Status Holder Certification under Foreign Trade Policy 2023

Certain Exporter Firms can get Status Holder Certification under Foreign Trade Policy to get recognition under the policy as Business Leaders who have excelled in international trade and have successfully contributed to the country’s foreign trade.

The status holders are expected to not only contribute towards country’s foreign trade, but also expected to provide guidance to new entrepreneurs.

All exporters of goods, services and technology having an import-export code (IEC) number, on the date of application, shall be eligible for recognition as a status holder based on export performance.

An applicant may be categorized as status holder on achieving the threshold export performance in the current and preceding three financial years as indicated below:

The export performance shall be counted on the basis of FOB of export earnings in freely convertible foreign currencies or in Indian Rupees.

For granting status, an export performance would be necessary in all the 3 preceding financial years (and in all the 2 preceding financial years for Gems & Jewellery Sector).

Conditions for Grant of Status

  1. Export performance of one IEC holder shall not be permitted to be transferred to another IEC holder. Hence, calculation of exports performance based on disclaimer shall not be allowed.
  2. Exports made on re-export basis shall not be counted for recognition.
  3. Export of items under Authorisation, including SCOMET items, would be included for calculation of export performance.

Privileges of Status Holders

  1. Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis.
  2. Input-Output norms may be fixed on priority within 60 days by the Norms Committee; Special scheme in respect of Input Output Norms to be notified by DGFT from time to time, for specified status holder.
  3. Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise anywhere in FTP or HBP.
  4. Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels.
  5. Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.
  6. The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.
  7. Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different preferential trading agreements (PTA), Free Trade Agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA).
  8. Status holders shall be entitled to export freely exportable items (excluding Gems and Jewelry, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower.

Privileges of Status Holders

  1. Status Holders will endeavor to provide skill upgradation/ training in international trade as detailed below:
  1. A model training program of a minimum duration of 6 weeks would be put up in public domain for guidance.
  2. Detailed eligibility requirements, selection criteria, training curriculum etc will be at the discretion of the Status Holder.

Validity of Status Holder Certificate:

    1. Status Holder Certificate or Export House Certificate shall be valid for 5 Years from the date of issue of the certificate.
    2. Certificate renewal shall be filed before the expiry of the existing validity period.

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