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How to Export Chemicals from India: Legal Guide + Tips for Beginners

๐ŸŒ Introduction: Why Exporting Chemicals from India Is a Smart Move

India is one of the largest producers and exporters of chemicals in the world, contributing over 11% to global chemical production. With a rich supply of raw materials, skilled manpower, and growing demand from countries like USA, UAE, Bangladesh, Africa, and Europe, starting a chemical export business can be highly profitable.

Whether you’re manufacturing detergents, personal care chemicals, lubricants, industrial cleaners, or agrochemicalsโ€”exports can multiply your profit margins by 2x to 5x compared to domestic sales.

This guide will walk you through:

  • Legal requirements
  • Registration and licenses
  • Step-by-step export process
  • Popular chemical products to export
  • Smart tips to grow globally

๐Ÿ“ฆ What Chemicals Can You Export from India?

You can export many formulated, technical, or specialty chemicals, such as:

Chemical Category Examples
Household Chemicals Detergents, toilet cleaners, floor disinfectants
Cosmetic/Personal Care Shampoos, hair oils, lotions, hand sanitizers
Industrial Chemicals Lubricants, engine coolants, degreasers, solvents
Agrochemicals Pesticides, herbicides, plant growth promoters
Paints & Coatings Emulsions, thinners, primers
Specialty Chemicals Fragrance chemicals, food preservatives, adhesives

โš ๏ธ Note: Some chemicals (e.g. acids, pesticides, explosives, industrial alcohol) require special export permissions under Indian law.


๐Ÿงพ Legal Requirements for Exporting Chemicals from India

To legally export chemicals from India, follow this checklist:

1. Register Your Business

Start as:

  • Sole Proprietor
  • Partnership
  • LLP or Pvt. Ltd. Company

Apply for:

  • GST registration
  • MSME (Udyam) registration for subsidies

2. Get Import Export Code (IEC)

Issued by DGFT (Directorate General of Foreign Trade), IEC is mandatory for all exports.

3. Check for Restricted Chemicals

Some chemicals are listed under:

  • SCOMET List (Special Chemicals, Organisms, Materials, Equipment and Technologies)
  • Hazardous Waste Rules
  • Insecticides Act, 1968

If your product is in these categories, you must:

  • Apply for export authorization from DGFT or related ministry
  • Follow hazard labeling, safety data sheet (SDS), and packaging norms

๐Ÿ” Check export restrictions for chemicals here: DGFT SCOMET Guidelines

4. Product Safety Compliance

For most chemicals, you need:

  • Material Safety Data Sheet (MSDS/SDS)
  • HS Code (Harmonized System Code)
  • Packaging with UN numbers, hazard signs, and batch details

5. REACH Compliance (If Exporting to Europe)

REACH is a European Union regulation for chemicals.

  • Required if you’re exporting more than 1 ton/year to EU
  • Need to register substance with ECHA
  • You may need an Only Representative (OR) based in EU

๐Ÿ“ค Step-by-Step: How to Export Chemicals from India

โœ… Step 1: Finalize Your Product & Formula

Decide whether you’re exporting:

  • Finished formulations (e.g. liquid detergent, hair oil)
  • Raw chemicals (e.g. solvents, acids)

Get your productโ€™s:

  • HS Code
  • SDS/MSDS
  • Test reports and label design

โœ… Step 2: Get a Buyer or Export Order

Options:

  • Trade portals: IndiaMART, Alibaba, TradeIndia
  • Online ads: Google, Facebook
  • Government help: EPCs (Export Promotion Councils)

Always get a purchase order and verify buyerโ€™s identity before shipment.

โœ… Step 3: Choose the Right Packaging

  • Use HDPE, LDPE, glass, or metal containers for chemicals
  • Ensure leak-proof and international compliance
  • Label: product name, HS code, batch no, warning symbols, expiry

Bonus Tip: Use UN-certified packaging for dangerous goods

โœ… Step 4: Hire CHA & Freight Forwarder

A Customs House Agent (CHA) helps in documentation, clearance, and port handling. Freight forwarders assist in shipping via air, sea, or road.

Choose from:

  • DHL, FedEx (for small samples)
  • Maersk, MSC (for sea shipping)
  • Blue Dart, Gati (for domestic logistics)

โœ… Step 5: Prepare Export Documents

Document Purpose
Invoice Commercial value
Packing List Product & quantity info
Bill of Lading/Airway Bill Proof of shipment
SDS/MSDS Chemical safety
COO (Certificate of Origin) Issued by Chamber of Commerce
LC or Bank Guarantee (if applicable for payment terms)

๐Ÿง  Keep digital + hard copies ready for customs clearance.

โœ… Step 6: File Shipping Bill with ICEGATE

Register on https://icegate.gov.in and file a Shipping Bill for customs clearance.

Your CHA will help with:

  • Product inspection
  • Clearance from Customs, DGFT, and Excise

โœ… Step 7: Shipment & Payment

  • Send goods to port via logistics
  • Get Bill of Lading after shipment
  • Buyer pays as per terms: advance, LC, or TT

Use RBI-compliant payment gateways or foreign inward remittance via bank.


๐ŸŒ Top Countries Importing Chemicals from India

Country Popular Imports
USA Pharma chemicals, cosmetics, cleaners
UAE Detergents, lubricants, adhesives
Bangladesh Pesticides, FMCG chemicals
UK Organic cosmetics, herbal oils
Kenya/Nigeria Cleaners, toilet products

๐Ÿ’ฐ Profit Potential in Chemical Exports

Letโ€™s look at sample numbers:

Product Local Price (INR/Ltr) Export Price (USD/Ltr) Profit Margin
Liquid Detergent โ‚น20 $1.8โ€“$2.5 300โ€“500%
Engine Coolant โ‚น25 $2.0โ€“$3.0 400%
Herbal Shampoo โ‚น30 $3.0โ€“$4.5 500โ€“700%

With proper branding and B2B tie-ups, margins go even higher.


๐Ÿ’ผ Export Schemes & Subsidies from Indian Govt

  • RoDTEP Scheme: Refund of duties on export products
  • Interest Equalization Scheme: Lower bank interest on loans
  • Export Credit Guarantee Corporation (ECGC): Protects exporters from payment risks
  • MEIS (earlier): Replaced by RoDTEP but was useful for chemical exporters

๐Ÿ“ˆ Smart Tips to Grow Your Chemical Export Business

  1. Focus on 1โ€“2 countries first
    Build trust with importers in UAE, Africa, or Bangladesh
  2. Offer samples first
    Sending 100โ€“200ml samples builds trust and gets quicker orders
  3. Build a Website + Digital Brochure
    Include SDS, specs, pricing, factory photos
  4. Attend Export Fairs & Exhibitions
    Join expos like ChemExpo India, India Chem, Dubai Expo
  5. Register with EPCs
    Like CHEMEXCIL (Basic Chemicals Export Council of India)
  6. Use WhatsApp Business + Email Campaigns
    To stay in touch with buyers

๐Ÿ“Œ Final Thoughts

Exporting chemicals from India is a booming opportunity for small and mid-sized manufacturers. With rising demand for Indian-made formulations and products globally, you can create a highly profitable export business with proper licensing, documentation, and strategy.

Take one product, test it in 1 country, follow all legal steps, and keep scaling. The margins, demand, and repeat orders will make your export business thrive.

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