Everything Indian exporters need to know about selling to the European Union. Customs duties, CE marking, REACH and RoHS compliance, CBAM, VAT, shipping logistics, documentation, and packaging requirements.
The European Union is India's second-largest trading partner (after the USA) and the third-largest destination for Indian exports. Bilateral merchandise trade between India and the EU exceeds
20 billion annually, with Indian exports to the EU at approximately $65-70 billion.
Is There an India-EU Free Trade Agreement?
No. India and the EU launched negotiations for a Broad-based Trade and Investment Agreement (BTIA) in 2007. Talks stalled in 2013 over disagreements on market access for automobiles, wines and spirits, dairy, and data protection. Negotiations were formally resumed in mid-2022, and negotiations remain ongoing. As of August 2026, no agreement has been concluded. Indian exports therefore face standard MFN (Most Favored Nation) duty rates under the WTO.
Does India Benefit from EU GSP or GSP+?
India was a beneficiary of the EU's standard GSP (Generalised Scheme of Preferences) until 2014, when it graduated out of the programme because the World Bank classified India as an upper-middle-income country for three consecutive years. India was never eligible for GSP+ (the enhanced scheme requiring ratification of 27 international conventions), as GSP+ is reserved for "vulnerable" developing countries with limited export diversification. Indian goods now face full MFN rates on entry into the EU.
EU Customs Duties & TARIC
The EU operates a Common External Tariff (CET). All 27 member states apply the same customs duty rates on goods imported from outside the EU. Duty rates are codified in the TARIC (Tarif Intégré Communautaire) database, which extends the Harmonized System (HS) to 10 digits and includes all EU trade policy measures.
What Are the EU Duty Rates for Common Indian Exports?
Product Category
MFN Duty Range
Anti-Dumping?
Textiles & Garments
8-12%
Some items
Gems & Jewelry
0-4%
No
Pharmaceuticals
0-6.5%
No
Chemicals & Dyes
0-6.5%
Some (certain organic chemicals)
Agricultural Products
0-20% (+ specific duties)
No
Spices
0-12.5%
No
Leather Goods
3-8%
No
Iron & Steel Products
0-7.5%
Yes (certain flat-rolled products)
Aluminium Products
3-7.5%
Yes (certain extrusions)
Engineering Goods
1.7-6.5%
Some items
Seafood & Shrimp
0-20%
No
Automotive Parts
3-4.5%
No
Are There Anti-Dumping Duties on Indian Products?
The EU maintains anti-dumping duties on several categories of Indian products. Key products currently subject to anti-dumping measures include certain flat-rolled stainless steel products, stainless steel fasteners, certain iron or steel tubes and pipes, sulfanilic acid, and certain polyethylene terephthalate (PET). Anti-dumping duties can add 5-30% on top of the standard MFN rate. Check the EU's Official Journal or the European Commission's trade defence database for current measures.
VAT Across the EU
Unlike a single federal sales tax, Value Added Tax (VAT) in the EU is set by each member state individually. VAT is charged on imports at the point of entry into the EU, on top of customs duties. The importer of record is liable for paying import VAT.
Standard VAT Rates by Country
Country
Standard VAT Rate
Country
Standard VAT Rate
Germany
19%
France
20%
Italy
22%
Spain
21%
Netherlands
21%
Belgium
21%
Poland
23%
Sweden
25%
Austria
20%
Denmark
25%
Ireland
23%
Portugal
23%
Greece
24%
Czech Republic
21%
Romania
19%
Hungary
27%
What Is IOSS (Import One-Stop Shop)?
For e-commerce shipments valued at or below EUR 150, the Import One-Stop Shop (IOSS) allows sellers to collect VAT at the point of sale and remit it through a single monthly return in one EU member state. This simplifies customs clearance (goods are released without the buyer paying VAT on delivery) and improves the customer experience. Without IOSS, the buyer must pay import VAT plus a handling fee charged by the carrier, leading to refused deliveries and returns.
Key Regulatory Framework
The EU has some of the most comprehensive product safety and environmental regulations in the world. Non-compliance can result in goods being refused at the border, recalled from the market, or destroyed. With costs borne entirely by the exporter or importer.
4.1 CE Marking
CE marking ("Conformité Européenne") is a mandatory conformity marking for products sold in the European Economic Area. It is not a quality mark. It indicates that the product meets all applicable EU safety, health, and environmental directives.
