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Overview Star Export House certificate
Making the import-export process easy and appealing for importers, exporters, and merchants is the primary goal of foreign trade policies. The Status Holder Certificate is one of several export promotion programmes. Increasing export performance is the goal of the Export House Certificate or Status Holder Certificate. According to the 2015–2020 revisions to the Foreign Trade Policy, exporters are given status holder positions based on their export performance. You can become a Star Export House if you have risen to the top of your industry and have a successful track record in global trade. You must have contributed significantly to India's international trade as well. Additionally, you must pledge to mentor aspiring Indian businesses and support their growth.
Eligibility Criteria
There are the following eligibility criteria to recognize an exporter as a “status holder exporter”:
- The Import-Export Code (IEC) is a requirement for Star Export House grant applicants.
- Depending on the exporters' achievement of a specific level of export performance, the certificate is provided.
One Star Export House through Five Star Export House are the five categories in which the applicant can receive status holder recognition. Your export performance FOB/FOR value for each of them should be $3,000,000, $15,000,000, $50,000,000, $200,000,000, and $800,000,000.
| Status House Category | Existing Export Performance Threshold (in USD Million) | Revised Export Performance Threshold (in USD Million) |
|---|---|---|
| One Star | 3 | 3 |
| Two Star | 25 | 15 |
| Three Star | 100 | 50 |
| Four Star | 500 | 200 |
| Five Star | 2000 | 800 |
Categories and the export criteria to get Status Holder Certificate
As per the image, you can see that there is no change in the criteria of One Star Export House.
Additionally to MSME entities, exporters of fruits and vegetables are now eligible for double weightage status under the Star Export House Policy. That instance, exporters of fruits and vegetables can still claim one star if their shipments in the previous three plus the current fiscal year total USD 1.5 million.
The aforementioned export performance must be attained for the current financial year as well as the prior three. As an illustration, in order to qualify for One Star Export House Certification, your total export turnover for the Current FY (i.e., April to July 2019) as well as the three prior FY (i.e., 2016–17, 2017–18, and 2018–19) must be $ 3 million.
Important Notes:
- Only those shipments whose e-BRC has been generated can have their turnover counted.
- To receive the Star Export House Certificate, export performance in at least two out of the four financial years is required.
- Re-export-based exports are not recognised by the DGFT.
- The DGFT will take into account the Free on Board (FOB) value of export earnings in free foreign exchange when evaluating export performance. The DGFT will take into consideration the FOB/FOR value of the exports after it has been converted from Indian rupees to US dollars in the instance of deemed exports, which are transactions involving products that remain in the country and are paid for either in Indian or foreign freely convertible currency. The exchange rate for this conversion will be shown.
Double weighting concept to obtain a One Star Export House Certificate:
The only export firms with one star are subject to the criterion for getting double weight. Other categories of status holders are not covered by this.
An exporter may receive double weightage benefit if they satisfy any one of the following conditions:
- Micro, Small and Medium Enterprises (MSME) as defined in
Micro, Small and Medium Enterprises Development Act, 2006 - Manufacturing units that operate as per the ISO/BIS standards,
- Business units situated in Sikkim, Jammu & Kashmir, and other northeastern states
- Business units situated in the Agri Export Zones.
Only one-time double weightage is allowed for a shipment in given categories.
For example:
Spices of export-quality were created by XYZ farms. Their yearly revenue for the current fiscal year and the three prior fiscal years was 1.5 million dollars. A one-star export house must have a minimum annual turnover of $3 million. They did, however, possess an MSME/SSI Certificate. They may be given a twofold weightage benefit in this situation. They will be given the Status Holder Certificate of One Star Export House since their 1.5 million dollar turnover will now be calculated as 3 million dollars (1.5 x 2=3) as a result of the award of twofold weightage.
Benefits
Standard Input-Output Norms (SION)
- The norms committee will, with a priority of two months, set the rules under advance authorization/EPCG licence.
Establishment of Export Warehouse
- Holders of statuses with a 2 star rating or higher may build Export Warehouses in accordance with Department of Revenue (DoR) regulations.
Export of free-of-cost samples
- Subject to the annual limit as stated and excluding gems, jewellery, gold-plated products, and precious metals, Status Holders/Star Export Houses are permitted to export freely exportable goods on a no-cost basis for export promotion purposes.
Self Certification
In order to qualify for preferential treatment under the following, holders of the Three Star, Four Star, or Five Star status (Manufacturer Exporters) would be allowed to self-certify their produced goods as coming from India (Certificate of Origin).
- Preferential trading agreements (PTA),
- Free Trade Agreements (FTAs),
- Comprehensive Economic Cooperation Agreements (CECA)
Comprehensive Economic Partnership Agreements (CEPA).
Ease in Documentation and Preferential treatment
- Export paperwork processed through banks are exempt from mandatory negotiation, and they are also entitled to preferred treatment and top priority when managing import-export shipments.
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.
Status Holder Certificate Validity:
- From the date of issuance, the Status Holder Certificate or Export House Certificate is valid for 5 years.
- Before the current validity period expires, a certificate renewal must be filed.
