AYUSH Export Promotion Council – How to Export Ayurvedic Products Legally from India

The global demand for natural wellness and traditional medicine has skyrocketed, placing India’s ancient science of Ayurveda in a prominent international spotlight. This creates a massive opportunity for Indian entrepreneurs and businesses. However, while the market is ripe, the journey to export Ayurvedic products can seem tangled in a web of legal requirements and regulations. This guide will walk you through everything you need to know to export Ayurvedic products legally from India, breaking down the complex process into simple, actionable steps. We will delve into the role of the AYUSH Export Promotion Council (AEPC) and the specific regulations for Ayurvedic exports to ensure your business is built on a foundation of compliance and success.

Understanding the Regulatory Landscape for Ayurvedic Exports

Before you can ship your first container, it’s crucial to understand the governing bodies and laws that oversee the export of Ayurvedic goods from India. This framework ensures product quality, safety, and international acceptance, forming the bedrock of a sustainable export business. Navigating this landscape effectively is the first major step in achieving AYUSH products export compliance India. The key is to see these regulations not as hurdles, but as a roadmap to building a globally trusted brand.

What is the AYUSH Export Promotion Council (AEPC)?

The AYUSH Export Promotion Council (AEPC) is the nodal body established by the Ministry of AYUSH in collaboration with the Ministry of Commerce & Industry. Its primary function is to facilitate and promote the export of AYUSH products—including Ayurveda, Yoga, Unani, Siddha, and Homoeopathy—on a global scale. Think of the AEPC as your strategic partner in the export journey.

Its key objectives include:

Promoting Quality Standards: The council works to establish and promote high-quality standards, certifications, and best practices that align with international requirements.
Providing Market Intelligence: AEPC offers invaluable data on market trends, demand in different countries, and regulatory changes, helping exporters make informed decisions.
Organizing Trade Promotion Activities: It organizes and participates in international trade fairs, buyer-seller meets, and roadshows to connect Indian exporters with potential international buyers.

Actionable Tip: One of the first steps for any serious exporter should be to register with the AEPC. A Registration-cum-Membership Certificate (RCMC) from the council not only adds credibility to your business but is also mandatory for availing various export benefits under the government’s Foreign Trade Policy. You can learn more on the AYUSH Export Promotion Council website.

Core Legal Frameworks for AYUSH Products Export Compliance India

Several key pieces of legislation govern the manufacturing and export of Ayurvedic products. Understanding their roles is essential for ensuring full compliance.

The Drugs and Cosmetics Act, 1940: This is the principal act governing the import, manufacture, distribution, and sale of drugs and cosmetics in India. Ayurvedic, Siddha, and Unani products are classified as “drugs” under this act. The most critical part for manufacturers is Schedule T, which lays down the Good Manufacturing Practices (GMP) for Ayurvedic products. GMP certification is a non-negotiable requirement to prove your products are manufactured in a hygienic, controlled, and quality-assured environment.
Ministry of AYUSH Guidelines: The Ministry of AYUSH regularly issues specific guidelines for Ayurvedic product export. These guidelines cover everything from quality control and testing protocols to packaging, labeling, and shelf-life studies. The ministry’s goal is to ensure that products leaving India meet a baseline quality standard that can be trusted worldwide.
Foreign Trade Policy (FTP): Formulated by the Directorate General of Foreign Trade (DGFT), the FTP governs all import and export activities in India. The most crucial requirement under the FTP for any exporter is obtaining an Importer-Exporter Code (IEC), a 10-digit unique number that is mandatory for customs clearance and international trade transactions.

Your Step-by-Step Guide on How to Export Ayurvedic Products

With a foundational understanding of the regulatory environment, let’s break down the process into a practical, step-by-step guide. Following these steps systematically will help you navigate the complexities of exporting Ayurveda products from India.

Step 1: Set Up Your Business and Get Your PAN

Before you can think about licenses and international buyers, you need a legally recognized business entity, a process detailed in our guide on Company Registration in India.

Choose a Business Structure: You need to decide whether to operate as a Sole Proprietorship, Partnership, Limited Liability Partnership (LLP), or a Private Limited Company.
- Sole Proprietorship: Easiest to start with minimal compliance, but offers no liability protection.
- LLP/Private Limited Company: Recommended for export businesses as they provide limited liability, which protects your personal assets. They also project a more professional and credible image to international buyers.
Obtain a Business PAN Card: Once your entity is registered, you must apply for a Permanent Account Number (PAN) in the name of your business. This is the foundational document for all financial and tax-related activities, including opening a bank account and applying for other licenses.

