Masala (Spice) Board of India: Certification & Eligibility Criteria

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Masala (Spice) Board of India: Certification & Eligibility Criteria

Spices are natural plant products. They are the soul and body of Indian cuisine as well as other cuisines around the world. Without spices, many of our dishes would taste bland. Everyone loves a nicely cooked meal with flavourful spices, and this is why spices are always in high demand. They’re an inevitable part of the kitchens in India and all the countries around the world. However, not all countries produce enough spices for the entire population. This is why they need to import spices. India is the largest exporter of spices in the world.

The Masala Board or the Spice Board of India is an organization under the Ministry of Commerce and Industry, Government of India. It came into effect from 26th February, 1987 under the Spices Board Act, 1986 after the merging of the erstwhile Cardamom Board and the Spices Export Promotion council under Department of Commerce’s administrative control. 

The Board serves as an international link between the Indian exporters and importers around the globe. It is responsible for development, promotion and regulation of export of 52 spices/masalas and spice/masala products. It plays an important role in promotion of production, processing, domestic marketing and export of both small and large cardamom under the Indian Cardamom Research Institute. Producers and businesspersons who are involved in the exports of spices need to get Masala/Spice Board Certification/Registration as a mandatory requirement. Also, according to the Spice Board Act, 1986, it is mandatory to have an incorporation certificate to conduct the import and export procedures officially. Anyone who is found engaged in trading of spices without a certificate from the Board can face arrest and imprisonment up to 12 months.

List of all the Spices Mentioned in the Spice Board Act

There are 52 spices/masalas which can be exported from India. These spices are included in the Spice Board Act, 1986 and their list is mentioned below:

Interesting Fact: Chilly is the most exported spice from India. It is exported in large amounts to different countries around the world such as the US, the UAE, Saudi Arabia, and the UK.

Functions of Spice Board of India

The following are the functions of the Spice Board of India

• Promotes a wide variety of spices in the North-East  
• Responsible for research and development of domestic marketing of cardamom (both small and large) 
• Introduces measures for quality control of spices
• Provides certification of spices
• Regulates export of spices from India to other countries
• Encourages development of spice industry

Spices Board Registration’s Eligibility Criteria

To be eligible for registration by the Masala or Spice Board of India, the exporter or manufacturer needs to meet the following criteria:

• Should be registered as an entity under the Companies Act, 1956, or the Partnership Act of 1932.
• It is mandatory for the exporter or manufacturer to possess a valid Import-Export (IE) Code which is issued by the Directorate General of Foreign Trade.
• A minimum turnover of Rs 2.5 lakhs in previous financial year.
• Necessary infrastructure, technical knowledge and quality control systems for producing high quality spices.
• Permanent business place and storage facilities.
• Compliance with food safety and quality standards as mandated by the Spice Board of India
• Must follow guidelines and procedures for export or manufacture of spices as prescribed by the Spice Board of India.

Documents Required for the Spices Board Registration Certificate

The following documents are required for the Spices Board Registration Certificate

• Import Export Code
• PAN Card
• GST Certificate
• Certificate of Incorporation
• Partnership Deed
• MSME registration
• FSSAI Certificate
• Pollution Control Board Certificate
• MOA & AOA
• List of Directors along with their contact details
• Confidential Bank Report stating the company’s net worth
• If a company authorizes an applicant to file the application for Spices Board Registration, then an authorization letter which authorizes the applicant is mandatory
• In case the manufacturing premise is on lease or rent, lease deed or rent agreement is required

Certificate of Registration as Exporter of Spices (CRES)

Anyone who is involved in export of 52 spices (mentioned in the Spice Board Act, 1986), whether they are a manufacturer or retailer, has to get Certificate of Registration as Exporter of Spices (CRES). This certificate is provided once the applicant has completed the registration. The applicant is given unique credentials to log into the official portal of Spice Board so that he can provide all the necessary information on the portal. Afterwards, all the relevant documents have to be submitted at the head office. Once the Certificate of Registration as Exporter of Spices (CRES) is ready, you can download it from the Spice Board of India’s official portal.

Masala/Spices Board of India Registration Process

The Masala Board of India’s Registration process involves the following steps:

• As a first step, the applicant must visit the official portal of the Spice Board of India and register their name by submitting the contact number, e-mail ID, and Import-Export (IE) Code Certificate. 
• Once the first step is completed, the applicant has to fill the application form.
• The export form i.e., Form 1 has to be filled by the applicant and then a prescribed fee has to be paid in form of the demand draft in the name of Spice Board.
• Make sure the form is filled in the prescribed manner to avoid rejection of the application. The application fee will be non-refundable.
• Documentary evidence, which can be a certificate or reference from the bank, has to be submitted by the applicant for showing his financial status.
• Afterwards, all the submitted documents will be sent for verification purpose to a Spice Board authorized regional office.
• If the application or documents contain any discrepancies or errors, the application has to be corrected. 
• In case, there are no issues and the application is approved, the regulatory authority will issue the Certificate of Registration as Exporter of Spices (CRES) to the applicant.

