Agarwood Export License: Rules, Process & Quotas

Agarwood is highly sought after in perfumes, cosmetics, skincare, and wellness products, with the global market for Agarwood chips expected to reach $67.45 billion by 2031. 

For exporters, this presents a real opportunity, but sending Agarwood overseas isn’t as simple as selling locally. You must navigate government export rules, obtain agarwood export licence, and comply with CITES regulations. 

Understanding these steps helps you avoid legal issues, expand your business internationally, and tap into lucrative overseas markets without risking fines or shipment delays.

What Should You Know About Agarwood and Its Export Restrictions?

Agarwood comes from Aquilaria and Gyrinops trees when a specific type of mould infects them, producing dark, fragrant, resinous wood. It is commercially used in:

• Perfumes, incense, and aromatherapy for its deep woody fragrance.
• Traditional medicine like Ayurveda, Chinese, and Unani practices for its calming and healing properties.
• Carvings and religious rituals, including beads, artifacts, and ceremonial use.

Agarwood is mostly exported as chips, oil, or powder.

Some Aquilaria species are endangered and protected by forest authorities. To prevent illegal trade, the government regulates exports under the Foreign Trade (Development and Regulation) Act, 1992 and FTP 2023, ensuring only legally sourced Agarwood from plantations is exported.

What is the Legal Framework for Agarwood Export?

The Central Government’s updates under FTP 2023 simplify Agarwood exports and clarify the rules. Exporters must follow these guidelines to ensure legal compliance, avoid penalties, and conduct fair trade.

ITC (HS) Code and Description	Export Policy	Old Policy Condition	New Amendment in Policy
12119045Agarwood (Aquilaria Malaccensis) Chips and Powder	Restricted	Annual Quota Allowed: 25,000 kg per year (from artificially propagated sources found outside the forest areas)  Application Requirements: Certificate of Origin (from State Forest Department)Stock Verification CertificateExport Order CopyAuthorised Product PhotographsCompliance Undertaking with CITES	Annual Quota Permitted: 1,51,080 kg per annum (valid between 2024 and 2027) Apply with: Certificate of Origin ( with plantation registration and legal sourcing details)Certified Product ImagesUndertaking confirming CITES compliance and a valid CITES permit at export
33013010Agarwood Oil	Restricted	Annual Allowed Quota: 1,500 kg per year (derived from artificial sources) Application to be submitted with: Certificate of Origin (from State Forest Department)Stock Verification CertificateExport Order CopyAuthorised Product PhotographsCompliance Undertaking with CITES	Revised Per Annum Quota: 7,050 kg/year (valid from 2024-2027) Application inclusions: ( with plantation registration and legal sourcing details)Certified Product ImagesUndertaking confirming CITES compliance and a valid CITES permit at export

What are the Eligibility Criteria for an Agarwood Export Licence?

Following this set of rules laid by the government makes you eligible to obtain the Agarwood export licence:

1. Sourcing 

Only Agarwood from artificially propagated plantations is eligible for export. Wild Agarwood is strictly prohibited under CITES regulations.

2. Registered Plantations 

It’s mandatory to show evidence that the plantation supplying the Agarwood is registered with the State Forest Department. 

3. Certifications

A Certificate of Origin, authenticated by the forest department, is required to confirm procurement details, including date, quantity, and plantation registration.

4. Agarwood Stock Verification

Agarwood is highly regulated under the body Convention on International Trade in Endangered Species (CITES). A designated forest authority must check and verify your Agarwood stock to ensure it comes from legal sources and complies with quotas.

5. Export Quota Compliance

The export quantity permitted by the government has a cap and you must export within the annual limits to remain eligible.

How to Get an Agarwood Export Licence?

Take these steps to obtain the Agarwood export licence for your business:

1. Procure Agarwood Legally

Purchase Agarwood chips, oil, or powder only from registered plantations that artificially propagate the trees.

2. Gather Necessary Certifications

• Certificate of Origin from the Forest Department confirming legal sourcing and plantation registration.
• Stock Verification Certificate issued after physical inspection by the authority nominated by the Principal Chief Conservator of Forests (PCCF).

3. Prepare Supporting Documents

• Forest Department-certified coloured photos of the products.
• Copy of your export order and buyer’s purchase agreement.
• Undertaking confirming compliance with CITES regulations.

4. Apply for Export Licence

Submit your application online via the DGFT portal, attaching all required certificates and documents.

5. Check Export Quantity

Ensure your application complies with the annual quota: 1,51,080 kg for chips/powder, 7,050 kg for oil.

6. Obtain CITES Export Permit

Apply through the Wildlife Crime Control Bureau or designated authority. This permit is mandatory for export.

7. Final Customs Clearance

Present both the DGFT export licence and CITES permit to complete customs clearance before shipping.

What are Some of the Common Hurdles?

A few obstacles you may experience while obtaining the Agarwood export licence:

• You need to adhere to strict legal compliances, like FTP 2023, DGFT rules, State Forest Department requirements, and CITES regulations. 
• The documentation process is usually lengthy. The certificates, photographs, and other documents you attach need government approvals, which can take time. 
• Physical inspection by forest authorities may be delayed, especially for large or widespread plantations.
• The annual quotas set  by the government can limit the volume you can export, affecting your business during peak demand.
• Minor errors in documents or applications can lead to licence denial.
• Obtaining and maintaining an Agarwood export licence can be expensive, as proper documentation, certificates, and compliance with legal requirements add to operational costs.
• Some countries impose additional import rules, even for CITES-compliant Agarwood, so research the target market beforehand.

Ship your Agarwood Safely and Efficiently with CargoX

If you’re all set to export Agarwood products, Shiprocket CargoX is the perfect medium to get them to your customers across borders. We make the export process fast, smooth, and  hassle-free with our AI-powered shipping platform and advanced logistics. 

Our cross-border shipping experts can tackle customs procedures and regulatory requirements, removing the burden from your business. With up-to-date knowledge of international regulations, we ensure your shipments comply with all rules.

We also provide a real-time tracking facility with live shipment status notifications via email and SMS to keep you updated. The complete visibility into the international shipments’ whereabouts and our 24/7 customer support combine together to give you quick fixes to any mid-journey issues. 

Conclusion

Securing an Agarwood export licence may seem like a long process, but careful planning and compliance can turn it into a growth opportunity. By sourcing from registered plantations, getting stock verified, and following government and CITES rules, you not only stay legal but also build a reliable, sustainable export business.

Keeping tabs on the existing yearly quota, following the necessary steps, and leveraging expert services like CargoX can save time, reduce delays, and protect your shipments, allowing you to focus on expanding into international markets confidently. Legal compliance becomes a pathway to long-term business growth and smoother operations.