Overview
The main objective of foreign trade policies is to make the import-export process simple and attractive for importers, exporters, and traders. There are various export promotion schemes, and Status Holder Certificate is one of them. The Objective of the Export House Certificate or Status Holder Certificate is to boost export performance. As per the updates to the Foreign Trade Policy of 2015-2020, exporters are assigned status holder positions by their export performance. If you have attained a leadership position in your business niche and have an excellent track record of international commerce, you can be a Star Export House. You must have also made significant contributions to India’s foreign trade. Furthermore, you must agree to undertake the mentoring of upcoming Indian entrepreneurs and thus help strengthen India’s export-related commerce.
Export house certificate or export status holders are Indian businesses that have excelled in international trade and made a significant contribution to the country’s foreign exchange earnings. Export house status is provided to all exporters of goods, services and technology, having an import-export code (IE Code). Export house status recognition is based on the export performance of the company in each financial year (FOB / FOR value).
Export House Status Eligibility Criteria Based on the export performance of an exporter, the status category is provided as follows:
- One Star Export House: USD3 – USD25 Million Export Performance
- Two Star Export House: USD25 – USD100 Million Export Performance
- Three Star Export House: USD100 – USD500 Million Export Performance
- Four Star Export House: USD500 – USD2000 Million Export Performance
- Five Star Export House: USD2000 Million and above Export Performance
For granting export house status, export performance is necessary for at least two out of three years.
The above Export performance is to be achieved in the current plus previous three Financial Years. For Example, if You were applying for Star Export House Certification in July 2019, then your total Export Turnover for the Current FY (i.e., April to July 2019) plus the previous three FY (i.e., 2016-17, 2017-18 & 2018- 19) should be $ 3 million to be eligible for One Star Export House Certification.
Important Notes:
- Turnover of only those shipments can be counted for which e-BRC has been generated.
- Export performance in at least two out of the four Financial Years is compulsory to get Star Export House Certificate.
- The DGFT does not recognize exports made on a re-export basis.
- For the export performance, the DGFT will consider the Free on Board (FOB) value of export earning in free foreign exchange. In the case of deemed exports—that is, transactions involving goods that remain in the country and which are paid for either in Indian or foreign freely convertible currency —the DGFT will take into account the FOB/FOR value of the exports after it is converted from Indian rupees to US dollars. For this conversion, the exchange rate will be declared by the Central Board of Excise and Customs (CBEC) on 1st April of the Financial Year.
Benefits
Standard Input-Output Norms (SION)
- Norms fixed under Advance Authorization/EPCG License within 2 months on a priority basis by the norms committee.
Exemption from the furnishing of Bank Guarantee (BG)
- The Status Holders are 100% exempted from the furnishing of Bank Guarantee (BG) under the Advance/EPCG Scheme.
Establishment of Export Warehouse
- As per the Department of Revenue (DoR) guidelines, 2 star and above status holders shall be eligible to establish Export Warehouses.
Export of free-of-cost samples
- Status Holders/Star Export houses are entitled to export freely exportable items on a free of cost basis for the export promotion purpose subject to the annual limit as specified (Excluding Gems and Jewellery, Articles of Gold and precious metals).
Self Certification
Three Star/Four Star/Five Star status holders (Manufacturer Exporters) will be enabled to self-certify their manufactured goods as originating from India (Certificate of origin) to qualify for preferential treatment under following
- Preferential trading agreements (PTA),
- Free Trade Agreements (FTAs),
- Comprehensive Economic Cooperation Agreements (CECA)
Comprehensive Economic Partnership Agreements (CEPA).
Ease in Documentation and Preferential treatment
- Compulsory negotiation exempted for export documents through banks and entitled to preferential treatment and priority in the handling of import-export consignments.
AEO (Authorized economic operator) Benefits
- Three Star and above star holders shall be directly entitled to AEO Benefits.
Financial assistance
- There are various Government Schemes under which status holders are given access to loans easily.
Validity of Status Holder Certificate:
- Status Holder Certificate or Export House Certificate shall be valid for 5 Years from the date of issue of the certificate.
- Certificate renewal shall be filed before the expiry of the existing validity period.
How can we assist you in getting Star Export House / Status Holder Certification?
- We are leading Star Export House Consultants in India.
- We assist our client in the compilation of exports made in the present FY plus the last three financial years export and analyze to check the eligibility for getting a certificate.
- Accordingly, prepare the application along with the documentation.
- Submit the application online & coordinate with DGFT till issuance of the Status Holder Certificate.
- Guiding Clients in taking advantage of the various privileges given to Star Export House Holders.