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EXPORT HOUSE CERTIFICATE

Export house certificate also termed as Status Holder Certificate is one of the recognition schemes under the foreign trade policy of India administered by DGFT, Ministry of Commerce and Industry, Government of India.

It is conferred to the Exporters with outstanding performance in exporting goods, services and technology and contributing significantly to India’s foreign trade.

Objectives of the scheme:
  • ○ To encourage and promote Exporters
  • ○ To enhance export performance
  • ○ To provide administrative and operational privileges in trading.

CATEGORIES:

Export houses are categorized based on the Export turnover and free on board (FOB) value.

Category of Export house Minimum FOB value in US $ million Skilling & mentorship obligation (number of trainees per year)
One-star Export house 3
Two-star Export house 25 5
Three-star Export house 100 10
Four-star Export house 500 20
Five-star Export house 2000 50

Skilling and mentorship programme details:

To enhance the training and mentoring programs to amplify the skill in trade ecosystem for a period of 6weeks every year and the annual status report with registers / records with number of trainees attended as mentioned in the column 3 of the above table, topics covered, training period along with dates and trainee signature and locations are maintained

APPLICATION:

Mode of application: Automatic issuance except for services exports, deemed exports and double weightage cases need to apply online.

Documents required: IEC, RCMC, CA & Digital signature certificate.

Application charges: Free of cost

Validity: 5years

Mode of Renewal: No renewal/amendments, if needed can raise a new application

Refusal/ Suspension/ cancellation of certificate: under the following conditions

  • ○ Non fulfilment of export obligation
  • ○ Engaged with unauthorized alterations of authorization
  • ○ Failed to submit mandated information by the directorate
  • ○ Violates FT act under FTP, The Customs Act 1962, The Central Excise act 1944, Foreign exchange Management act 1999, and Conservation of foreign exchange and prevention of smuggling activities act 1974.

Grant of Double weightage:

  • ○ Applicable only to one star Export house
  • ○ MSME category export holders with IEC can get this grant as per MSMED act 2006.
  • ○ Manufacturing units having Indian standard operations and Bureau of investigational system certificates are also eligible to this grant.
  • ○ Manufacturing units located in Agri zones and also in North eastern states including Sikkim and Jammu and Kashmir are eligible.
  • ○ Export of items under advance authorization, including SCOMET items are included for export performance calculation and grant of the status.
  • ○ Re-export of the products are not considered for the export performance.
  • ○ Export performance of an IEC holder cannot be transferred for other IEC holder.

BENEFITS:

  • ○ Customs Clearance Priority
  • ○ Exemption from Bank Guarantees
  • ○ Access to Export Promotion scheme
  • ○ Self-certification for quality
  • ○ Recognition in International market
  • ○ Establishment of warehouses by two star and above export houses under the department of revenue guidelines
  • ○ As per CBEC guidelines three star and above export houses get benefits of Accredited Clients Programme.
  • ○ Status holders shall entitled to export
Category Annual limit on export promotion
Freely exportable items excluding gems and jewelry, articles of gold and precious stones. 1 crore or 2% of annual average export realization for preceding three years whichever is low
Export of Pharma products 2% of average annual export for preceding three years
Supply of vaccines, life saving drugs and pharma products under the WHO – PAHO, UN programs 8% of the average annual export for preceding three years
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