacco Essence and extracts) 
    2. Exporter of Tobacco (Unmanufactured Tobacco) 

    To become an Exporter of Tobacco (Unmanufactured Tobacco), you must submit the documents listed below.

    • Recent Bank certificates against the banker’s current account for the applicants in the format required by the regulations.
    • Letter of Undertaking in the Prescribed Proforma, on Company Letterhead.
    • If the business is a partnership, private limited company, or public limited company – a copy of the memorandum of articles of association and the full addresses of the partners and directors.
    • GST certificate copy.
    • PAN Card Copy
    • A copy of the IEC certificate (Importer Exporter Code)
    • The information on godowns, warehouses, and handling points (including branches) in the relevant column of the application. The information must be provided in the manner described below by those requesting registration or renewal. 
    1. Location (Complete address and phone number)
    2. Measurements of each warehouse.
    3. Renting or Ownership proof
    • When applying for a lease, the owner’s complete address and a self-attested copy of the lease agreement on a ₹100 non-judicial stamp paper must be included.
    RCMC for Tobacco Export
    1. Those who wish to apply for RCMC for Tobacco export should be listed as exporters in the appropriate category by the Tobacco Board. For application, the following paperwork is required:

      • If you desire to apply as a “Manufacturer Exporter,” self-certified copies of documentation proving your status as an exporter are required.
      • Prior RCMC certificate that was self-certified (in the event of renewal or amendment).

      A merchant exporter or manufacturer exporter registration is given. If the exporter wants to register as a manufacturer exporter, he must provide documentation of the company’s manufacturing operations along with the application.

      Beginning on April 1 of the licensing year in which the license was issued, registration is granted for five years. If an exporter’s ownership, organisational structure, name, or address changes, the RCMC holder must notify the Registering Authority of the change within one month of the effective date of the change. The necessary paperwork for registering for a tobacco license is.

      • Bank Certificate 
      • Letter of Undertaking 
      • If the company is a partnership, private limited company, or public limited company, a copy of the memorandum of articles of association and the complete addresses of the partners and directors
      • PAN Card copy
      • Udhyami Registration under Factory Act 1948 or Registration under Shop and establishment act 
      • Copy of Central Excise registration Certificate for the manufacture of Excisable goods
      • Copy of the Latest Municipal/Corporation tax paid receipt about Factory or unit premises
      • Copy of GST Certificate 
      • Permission letter copy issued by RBI/Concerned Authorities of Govt. of India