export of spices to uk - ib final (1)

EXPORT OF INDIAN SPICES

TO UNITED KINGDOM

GROUP MEMBERS:ROHIT BHOPALE 09-704ARUN C. 09-710ROHIT KOLEKAR 09-734NEHUL MAKWANA 09-73

VIRAJ SALUNKE 09-752

Objective To Understand nuances involved in Export

of Spices Understand the Export Regulation of India

pertaining to Spices Understand the Import Regulation of UK

with regards to Spices Marketing Potential of Indian Spices in UK

Scope & Limitation The prevailing market growth will remain

the same The Existing Rules & Regulations are only

considered both in India & UK Only the Exporting of Spices is considered

and not the Manufacturing.

1. Rohit Bhopale – India’s Spicy Profile.2. Viraj Salunke – UK’s Scenario.3. Rohit Kolekar – Export of Spices from

India.4. Arun C. – Import of Spices into UK.5. Nehul Makwana – Marketing of Spices in

UK.

Flow of Presentation

India’s Spicy Profile India – The Home of Spices.

Exports to 140 Countries

India’s Global Position.

Spice Board of India.(Ministry of Commerce, Govt. of India)

5.02 Lakh Tonnes - Growth of 7%. Rs. 5,560 Crores – Growth of 5%.

Export Share: Value Added Products – 34% Chilly – 23% Cumin – 10% Turmeric – 7% Pepper – 6%

India’s Spices Exports (2009 - 10)

*Source – Spices Board Of India.

Major Importers of Indian Spices1. USA – 16%

2. Malaysia – 8%

3. China – 7%

4. UAE – 6%

5. Uk – 5%

India – Spice Export Basket Whole Spices Organic Spices Spice Mixes Spice Blends Freeze Dried Curry Powders / Mixtures Oleoresins Essential Oils Dehydrated Spices

Spices – Curry Powder

Spices – Essential OilsPepper oil Mustard seed oil Turmeric oil Clove oil Garlic oil Cinnamon oil Mace oil Ginger oil Kokam oil Cumin seed oil Basil oil Nutmeg oil Spearmint oil Rose mary oil Cardamom oil Peppermint oil Coriander seed oil Parsley oil Fennel seed oil Ajwan seed oil

United Kingdom

Why UK?Spices market size in UKUK an interesting market for developing countries.Annual growth rate.Intresting fact.Over 1000 Indian hotels in London itself.

Demographics• Population• Age Structure• Ethnicity• Religion• Languages

Population

Part Population  %

England 50,762,900 83.8

Scotland 5,116,900 8.4

Wales 2,965,900 4.9

Northern Ireland 1,741,600 2.9

The population of the UK in the 2007 was 60million ( 60,587,300).

In 2010 current estimates put the population at closer to 63million

Age Male Female %

0–14 5,560,489 5,293,871 15.3

15–64 20,193,876 19,736,516 65.1

65+ 4,027,721 5,458,235 19.6

Age Structure

Age Structure

Ethnic group Population  %British 50,366,497 85.67%Other european 3,096,169 5.27%Indian 1,053,411 1.8%Pakistani 977,285 1.6%Irish 691,232 1.2%Mixed race 677,117 1.2%Caribbean 565,876 1.0%African 485,277 0.8%Bangladeshi 283,063 0.5%Chinese 247,403 0.4%Other 230,615 0.4%

Ethnicity

ReligionReligion Number  %

Christian 42,079,000 71.6%

Muslim 1,591,000 2.7%

Hindu 559,000 1.0%

Sikh 336,000 0.6%

Jewish 267,000 0.5%

Buddhist 152,000 0.3%

Other religion 179,000 23.1%

Religion

Languages•English•Scots•Ulster Scots•Welsh•Scottish Gaelic•Scotland Cornish•Irish•Polish

UK places with large Indian population

Region Population of region

Indian population

Percentage of total population

London 7,556,900 501,600 6.6%West Midlands 5,381,800 199,900 3.7%East Midlands 4,399,600 147,200 3.3%

South East 8,308,700 140,800 1.7%North West 6,864,300 99,900 1.5%

East 5,661,000 88,200 1.6%Yorkshire and the

Humber 5,177,200 76,400 1.5%

South West 5,178,000 42,400 0.8%North East 2,549,700 17,900 0.7%Scotland 5,094,800 17,000 0.3%

Wales 2,903,085 8,200 0.3%Northern Ireland 1,685,267 1,600 0.1%

Importance of LeicesterLeicester is set to soon become the UK's first ethnic minority-majority city and Indians make up by far the largest ethnic group.

