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System-Based 'Status Holder' Certificates to Simplify Export Recognition

  • 10 Oct 2023

On 9th October, 2023, a significant initiative to issue automatic 'Status Holder' certificates under the Foreign Trade Policy (FTP) 2023 was launched, simplifying the process for exporters.

Key Points

  • Automated 'Status Holder' Certificates: Exporters will no longer need to apply to the Directorate General of Foreign Trade (DGFT) for a Status Certificate.
  • The IT system will grant export recognition based on available Directorate General of Commercial Intelligence and Statistics (DGCIS) merchandise export electronic data and risk parameters.
  • This initiative aims to reduce compliance burdens, promote ease of doing business, and encourage inter-government collaboration.
  • Simplified Regime: Currently, exporters must file online applications along with a Chartered Accountant's export certificate for Status grants.
  • Under the new system, no applications will be required from exporters.
  • Certification will be automatically granted every year in August based on annual export figures available with DGCIS.
  • Modification for Higher Status: Exporters eligible for a higher status based on additional export data can apply online for Status modification.
  • This includes services exports, deemed exports, or entities like MSME not captured in disaggregated form.
  • Privileges of Status Holders: Status Holder certification enhances Indian exporters' credibility in international markets.
  • It provides benefits such as simplified procedures under FTP 2023, priority customs clearances, exemption from document negotiation through banks, and exemption from filing Bank Guarantees for FTP schemes.

Increase in Status Holders

  • The Department of Commerce will recognize approximately 20,000 exporters as Status Holders under FTP 2023, a significant increase from the previous 12,518 exporters.
  • The 1 Star category, which requires a minimum export performance of US$ 3 million in the last 3 financial years, will see the most significant growth.
  • This expansion aims to support more small exporting entities, fostering a vibrant export ecosystem to achieve the US$ 2 trillion export target by 2030.