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According to the Foreign Trade Policy, Indian exporters of goods and services are assigned status holder positions based on their export performance.
You can be a status holder if you have risen to the top of your industry and have a proven track record in international trade. You must have contributed significantly to India's overseas trade. You must also commit to assist aspiring Indian businesses in order to strengthen India's exportrelated industry.
To be recognised as a "status holder exporter," an exporter must meet the following criteria:
The valid Import – Export Code must be provided by the applicant for the Star Export House grant (IEC).
The certificate is provided based on the exporters' achievement of a specified level of export performance.
The applicant can be recognised as a status holder in one of five categories, ranging from One Star Export House to Five Star Export House. The FOB/FOR value of their export performance should be $3 million, $25 million, $100 million, $500 million, and $2000 million, respectively.
An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems& Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy.
For granting status, export performance is necessary in at least two out of four years.
A) Annual limit of 2% of average annual export realization during preceding three licensing years for all exporters (excluding the exporters of following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).
B) Annual limit of Rupees One Crore or 2% of average annual export realization during preceding three licensing years, whichever is lower. (for exporters of the following sectors-(1) Gems and Jewellery Sector, (2) Articles of Gold and precious metals sector).
C) In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHOPAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years.
The free of cost supplies made under provisions of Para 3.24(j) shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme.vi
Compulsory negotiation exempted export documentation from going through banks, and entitled import-export consignments to preferential treatment and priority.
Only one-star export houses meet the criterion for earning double weighting. This does not apply to other groups of status holders.
An exporter who meets any of the following requirements is eligible for double weightage:
By the way, the issuance of double weightage is limited to the One Star Export House Status category.
(a) Status Certificates issued under this FTP shall be valid for a period of 5 years from the date on which application for recognition was filed or 30.09.2021, whichever is later.
(b) Status Certificates valid beyond 31.3.2020 shall continue to remain in force, in case provisions of subsequent Foreign Trade Policy continue to recognize the status.
The current year's export performance, as well as the previous three years', will be calculated; it will be counted based on FOB value of export earnings in free foreign exchange, with deemed exports also being counted based on FOR value. Earnings in rupees will be converted into US dollars at the CBEC (Central Board of Excise and Customs) rate in effect on April 1st of each fiscal year.
You cannot transfer or get your export performance from another IEC holder. Hence, calculation of exports performance based on disclaimer shall not be allowed. Re-export basis exports shall not be counted for recognition. However, products connected to Special Chemicals, Organisms, Materials, Equipment, and Technologies (SCOMET) as well as other things under Authorisation do count toward determining your export performance.
A status certificate may be refused/suspended/cancelled by the RA concerned if the status holder or an authorised representative acting on his behalf: (a) fails to fulfil the export obligation; (b) tampers with Authorisations; (c) misrepresents or has been a party to any corrupt or fraudulent practise in obtaining any Authorisation; (d) commits a breech of the FT(D&R) Act, or Rules, Orders made there under and FTP, The Customs Act 1962, The Central Excise Act 1944, FEMA Act 1999 and COFEPOSA Act 1974; or (e) fails to furnish information required by the Directorate.
Before taking any action, the Status Holder must be given a reasonable opportunity.
At Enrich Services What We Do
Enrich Services will also help you with Consultation for Status House Certificate, The certification issues under Foreign Trade Policy to an IEC holder. Applicants will have to register online for the status house certificate. Our professional experts will be giving you the guidelines and providing you with the pathway for the submission of the scanned prescribed documents, digital signature followed by jurisdictional RA/Development Commissioner (DC) by Registered Office in the case of Company and by Head Office. From appealing to the validity of the status certificate, we commence right from the scratch.