Starting your business on the right legal footing is critical. If you need assistance with choosing the right structure and completing the registration, TaxRobo’s company registration services can guide you through the entire process seamlessly.

Step 2: Obtain Mandatory Licenses and Registrations

This step involves securing the key licenses that authorize you to manufacture and export your products.

Importer-Exporter Code (IEC): As mentioned, the IEC is a mandatory 10-digit code issued by the DGFT. No export or import can be done without it. You can apply for your IEC online through the DGFT portal.
GST Registration: Goods and Services Tax (GST) registration is mandatory for exporters. This is a critical step, and you can learn more by reading the Ultimate Guide to GST Registration for Small Businesses. It allows you to operate legally and, more importantly, claim benefits on taxes. For exports, you have two options:
1. Export with Payment of IGST: You pay the applicable IGST on your export goods and then claim a refund from the government after the goods have been exported.
2. Export under a Letter of Undertaking (LUT): You can file an LUT with the GST department, which allows you to export goods without paying any IGST upfront. This is highly recommended for new businesses as it significantly improves working capital and cash flow.
AYUSH License: This is a critical license that depends on your business model.
- If you are a manufacturer: You must obtain a manufacturing license from your state’s AYUSH department. This involves setting up a facility that is fully compliant with the Good Manufacturing Practices (GMP) outlined in Schedule T of the Drugs and Cosmetics Act.
- If you are a trader/exporter (not manufacturing): You don’t need a manufacturing license yourself. However, you must source your products from a third-party manufacturer who holds a valid, GMP-certified AYUSH license. You will need a formal agreement with this manufacturer.
RCMC from AEPC: The Registration-cum-Membership Certificate (RCMC) from the AYUSH Export Promotion Council is essential. It validates your business as a genuine exporter in the AYUSH sector and is required to avail benefits under the Foreign Trade Policy.

Step 3: Ensure Product and Packaging Compliance

Your product’s quality and its packaging are your brand ambassadors in the international market. Adhering to the regulations of your target country is non-negotiable.

Destination Country Regulations: Each country or region has its own set of rules. For example, the USA has the Food and Drug Administration (FDA), while the European Union has the European Medicines Agency (EMA). Research their specific requirements for herbal supplements or traditional medicines before you export.
Detailed Compliance Areas:
- Labeling: Your product labels must be accurate and compliant. They typically need to include the complete list of ingredients (botanical names), manufacturing and expiry dates, dosage instructions, batch number, and any necessary warnings. Importantly, this information may need to be in the official language of the destination country.
- Testing: Buyers and regulators will demand proof of your product’s safety. This includes getting reports from NABL-accredited laboratories for things like heavy metal analysis (lead, mercury, arsenic, cadmium) and microbial contamination.
- Certifications: While GMP is a baseline, additional certifications can significantly boost buyer confidence and market access. Consider obtaining WHO-GMP, ISO, HACCP, or Organic certifications depending on your product and target market. These certifications are a powerful testament to your commitment to quality and are a core part of the legal requirements for exporting Ayurvedic products.

Step 4: Finding Buyers and Managing Export Documentation

With your business and products ready, it’s time to find customers and manage the logistics.

Finding International Buyers: You can find buyers through various channels:
- Participating in trade fairs and exhibitions organized by the AEPC and other bodies.
- Listing your products on global B2B portals like Alibaba, Global Sources, and IndiaMART.
- Leveraging your AEPC membership to access trade directories and buyer-seller meets.
Essential Export Documents: Documentation is a critical part of the export process. Even a small error can cause significant delays and costs. Key documents include:
- Proforma Invoice & Commercial Invoice: An initial quote and the final bill, respectively.
- Packing List: A detailed list of the contents of the shipment.
- Certificate of Origin: A document certifying that the goods were manufactured in India.
- Bill of Lading / Airway Bill: A contract between the owner of the goods and the carrier (shipping line or airline).
- Shipping Bill: The primary document filed with the customs department for clearance of goods for export.