Penalty for violation of Spice Board Certificate

The responsibility of regulation and promotion of Indian spices lies with the Spice Board of India. This Board provides the exporters certification which is mandatory for the export of spices from India. If the exporters do not comply with the rules and regulations of the Board, they face penalties and other consequences depending on the nature of violation. In cases of a violation which is severe or repeated, the Spice Board of India may revoke or cancel the certificate of the exporter. In some cases, exporters can get blackmailed by the board which will forbid them from exporting spices from India. These exporters can also have legal actions being taken against them.

Things to keep in mind after receiving Spice Board Certificate

Once the exporter or manufacturer receives the CRES, they have to keep the following things in mind:

• Quarterly Returns using Form B should be submitted. Otherwise, a fine of Rs 500 will be imposed.
• Application of certificate renewal must be made 2 months prior to the date of expiry. If renewal isn’t sought, application for a fresh certificate must be submitted.
• The certificate may get canceled in case no spice or spice products are exported by the certificate holder during the block period of 3 years.
• If the premises get changed, the same must be verified by the Directorate General of Foreign Trade (DGFT) in the Importer Exporter Code (IE Code) upon which the updated information must be shared with the Spice Board of India for re-issuance of CRES.

Conclusion

Spices are the soul and body of different cuisines around the world. Many of our dishes would taste bland without the use of spices. Imagine pizza without oregano seasoning or Kadi without asafoetida/hing. It doesn’t sound right. Everyone loves and deserves a nicely cooked meal with flavourful spices, and this is why spices are always in high demand. The Masala Board or the Spice Board of India is an organization under the Ministry of Commerce and Industry, Government of India. It is responsible for maintaining the high quality of spices in India. It came into effect from 26th February, 1987 under the Spices Board Act, 1986 after the merging of the erstwhile Cardamom Board and the Spices Export Promotion Council under Department of Commerce’s administrative control. The Spice Board of India promotes a wide variety of spices in the North-East. It is responsible for research and development of domestic marketing of cardamom (both small and large). It introduces measures for quality control of spices and provides certification of spices. The Board serves as an international link between the Indian exporters and importers around the globe. It is responsible for development, promotion and regulation of export of 52 spices/masalas and spice/masala products. It plays an important role in promotion of production, processing, domestic marketing and export of both small and large cardamom under the Indian Cardamom Research Institute. Producers and businesspersons who are involved in the exports of spices need to get Spice Board Certification/Registration as a mandatory requirement. If you’re interested in opening up a spice business or getting Spices Board Registration, connect with Registrationwala now!

Frequently Asked Questions (FAQs)

Q1. When was the Spice Board of India established?

A. The Masala Board or the Spice Board of India is an organization under the Ministry of Commerce and Industry, Government of India. It came into effect from 26th February, 1987 under the Spices Board Act, 1986 after the merging of the erstwhile Cardamom Board and the Spices Export Promotion council under Department of Commerce’s administrative control. 

Q2. Who requires the Certificate of Registration as Exporter (CRES)?

A. Anyone who is involved in export of 52 spices (mentioned in the Spice Board Act, 1986), whether they are a manufacturer or retailer, has to get Certificate of Registration as Exporter of Spices (CRES). 

Q3. What is the validity period of the CRES?

A. Certificate of Registration as an Exporter is issued for a block period of 3 years.

Q4. Can CRES be canceled?

A. Yes. In case the exporter does not comply with the rules and regulations of Spice Board of India, their certificate can be canceled.

Q5. What is the Import - Export (IE) Code Certificate?

A. Import - Export (IE) Code Certificate is issued by the Director General of Foreign Trade to a person who engages in export and import business. IE Code Certificate helps the government to recognize the importers and exporters.

Q6. If my CRES is lost, how can I get a duplicate CRES?

A. In case CRES gets lost, a request has to be sent to the Spice Board of India. An affidavit in stamp paper worth Rs. 100/- as per the sample format along with the application and attested copy of the IE code should be submitted for getting a duplicate CRES.

Q7. Can I possess more than one CRES?

A. No, issuance of only one CRES is permitted against a single IE code number. Any proprietor is only allowed to have one IEC number. If more branches under one IEC need to be incorporated in the CRES, an endorsement of address has to be done. 

Q8. What is the duration for the issuance of CRES and the mode of dispatch?

A. License can be issued in 7 working days after receipt of application and complete documents in the concerned Board’s Office. Original license will be sent by registered speed post. A copy of the license can be faxed /emailed to the exporter on request in case of urgency.

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