Products Requiring CE Marking
Electronics & electrical equipment. Low Voltage Directive (2014/35/EU) and EMC Directive (2014/30/EU)
Toys. Toy Safety Directive (2009/48/EC), with strict limits on chemicals, small parts, and flammability
Personal protective equipment (PPE). PPE Regulation (EU) 2016/425, with three categories of risk
Medical devices. Medical Devices Regulation (EU) 2017/745 (MDR), requiring clinical evaluation and Notified Body certification for higher risk classes
Construction products. Construction Products Regulation (EU) 305/2011
Radio equipment. Radio Equipment Directive (2014/53/EU), including Bluetooth, Wi-Fi, and cellular devices
For low-risk products, a manufacturer can self-declare conformity by preparing a Declaration of Conformity (DoC) and maintaining a technical file. For higher-risk products (Class II medical devices, certain PPE, pressure equipment), you must have your product assessed by a Notified Body. An EU-designated testing and certification organisation.
4.2 REACH Regulation
REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) is the EU's comprehensive chemical safety regulation. It affects virtually every product containing or coming into contact with chemical substances.
Registration. Chemical substances manufactured or imported into the EU in quantities above 1 tonne per year must be registered with ECHA (European Chemicals Agency). Non-EU manufacturers must appoint an Only Representative (OR) in the EU to handle registration.
SVHCs (Substances of Very High Concern). If your product (article) contains any SVHC above 0.1% w/w, you must inform your EU customer and, if requested, the consumer. The SVHC Candidate List is updated twice a year and currently contains over 230 substances.
Restrictions (Annex XVII). Certain substances are restricted or banned in specific products. Examples include lead in jewelry, cadmium in plastics, and nickel in items with prolonged skin contact.
Authorisation (Annex XIV). Substances on the Authorisation List cannot be used without specific authorisation from the European Commission.
4.3 RoHS Directive
The Restriction of Hazardous Substances Directive (RoHS, 2011/65/EU) restricts the use of ten hazardous substances in electrical and electronic equipment (EEE). All EEE placed on the EU market must comply with RoHS limits:
Substance
Maximum Concentration
Lead (Pb)
0.1% (1000 ppm)
Mercury (Hg)
0.1% (1000 ppm)
Cadmium (Cd)
0.01% (100 ppm)
Hexavalent Chromium (Cr6+)
0.1% (1000 ppm)
PBBs (Polybrominated biphenyls)
0.1% (1000 ppm)
PBDEs (Polybrominated diphenyl ethers)
0.1% (1000 ppm)
DEHP, BBP, DBP, DIBP (4 phthalates)
0.1% each (1000 ppm)
4.4 EU Deforestation Regulation (EUDR)
The EU Deforestation Regulation (Regulation 2023/1115), effective from 30 December 2024 for large operators and from 30 June 2025 for SMEs, requires companies placing certain commodities on the EU market to conduct due diligence proving the products are deforestation-free and legally produced.
Seven Commodities Covered by EUDR
Cattle. Including beef, leather, and hides
Cocoa. Beans, butter, powder, and chocolate
Coffee. Green beans, roasted, and instant
Oil palm. Palm oil and its derivatives
Rubber. Natural rubber and rubber products
Soya. Soybeans, soybean oil, and soy meal
Wood. Timber, pulp, paper, printed products, and furniture
Indian exporters of these products must provide geolocation data of the production plot and demonstrate the land was not deforested after 31 December 2020. A due diligence statement must be submitted via the EU Information System before goods can enter the EU market.
4.5 CBAM (Carbon Border Adjustment Mechanism)
CBAM is the EU's mechanism to prevent "carbon leakage". The risk that production shifts to countries with lower carbon costs. The transitional reporting phase began in October 2023. The full financial phase begins on 1 January 2026, requiring importers to purchase CBAM certificates corresponding to the carbon price that would have been paid under the EU Emissions Trading System (ETS).
CBAM Sector
Impact on India
Cement
Moderate. India exports limited cement to EU
Iron & Steel
High. India is a major steel exporter to EU
Aluminium
High. Significant aluminium exports affected
Fertilizers
Moderate. Urea and other fertilizers covered
Electricity
Low. Not directly relevant for India
Hydrogen
Low. Emerging sector, limited current trade
Product-Specific Requirements
5.1 Food & Agricultural Products
The EU has among the strictest food safety standards globally. Indian food exports are subject to enhanced checks due to historical non-compliance issues (particularly pesticide residues on spices and aflatoxins in groundnuts).
