Star Export House Certification

Star Export House Certification

What is Star Export House Status?

Star Export House is a status recognition granted by the Directorate General of Foreign Trade (DGFT) to exporters who have achieved a specified level of export performance over the preceding 3 financial years. There are five tiers: One Star, Two Star, Three Star, Four Star, and Five Star Export House. This recognition gives exporters significant competitive and administrative benefits in their trade operations.

As per para 1.25 / 1.26 of Export / Import Policy Merchant / manufacture Exporter, Service Provider, EOU, EHTP, STP are eligible for Status Certificate subject to achieving min export performance as follows:

Privileges of Status Holders:

A Status Holder shall be eligible for privileges as under:

Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis;

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

Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise anywhere in FTP or HBP;

Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels;

Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.

The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.

Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) 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). Subsequently, the scheme may be extended to remaining Status Holders. Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per Para 2.93 (e) of Hand Book of Procedures.

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. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of the average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.

The status holders shall be eligible for the following new / Special facilities: -

Licence / certificate / permissions and Customs clearance for both imports and exports on self-declaration basis.

Fixation of Input - Output norms on priority.

Priority Finance for medium and long-term capital requirement as per conditions notified by RBI.

Exemption from compulsory negotiation of documents through bank. The remittance, however, would continue to be received through banking channels.

100% retention of foreign exchange in EEFC account.