RBI/DGFT/Indian Guidelines

Star Export House Certificate: Eligibility, Categories, Application Process, and Benefits Explained

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What is a Star Export House/Status Holder Certificate?

A Star Export House or Status Holder Certificate is a recognition granted by the Directorate General of Foreign Trade (DGFT) in India. This certificate is awarded to exporters who have achieved a certain level of export performance, acknowledging their contribution to the country’s foreign trade. The status holder certification program is designed to encourage and reward exporters for their efforts in boosting India’s exports, providing them with various benefits and incentives to enhance their competitiveness in the global market.

Eligibility for Status Holder Certificate

To be eligible for a Status Holder Certificate, an exporter must meet specific criteria related to their export performance. The eligibility is primarily based on the export turnover of the business over a particular period. The key criteria include:

  1. Export Performance: The exporter’s performance is evaluated based on the export turnover achieved in the previous three financial years plus the current financial year.
  2. Filing of Returns: The exporter must have filed all necessary returns, such as the Export Declaration Form (EDF) and the Importer Exporter Code (IEC) annual returns.
  3. No Pending Dues: The exporter should not have any pending dues with customs authorities or any other regulatory bodies.
  4. Compliance with Export Regulations: The exporter must comply with all applicable export regulations and laws.

Categories of Status Holder Certificate

The Status Holder Certificate is categorized into five distinct levels based on the exporter’s export performance. These categories are:

  1. One Star Export House (1 Star):
    • Export Performance: Minimum of USD 3 million in exports.
  2. Two Star Export House (2 Star):
    • Export Performance: Minimum of USD 25 million in exports.
  3. Three Star Export House (3 Star):
    • Export Performance: Minimum of USD 100 million in exports.
  4. Four Star Export House (4 Star):
    • Export Performance: Minimum of USD 500 million in exports.
  5. Five Star Export House (5 Star):
    • Export Performance: Minimum of USD 2000 million in exports.

The evaluation for these categories is based on the Free on Board (FOB) value of the exporter’s export turnover.

Issuance of Status Holder Certificate

The Status Holder Certificate is issued by the Directorate General of Foreign Trade (DGFT). Exporters who meet the eligibility criteria can apply for the certificate through the DGFT’s online portal. The application process involves submitting the required documents, including export performance data, proof of compliance with export regulations, and other relevant information.

Validity of Status Holder Certificate

The Status Holder Certificate is valid for a period of five years from the date of issuance. Exporters must ensure that they maintain their export performance and compliance with regulations throughout this period to retain their status.

How to Apply for a Fresh Status Holder Certificate

Applying for a Status Holder Certificate involves a series of steps to ensure that the exporter’s eligibility and compliance are thoroughly reviewed. Here’s a step-by-step guide:

  1. Registration on DGFT Portal: Exporters must first register on the DGFT online portal if they haven’t done so already. Click Here.
  2. IEC Code: Ensure that the Importer Exporter Code (IEC) is valid and updated.
  3. Prepare Documents: Gather all necessary documents, including export performance data for the last three years, compliance certificates, and any other relevant documents.
  4. Online Application: Log in to the DGFT portal and navigate to the ‘Apply for Status Holder Certificate’ section. Click Here.
  5. Fill Application Form: Complete the application form with accurate details and upload the required documents.
  6. Pay Application Fee: Pay the applicable application fee online.
  7. Submit Application: Submit the application and keep a copy of the acknowledgment for future reference.
  8. DGFT guidelines: Additionally click here to refer the guidelines issued by DGFT on step by step procedure.

How to Re-Validate an Expired Certificate

If the Status Holder Certificate expires, exporters can apply for re-validation. The re-validation process involves:

  1. Check Eligibility: Ensure that the export performance and compliance criteria are still met.
  2. Prepare Documents: Update all necessary documents, including recent export performance data and compliance certificates.
  3. Online Application: Log in to the DGFT portal and apply for re-validation of the Status Holder Certificate.
  4. Pay Application Fee: Pay the applicable fee for re-validation.
  5. Submit Application: Submit the application and keep a copy of the acknowledgment.

Regulatory Guidelines

The issuance and management of Status Holder Certificates are governed by the Foreign Trade Policy (FTP) of India. The current guidelines are outlined in the FTP 2015-2020, which is periodically updated to reflect changes in trade policies and economic conditions. Key guidelines include:

  • Export Performance Calculation: The FOB value of exports is used to calculate export performance.
  • Compliance Requirements: Exporters must adhere to all relevant export regulations and maintain proper documentation.
  • Audit and Verification: The DGFT may conduct audits and verification checks to ensure the accuracy of the information provided by exporters.

Benefits of Status Holder Certificate

Being recognized as a Status Holder provides several benefits to exporters, enhancing their operational efficiency and competitiveness in the global market. Some of the key benefits include:

  1. Priority Clearance: Status Holders receive priority in customs clearance, reducing delays and improving supply chain efficiency.
  2. Self-Certification: They are allowed to self-certify their export documents, simplifying the export process.
  3. Exemption from Bank Guarantee: Status Holders are exempt from the requirement of furnishing a bank guarantee under certain schemes.
  4. Market Access Initiative Scheme: They are eligible for assistance under the Market Access Initiative (MAI) scheme, which helps in market promotion activities.
  5. Promotional Support: Status Holders receive support for participating in international trade fairs and exhibitions.
  6. Faster Approvals: Faster approvals for various licenses, certificates, and permissions required for export activities.
  7. Recognition and Credibility: Enhanced recognition and credibility in the international market, which can lead to increased business opportunities.

Conclusion

The Star Export House/Status Holder Certificate is a vital recognition for exporters in India, providing them with various benefits and incentives to enhance their export performance. By meeting the eligibility criteria and maintaining compliance with regulatory guidelines, exporters can achieve and retain this status, significantly boosting their competitiveness in the global market. The process of obtaining and re-validating the certificate is streamlined through the DGFT portal, ensuring that exporters can easily manage their status and leverage the associated benefits for their business growth.

By understanding the eligibility requirements, application process, and benefits, exporters can effectively utilize the Status Holder Certificate to enhance their operational efficiency and achieve greater success in international trade.