EU Food Safety Requirements
General Food Law (Regulation 178/2002). Traceability, food safety responsibility, and recall procedures
Maximum Residue Levels (MRLs). EU MRLs for pesticides are often stricter than Codex Alimentarius standards. Indian spice exporters must test for compliance before shipping
Food contact materials (FCM). Regulation 1935/2004 governs materials that come into contact with food (packaging, utensils, machinery)
Novel Foods Regulation (2015/2283). Foods not significantly consumed in the EU before May 1997 require pre-market authorisation
Organic certification. To sell as "organic" in the EU, products must be certified under EU organic regulation (2018/848) by an EU-recognised control body. India's NPOP certification is recognised as equivalent
Health certificates. Required for products of animal origin (seafood, dairy, egg products), issued by India's Export Inspection Council (EIC) or MPEDA
5.2 Textiles & Apparel
The EU Textile Regulation (1007/2011) governs the labelling and fibre composition of textile products:
Fibre content labelling. All textile products must carry a label showing the fibre composition by percentage (e.g., "100% Cotton" or "70% Polyester, 30% Cotton"). Labels must be in the language of the destination country.
REACH compliance. Restricted substances in textiles include azo dyes (releasing carcinogenic amines), certain flame retardants, and formaldehyde above specified limits.
OEKO-TEX Standard 100. While not legally mandatory, this voluntary certification is widely valued by EU buyers and retailers as proof that textiles are free from harmful substances.
EU Ecolabel. Optional environmental certification for textiles meeting strict criteria on water pollution, air emissions, and chemical use during production.
5.3 Chemicals
Beyond REACH registration (covered in Section 4.2), chemical exporters must comply with CLP (Classification, Labelling and Packaging) Regulation (EC) 1272/2008:
Chemicals must be classified according to the GHS (Globally Harmonized System) and labelled with appropriate hazard pictograms, signal words, and hazard/precautionary statements.
Safety Data Sheets (SDS) in the language of the destination country must accompany each chemical shipment.
Substances and mixtures must be notified to ECHA's Classification & Labelling Inventory.
5.4 Machinery
The Machinery Directive (2006/42/EC) requires that all machinery placed on the EU market satisfies essential health and safety requirements:
Risk assessment and technical documentation must be prepared and retained for 10 years.
A Declaration of Conformity must be issued and CE marking affixed.
Operating instructions must be provided in the official language(s) of the destination EU member state.
Certain high-risk machinery categories (listed in Annex IV) require Notified Body involvement.
5.5 Pharmaceuticals
Pharmaceuticals exported to the EU require:
EMA (European Medicines Agency) marketing authorisation. Through the centralised procedure (mandatory for certain product types) or national / decentralised / mutual recognition procedures.
GMP certification. Manufacturing facilities must be GMP-certified by the competent authority of an EU member state. India's CDSCO GMP certificate is not automatically recognised; EU inspections of Indian facilities are common.
Qualified Person (QP). An EU-based Qualified Person must certify each batch before release to the EU market.
Serialisation. The Falsified Medicines Directive (2011/62/EU) requires unique identifiers and tamper-evident features on prescription medicines.
Documentation for EU Exports
Correct documentation is critical for smooth customs clearance in the EU. Missing or incorrect documents cause delays, demurrage charges, and potential rejection of consignments.
Itemized contents with weights and dimensions per package
Both sides
Bill of Lading / Airway Bill
Contract of carriage; title document for sea freight
Both sides
Shipping Bill
Indian customs export declaration filed via ICEGATE
Indian Customs
Certificate of Origin
Non-preferential CoO issued by chambers of commerce or export promotion councils
EU Customs
Customs Declaration (SAD)
Single Administrative Document. The standard EU customs import declaration form
EU Customs
EORI Number
Economic Operators Registration and Identification number. Your EU importer must have one
EU Customs
EUR.1 Movement Certificate
Not currently applicable (no India-EU FTA), but will be needed if a future FTA is concluded
Future FTA
CE Declaration of Conformity
Manufacturer's declaration that the product meets applicable EU directives
EU market surveillance
IEC (Import Export Code)
10-digit code from DGFT; mandatory for all Indian exporters
Indian Customs
EU Entry Points & Customs Procedures
The EU is a single customs territory, meaning goods cleared at any EU port can move freely to any member state. However, choosing the right port of entry affects transit time, cost, and proximity to your end customer.
Major EU Ports for Indian Exports
EU Port
Country
Best For
Rotterdam
Netherlands
Europe's largest port; gateway to Benelux, Germany, and Central Europe
Hamburg
Germany
Germany, Scandinavia, Eastern Europe; strong India trade links
Antwerp-Bruges
Belgium
Chemicals, petrochemicals; strong distribution network to France, UK
Piraeus
Greece
Shortest transit from India via Suez; gateway to SE Europe and Mediterranean
Genoa / La Spezia
Italy
Italy, Southern France, Switzerland; shorter transit than northern ports
Barcelona / Valencia
Spain
Spain, Portugal, Western Mediterranean
What Is AEO (Authorised Economic Operator)?
