As part of its overseas trade policy, the Indian government introduced the Star Export House Certificate, also known as the Status Holder Certificate. Business executives who have excelled in international commerce and made significant contributions to the nation's overseas trade are awarded the Certificate or Status. All exporters of technology, services, and items having an import export code are granted export house status. Based on the company's export performance in each fiscal year (FOB / FOR value), export house status is recognized.
Export House Status Holder
Business executives who have achieved success in foreign trade and made significant contributions to the nation's foreign commerce are considered status holders. It is required of Status Holders to support India's exports and offer advice and assistance to nascent enterprises.
By submitting an application for a Status Holder Certificate, the exporter may get status. A Status Holder Certificate will be given to you if your application for the desired Status House is accepted.
Obtaining an Export House Certificate
An export house certificate can be obtained by an exporter who exports goods or services. After achieving a certain minimum export performance in the last two fiscal years, an applicant would be eligible and classified.
- The FOB (Free on Board) value of export earnings in free foreign exchange serves as the basis for calculating export performance.
- When it comes to considered exports, it exchanges the Indian rupee FOR value of exports into US dollars using the Central Board of Excise and Customs' current exchange rate, which is in effect as of April 1st of every fiscal year.
Export House Status Eligibility Criteria
- As previously stated, exporters of technology, commodities, and services who have an import-export code (IEC) number are entitled to be recognized as status holders.
- Export performance will determine if a status is recognized.
- If an applicant has achieved export performance in the last three fiscal years, they will be classified as a status holder.
- The Gems & Jewelry Sector will be recognized as a status holder based on their performance in the last two fiscal years as well as the current one.
- Export performance must be maintained for at least two of the four years in order to receive status.
Export House Status Holder Categories
|
Sl.No |
Status Category |
Export Performance FOB / FOR (as converted) Value (in US $ million) |
|
1 |
One Star Export House |
3 |
|
2 |
Two-Star Export House |
25 |
|
3 |
Three-Star Export House |
100 |
|
4 |
Four Star Export House |
500 |
|
5 |
Five Star Export House |
2000 |
Criteria for receiving Double Weightage
You may be eligible for double weightage as an exporter holding an IEC if you satisfy any one of the following requirements:
- The MSME/SSI Certificate is yours.
- You have production facilities that follow ISO/BIS guidelines.
- Sikkim, Jammu & Kashmir, and other northeastern states are home to your corporate units.
- The locations of your business units are in the Agri Export Zones.
- By the way, the One Star Export House Status category is the only one for which double weightage is granted.
Conditions for Grant of Export House Status
Furthermore, it prohibits the conversion of an IE Code holder's export performance to that of another IE Code holder. Moreover, SCOMET items, exports done on a re-export basis, and authorized exports would not be taken into account when calculating export performance.
Star Export House Benefits
A Status Holder is entitled to the benefits outlined in the Foreign Trade Policy. After being named a star export firm, the exporter is eligible for a number of advantages and rewards, including:
- On a self-declaration basis, import and export authorization and customs clearance may be granted.
- Except as otherwise noted, exemption from providing a bank guarantee for schemes under the Foreign Trade Promotion Act.
- Within 60 days, the Norms Committee may prioritize fixing input-output norms.
- exemption from the requirement to negotiate documents with banks. However, receipts or remittances ought to be obtained via financial channels.
- According to Department of Revenue criteria, export houses that are rated two stars or above are allowed to open export warehouses.
- As per the standards set forth by the Central Board of Excise and Customs, export houses that have three stars or more are eligible to get benefits from the Accredited Clients Programme.
- When managing consignments, status holders would be entitled to priority and preferred treatment by the relevant agencies.
- Status holders can export freely exportable goods for free in order to promote exports, up to an annual cap of Rs. 10 lakhs or 2% of the average yearly export realization over the three license years prior, whichever is larger.
- Manufacturers who export their products have the option to self-certify that they come from India.
Pre-requisites to avail benefits under Status Holder Certificate
To avail of benefits under a Status holder certificate, the following is required:
- The DGFT user profile must be linked with an IEC
- A valid DSC must be registered in the system
Documents Required for Status Holder Certificate
The following documents are mandatory for submission of the application:
- Double Weightage claims on export certificates (applicable only if the application is for a One Star Export House)
- Earned Certificate of Foreign Exchange through Service Provision
- Certificate of FOR value of Deemed Exports: Exports from units in SEZs, EOUs, EHTPs, STPs, and BTPs that are included in the IEC and used to determine the status grant are annexed to ANF 3C.
How SKMC Global can assist in acquiring Status Holder Certificate
Exporters who fulfill certain requirements are granted accreditation by the Directorate General of Foreign Trade (DGFT) in India through the Star Export House certification. Companies benefit from this accreditation since it streamlines export processes and offers a number of advantages. As a service provider, SKMC Global is essential in assisting businesses in obtaining and preserving this certification. Here's how we get involved:
Eligibility Assessment:
We begin by determining if the business satisfies the conditions for the Star Export House certification, which include export performance, financial stability, and regulatory compliance. Before applying for certification, do a preliminary assessment to find any holes or areas that require repair.
Application Preparation:
Help collect and prepare the paperwork needed for the application, including financial statements, compliance certificates, and export performance records. Assist in filling out and submitting the Star Export House certification application, making sure it is accurate and comprehensive.
Regulatory Compliance:
Give advice on how to meet the rules and requirements established by the DGFT in order to be certified as a Star Export House. Make sure that all necessary paperwork is created in compliance with DGFT regulations. Oversee the DGFT's filing procedure, which includes submitting the application and following up with the relevant authorities. Respond to any questions or requests for more information about the application from the DGFT. Help with the certification renewal process, including on-time submission of applications and compliance paperwork. Assure continuous compliance with the requirements and rules in order to keep your accreditation.
Privileges and Benefits:
Provide guidance on maximizing the advantages of the Star Export House designation, including less regulatory requirements, improved export incentives, and expedited export processes. assistance in making use of the certification's benefits, such as quicker customs clearance and simpler access to export incentives.
Updates:
We notify the business of any modifications to the rules or requirements pertaining to the Star Export House certification. Provide guidance on how to adjust to new rules or modifications to the certification procedure. Review certification standards compliance and pinpoint opportunities for improvement by conducting internal audits. In the event that audits or evaluations reveal any compliance concerns, assist in putting corrective measures into place.
Support During Inspections:
Help with organizing and supervising any inspections or assessments that the DGFT or other authorities carry out as a requirement of the certification procedure. Address any concerns or inspection-related findings and make sure they are resolved quickly.
Your organization and business can more successfully manage the challenges of getting and retaining Star Export House accreditation by utilizing the experience of SKMC Global. This will ensure compliance with standards and maximize the benefits connected with the certification.
Note: In the event that the applicant selects "gems and jewelry," just two of the four years' worth of export performance—or three of the four years' worth—must be included in the IEC profile.
- Choosing the status holder data and channeling the items according to the categories. The Export House Certificate/Status Holder falls into five categories. The weights are used to divide the categories.
- Goods supplied to SEZs plus supplies to EOUs, BHPs, EHTPs, EHTPs, and STPIs will be exported to SEZs, EOUs, EHTOs, STPs, and BTPs.
- Declaring submission with an Aadhar card or Digital Token.
- You have the following choices for how to proceed with signing:
- Aadhaar e-Sign
- Digital Signature Certificate.
To Check the Status of Submitted Applications
- Under My Dashboard—Submitted Applications, applicants can view the status of their submitted applications.
Print the Status Holder Certificate
- The "Status Certificate" option under Certificate Management can be printed by applicants.