Required documentation for the Star Export House Certificate
| Documents required for Star Export House Certificate | Additional Documents Required for Claiming Double Weightage | |
|---|---|---|
| Self-certified copy of PAN | MSMI/SSI Certificate | |
| Self-certified copy of IEC. & Valid RCMC | valid address proof that states that your business is situated in Sikkim, Jammu & Kashmir or at any other North-eastern states | |
| Statement of Export, Certified by Chartered Accountant(CA) | Valid proof that your Business Units are situated in the Agri Export Zones | |
| CA Certificate as per Annexure to ANF 3C | ISO Certificate | |
Documents required for Star Export House certificate
The following documents (listed in the first column) are necessary for the Star Export House Certificate. You will require one of the supplementary documents from the second column in order to claim the benefit of Double Weightage and obtain one-star export house status:
Export House Certificate Application Procedure
Pre-requisites to do the Application on DGFT Portal
- IEC and DGFT Profile need to be connected.
- In order to use the system, a valid DSC token must be registered (confirm from My Dashboard > View and Register Digital Signature Token).
- It is necessary to update Export Turnover on the IEC profile on the DGFT site.
Application on DGFT Portal
- For status holders, the application process is intended to be paperless and contactless in order to provide the status.
- The importer/exporter's dashboard on the DGFT website is where the applications must be submitted.
- The application must be submitted using a digital signature certificate and the Application form ANF-3C.
- ANF 3C must have all the necessary information filled in, a chartered accountant-certified export statement, a self-certified copy of the IEC, a valid RCMC, and a pan card that needs to be scanned and uploaded online.
- Beginning on February 22, 2021, all correspondence, corrections, and clarifications as well as approval of submitted applications will be made electronically.
- The Export House Certificate cannot be submitted without paying a government charge.
- It is not necessary to submit the paper physically.
Maintenance of Accounts:-
- The export house or status holder must keep accurate records of all imports and exports for which the DGFT has issued certification.
- It must be kept up for two years after the Status certificate's issuance date.
Cancellation/Suspension of Certificate
If the status holders are discovered to be in any of the following situations, the responsible RA may cancel or suspend the status given under Star Export House. The DGFT provides them with a reasonable opportunity before they take any action.
- Fail to discharge export obligation imposed.
- Tampers with Authorisations.
- Any corrupt or fraudulant practice in obtaining any authorisation.
- Fails to furnish information required by Directorate.
- Commits a breach of FT (D & R) Act, or Rules, Orders made there under and FTP.
Renewal of Status Certificate
- The renewed certificate will be valid starting on April 1st of the next licencing year if the status holder submits the application for renewal prior to the expiration of the current certificate.
- The renewed certificate's validity will start on April 1 of the year in which the application was submitted if the Status Holder submits the request for renewal after the certificate has expired.
| Last date of validity of status certificate of the company XYZ | If filling date would be as below for renewal | Renewed certificate will have the validity from |
|---|---|---|
| 31th March 2020 | 20th Jan 2020(Before the certificate get expired) | 1st April 2021 |
| 20th April 2020(After the certificate get expired) | 1st April 2020 |
Explanation of Validity Period for Renewed Certificate
How can we help you obtain certification as a Star Export House or Status Holder?
- In India, we are the top Star Export House Consultants.
- In order to determine whether our customer is eligible to receive a certificate, we help them compile their exports from the current fiscal year as well as the previous three fiscal years.
- Prepare the application and supporting materials accordingly.
- Online application submission and coordination with DGFT are required until the Status Holder Certificate is issued.
- assisting clients in utilising the various benefits offered to Star Export House Holders.
Frequently Asked Questions
An IEC holder having a valid export house certificate issued by DGFT is known as Export house.
Indian exporters with a strong track record in foreign commerce and who have successfully met a predetermined minimum level of export performance in two out of three fiscal years are known as Status Holder Certificate or Export House holders.
For recognized star export house applicant must have registered office with a valid IEC and have good export performance.
The applicant must have a valid IEC number in order to receive a Status Holder Certificate. According to the most recent revision, the applicant should have demonstrated export performance over the last three financial years and the current one.
The export performance for the current year and the three years prior to that will be calculated; it will be based on the FOB value of export earnings in free foreign exchange, and deemed exports based on FOR value will also be counted. Earnings in rupees must be converted into US dollars at the CBEC's (Central Board of Excise & Customs) announced rate in effect on the first April of the fiscal year.
Following supplies can be considered as export performance:
- Export of Physical Goods, Including Supplies to SEZ Units.
- Service exports
- Supplies to EOUs, EHTPs, STPs, BTPs, etc. are deemed exports.
- EOU, SEZ, EHTP, BTP, and STP exports, if clubbing is desired
Warehouse construction is permitted up to and including a two-star export house certificate in accordance with Revenue Department norms.
- Holders of a Star Export House Certificate are required to keep accurate and truthful records of all imports and exports through which the certification has been awarded.
- Records must be kept for a minimum of two years after the status certificate was granted. These facts must be made available to the concerned RA or any other authority designated by the DGFT for inspection.
There is no Government fee required for Star Export House Certificate.
The Star Export House Certificate is issued by DGFT in 20 to 25 working days. Our team at Afleo works separately to coordinate with the DGFT and regularly follows up with them about the issuing of certificates and licences.
Before the current Status Holder Certificate expires, a new Status Holder Certificate may be issued.
Yes, We do help in the renewal of the status holder Certificate.