AEO is the EU's trusted trader programme. An EU importer with AEO status enjoys simplified customs procedures, fewer physical inspections, priority treatment during customs checks, and reduced guarantees. If your EU buyer holds AEO certification, your goods will generally clear customs faster. India has a Mutual Recognition Agreement for AEO with the EU, meaning Indian AEO-certified exporters also receive some benefits at EU borders.
E-Commerce to the EU
Selling directly to EU consumers via e-commerce requires understanding the EU's customs and VAT rules for low-value shipments, as well as marketplace obligations.
De Minimis Threshold & VAT Rules
Since July 2021, the EU eliminated the EUR 22 VAT exemption for low-value imports. All goods imported into the EU, regardless of value, are subject to import VAT. However:
Customs duty de minimis: EUR 150. Consignments with an intrinsic value of EUR 150 or less are exempt from customs duties (but not VAT).
IOSS for VAT collection. For shipments up to EUR 150, sellers can register for IOSS to collect VAT at the point of sale (see Section 3).
Above EUR 150. Full customs duties and import VAT apply. The importer of record (buyer or carrier) must clear goods through customs.
Marketplace Obligations
Under EU rules, online marketplaces (Amazon, eBay, Etsy, etc.) that facilitate sales from non-EU sellers to EU consumers are deemed the "supplier" for VAT purposes. This means the marketplace collects and remits VAT on your behalf for shipments up to EUR 150. For shipments above EUR 150, standard import procedures apply.
Shipping & Logistics
The primary shipping route from India to the EU passes through the Suez Canal. Most major shipping lines offer direct or one-stop services from Indian ports to key EU gateways.
Transit Times from India to EU Ports
Indian Port
EU Port
Transit Time (Sea)
JNPT (Nhava Sheva)
Rotterdam / Hamburg
20-25 days
Mundra
Antwerp / Rotterdam
20-24 days
JNPT / Mundra
Piraeus
14-18 days
Chennai
Genoa / Rotterdam
22-27 days
Kolkata / Haldia
Hamburg
25-30 days
Shipping Methods Compared
Method
Transit Time
Cost (approx.)
Best For
Sea Freight (FCL)
20-25 days
$2,000-$4,500 per 20ft container
Bulk shipments, heavy goods
Sea Freight (LCL)
25-35 days
$40-$70 per CBM
Smaller volumes, trial shipments
Air Freight
2-3 days
$3-$7 per kg
High-value, perishables, urgent shipments
Express Courier
3-5 days
$7-
2 per kg
Samples, small DTC orders, e-commerce
Packaging & Labelling
The EU has extensive packaging regulations focused on waste reduction, recycling, and producer responsibility. Indian exporters must factor these requirements into their product design and costing.
EU Packaging and Packaging Waste Directive
The revised Packaging and Packaging Waste Regulation (PPWR, adopted 2024) introduces stricter recycling targets, restrictions on certain single-use packaging, and mandatory recycled content minimums. Key requirements:
Extended Producer Responsibility (EPR). Producers (including importers) are financially responsible for the collection, sorting, and recycling of packaging they place on the EU market. Your EU importer must register with the national EPR scheme (e.g., Der Grüne Punkt in Germany, CITEO in France).
Green Dot symbol. While no longer legally required in all member states, the Green Dot (Grüner Punkt) indicates that the producer contributes to a packaging recovery scheme. It is still widely used in Germany, Austria, and several other countries.
Material identification marks. Packaging materials should carry recycling identification codes (e.g., PET 1, HDPE 2, PP 5 for plastics; PAP 20, PAP 21 for paper/cardboard).
Heavy metal limits. The combined concentration of lead, cadmium, mercury, and hexavalent chromium in packaging must not exceed 100 ppm.
Language Requirements
Product labels, instructions, and safety information must be in the official language(s) of the EU member state where the product is sold. For example:
Germany: German
France: French
Italy: Italian
Spain: Spanish (+ Catalan, Basque, Galician in some regions)
Netherlands: Dutch
Belgium: French and Dutch (and German in some areas)
Multi-language labels are common for products sold across multiple EU markets. Plan your label design to accommodate multiple languages without overcrowding.
Key Trade Statistics
India-EU trade has grown steadily over the past decade, with the EU accounting for approximately 14-15% of India's total merchandise exports.
Top Indian Exports to the EU
Category
Key Products
Approx. Share
Textiles & Apparel
Cotton garments, home textiles, carpets, handicrafts
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