Leicester has one of the highest percentages of Indians per head of the population of any local authority in the UK.

Leicester accounts for (25.0%) 73,100 of London’s Indian population of 501,600 (6.6% of the city's population)

EXPORT OF SPICES FROM INDIA

Logistics

Spices Procured from Farmers

Spices Processed Export

Packaging

Containerization

Ship loadShipped to retailers via distributors

Wooden boxes

Plywood boxes with aluminum lining

Paper packaging

Cartons

Spices Packaging for Export

Export via Sea Route

Loaded at Nhava Sheva International Port - MumbaiCochin Port – Kerela

and transported to

Grimsby and Immingham Port – UKLondon Port – UK

*Grimsby and Immingham is the biggest and busiest port in UK

London Port, UKLondon Port, UK

Nhava Sheva, Nhava Sheva, MumbaiMumbai

Suez Suez CanalCanal

Cochin Port, KerelaCochin Port, Kerela

Sea Route from India to UK

Statistics: Sea route Nautical miles : 3890 nautical miles Time taken to reach UK : 15-20 days appox Port clearance : 1 day The rates are $500 for a 20 feet container and

$900 for a 40 feet container

Registration & Licensing Mandatory quality check

Chilli/chilli products or other food products containing chilli products

Turmeric Powder IE Code certificate Registration fee of Rs. 2000/- Confidential Bank certificate Self certified/attested copies of Sales Tax

Registration (CST/VST/VAT) certificate.

Documents Required Commercial invoice Bill of landing or airway bill Packing list Insurance documents Special certificates of origin Sanitation Ownership Import declaration in UK

What the goods are? Commodity Code

Spices Board of India Spices Board Act 1986 Exports and imports are regulated by

the Foreign Trade (Development and Regulation) Act, 1992 Export and Import (EXIM) Policy

Constituted on 26th February 1986

Spices Board - Main Functions Research & production development of vanilla Post harvest improvement of all spices Promotion of organic production, processing and

certification of spices Export promotion Quality certification Quality control Registration of exporters Collection & documentation of trade information Provision of inputs to the Central Government on

policy matters relating to import & export of spices

Spices Board’s Initiatives for Export Development Award of Spice House Certificate for good

manufacturing practices Award of Logo for quality of the product Accreditation under ISO 9000 for

international acceptance

EXPORT OF SPICES INTO UK

UK Import Procedure

HM Revenue & Customs Correct 'class' or commodity code 091091- Spices Form C88 Single Administrative Document

(SAD) The HM Revenue & Customs Integrated

Tariff of the United Kingdom

Seasonal ticket’ valuation statement Custom Freight Simplified Procedure Warehouse Free Zones Inland Clearance Depot (ICD) Enhanced Remote Transit Sheds( ERTS) Interport Removals Transit and Shipments

UK Import Procedure Contd…

Marketing Strategy•Packaging Development including design and bar coding.•Business promotional trips.•Participation in international food fairs.•Forwarding business samples abroad.•Printing of promotional brochures.•Directory of Importers and Exporters.

Marketing Strategy•Foreign Trade Enquiry Bulletin.•Spice Market (a weekly publication in English providing market information)•Tie up with Indian Restaurants•Small Retail Outlets•Expand in EU

Marketing StrategyLaunching the book titled “ Secret Recipes” this will book features 100 Indian and international recipes made with our Spices.

References http://www.indianspices.com www.indianspices.com/html/

spices_board_advocacy_pfa.htm http://customs.hmrc.gov.uk http://www.thehindubusinessline.com/

2010/06/21/stories/2010062151651400.htm

THANK YOU!