A Special Note on Kerala Ayurvedic Products Export

The term “Kerala Ayurveda” carries immense brand value globally, synonymous with authenticity and tradition. If you are involved in Kerala Ayurvedic products export, you have a unique marketing advantage. Be sure to leverage this by:

Highlighting the Origin: Clearly state the origin in your branding and marketing materials.
Geographical Indication (GI) Tags: Check if your products or key ingredients are eligible for a GI tag, which provides legal protection and certifies their origin.
Quality Storytelling: Weave the rich heritage and traditional manufacturing processes of Kerala Ayurveda into your brand story to connect with consumers seeking authentic wellness experiences.

Financial Management and Tax Compliance for Exporters

A successful export business is not just about sales; it’s about profitable and compliant financial management.

Managing Foreign Exchange and Payments

Bank Account: You must have a current account with a bank that is an Authorized Dealer (AD) for foreign exchange. This allows you to receive payments from abroad in foreign currency.
Payment Terms: For new exporters, it is crucial to negotiate secure payment terms.
- Advance Payment: The safest option, where the buyer pays a part or the full amount before shipment.
- Letter of Credit (LC): A highly secure method where the buyer’s bank guarantees payment once the terms of the LC (like submitting correct documents) are met.
FEMA Compliance: All foreign currency transactions are governed by the Foreign Exchange Management Act (FEMA). Your bank will guide you on the necessary declarations, and you can understand the broader framework through our article on Import & Export of Goods/Services: FEMA & Forex Compliance.

GST Refunds and Export Incentives

The government actively encourages exports through various incentives.

GST Refunds: As discussed, if you export by paying IGST, you can claim a full refund. The process is streamlined—the shipping bill is treated as the refund application, and the refund is processed automatically after you file your GST returns (GSTR-1 and GSTR-3B). If you use an LUT, you can claim a refund on the unutilized input tax credit (ITC) on inputs and services used for your exports.
Export Incentives: Keep an eye on government schemes designed to boost exports.
- Duty Drawback Scheme: Allows you to get a refund of the customs duties paid on imported materials that are used in the manufacture of exported goods.
- RoDTEP (Remission of Duties and Taxes on Exported Products): This scheme has replaced the older MEIS and provides refunds for various central, state, and local duties/taxes that are not credited or refunded elsewhere.

Conclusion: Start Your Journey to Export Ayurvedic Products Legally

The global market for Ayurvedic products offers a phenomenal opportunity for growth. While the process may seem detailed, breaking it down into manageable steps—establishing your business, securing key licenses like IEC, GST, and AYUSH, ensuring rigorous product compliance, and mastering your documentation—is the key to success. By diligently following the guidelines for Ayurvedic product export, you can build a reputable, profitable, and sustainable international business. Remember, compliance is not a barrier; it is the bridge to global trust and long-term success as you export Ayurvedic products.

Feeling overwhelmed by AYUSH products export compliance India? Let TaxRobo be your guide. From company registration and GST filing to export documentation support, our experts are here to help you navigate every step. Contact us today for a consultation!

Frequently Asked Questions (FAQs)

Q1. Is an IEC Code mandatory to export Ayurvedic products from India?

A: Yes, absolutely. The Importer-Exporter Code (IEC) from the DGFT is a mandatory 10-digit code for any business planning to engage in the export or import of goods, including Ayurvedic products. It is impossible to clear customs without a valid IEC.

Q2. How do I get an AYUSH license for export?

A: You need to apply for a manufacturing license from your state’s AYUSH department, which requires your facility to be GMP-compliant as per Schedule T of the Drugs and Cosmetics Act. If you are not a manufacturer, you don’t need the license yourself. Instead, you can partner with a third-party manufacturer who already holds a valid, GMP-certified AYUSH license and enter into a formal agreement with them.

Q3. Can I export Ayurvedic products without paying GST?

A: Yes. You can export Ayurvedic products without paying the integrated GST (IGST) by filing a Letter of Undertaking (LUT) with the GST department. This is a highly recommended option for small and medium-sized businesses as it helps manage working capital effectively by avoiding the need to pay tax upfront and then wait for a refund.

Q4. What are the main challenges in exporting Ayurveda products from India?

A: The main challenges include meeting the stringent and varied regulatory and quality standards of different countries (like the US FDA and EU EMA), managing complex documentation accurately, and finding reliable international buyers. Adhering to the legal requirements for exporting Ayurvedic products from the very beginning and investing in quality certifications are crucial to overcoming these hurdles successfully.