FOREIGN TRADE POLICY ANALYSIS:

Chapter 3 Status Holder

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3.20
(Stat
us
Holde
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New Provision

Comments / Impact

(a) Status Holders are business

leaders who have excelled in
international trade and
have
successfully
contributed
to
countrys foreign trade. Status
Holders are expected to not
only contribute towards Indias
exports
but
also
provide
guidance and handholding
to
(b) All exporters of goods,
services
and
technology
having
an import-export
code (IEC) number shall be
eligible for recognition as a
status holder. Status recognition
depends
upon
export performance.
An
applicant
shall
be
categorized
as status
holder
upon
achieving export performance
during current and previous two
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Status holder is first time defined under Foreign Trade

Policy.

Now exporters can categorized as a status holder

after achieving export performance during current and
previous two fnancial years, earlier it was for current
and previous three financial years.

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value of export earnings in free

foreign exchange.
(c) For deemed export, FOR
value of exports in Indian
Rupees shall be converted in
US$ at the exchange rate
notifed by CBEC, as applicable
on 1st April of each Financial
Year.
(d) For granting status,

Even in case if Deemed Exports the criteria for export

performance for recognition of status holder have been
changed from Rupees to US dollar earnings.

Earlier export performance is required in at least two

export
performance
is out of four years.
necessary in at least two out of
three years.

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3.21
(Status
Catego
ry)

Status
Category

One Star
Export House
Two Star
Export House
Three

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Comments / Impact

3.22
Grant of
double
weighta
ge

Export
Performance
FOB/ FOR
(as
converted)
Value (in US
$
3 million)

The nomenclature of Export House, Star Export House,

Trading House, Star Trading House, Premier Trading
House certificate has been changed to One, Two, Three,
Four, Five Star Export House.
Though eligibility has been changed from INR to USD
equivalent amount has been increased as compared to
earlier policy

25
100

Star
Four Export
Star
500
Export House
Five Star
2000
Export House
(a) The exports by IEC holders Criteria for grant of double weightage for grant of
under the following categories status has been changed.
shall
be
granted double
weightage for calculation of
export
performance
for
grant of status.

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i) Micro, Small & Medium

Enterprises (MSME) as defined
in Micro, Small & Medium
Enterprises Development
(MSMED) Act 2006.
(ii) Manufacturing units having
ISO/BIS. (iii) Units located in
North Eastern States including
Sikkim and Jammu & Kashmir.
(b) Double Weightage shall be
available for grant of One Star
Export House Status category
only. Such benefit of double
weightage shall not be
admissible for grant of status
recognition of other categories
namely Two Star Export House,
Three Star Export House, Four
Star export House and Five Star
Export House.
(c) A shipment can get double
weightage only once in any one
of above categories.
3.23
(a) Export performance of one
Othe
IEC holder shall not be
r
permitted to be transferred to
conditions another IEC holder. Hence,
for grant
calculation of exports
of status
performance based on
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Comments / Impact

Similar provision.

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not be allowed.

3.24
Privilege
s of
Status
Holders

(b) Exports made on re-export

basis shall not be counted for
recognition.
(c) Export of items under
authorization, including SCOMET
items, would be included for
calculation of export
performance.
A Status Holder shall be
eligible for privileges as
under:
(a) Authorisation and Customs
Clearances for both imports and
exports may be granted on selfdeclaration basis;
(b) Input-Output norms may be
fixed on priority within 60 days
by the Norms Committee;
(c) Exemption from furnishing of
Bank Guarantee for Schemes
under FTP, unless specifed
otherwise anywhere in FTP or
HBP;
(d) Exemption from compulsory
negotiation of documents
through banks. Remittance /
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Now even exports made under authorization

including SCOMET items can be included for
calculation of export performance.
Now Manufacturers who are also Status Holders will be
enabled to self certify their manufactured goods as
originating from India with a view to qualify for
preferential treatment under diferent Preferential Trading
Agreements [PTAs], Free Trade Agreements [FTAs],
Comprehensive Economic Cooperation Agreements
[CECAs] and Comprehensive Economic Partnerships
Agreements [CEPAs] which are in operation.
They shall be permitted to self-certify the goods as
manufactured as per their Industrial Entrepreneur
Memorandum (IEM) / Industrial Licence (IL)/ Letter of Intent
(LOI).

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channels;
(e) Two star and above Export
houses shall be permitted to
establish Export Warehouses
as per Department of Revenue
guidelines.
(f) Three Star and above Export
House shall be entitled to get
benefit of Accredited Clients
Programme (ACP) as per the
guidelines of CBEC (website:
http://cbec.gov.in).
(g) The status holders would be
entitled to preferential treatment
and priority in handling of their
consignments by the concerned
agencies.
(h) 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 diferent
preferential trading agreements
(PTA), Free Trade Agreements
(FTAs), Comprehensive
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HBoP- 3.19
(Applicat
ion for
grant of
Status
Certificat
e)

New Provision

Comments / Impact

Subsequently, the scheme may

be extended to remaining Status
Holders. (i) Manufacturer
exporters who are also Status
Holders shall be eligible to selfcertify their goods as originating
from India as per para 2.108 (d)
of Hand Book of Procedures.
(j) Status holders shall be entitled
to export freely exportable items
on free of cost basis for export
promotion subject to an annual
limit of Rs 10 lakh or 2% of
average annual export realization
during preceding three licencing
(a) Status Certificates issued
Online application along with digital signature is made
mandatory and defining of various issuing/renewing
under FTP 2009-14 to an IEC
holder shall remain valid till 30th authorities for different categories of organisations.
June 2015 or till the issuance of
status certificate to such IEC
holder under this policy,
whichever is earlier.
(b) Applicants shall be required
to file an application online for
recognition of status under the
Policy in ANF 3C. Scanned copy
of relevant prescribed documents
shall be uploaded by the
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(c) Online Application for status

certifcate shall be filed using
digital signature with
jurisdictional RA / Development
Commissioner (DC) by
Registered Offce in the case of
Company and by Head Office in
the
case
of others as Issuing
indicated in
S.No
Category
.

1.

2.

IEC holder
having
exports of
DTA unit as
well as
exports of
SEZ/EOU
unit.
EHTP/STP/B
IEC holder
having
SEZ/EOU
unit only

/renewing
Authority
for Status
Certificat
e
Concerned
Regional
Authority
as per
jurisdictio
n
indicated
in
Appendix
Concerned
Developme
nt
Commission
er as per
jurisdiction
indicated8in

Comments / Impact

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Appendix 1A
3.

HBoP- 3.20
(Applicat
ion for
grant of
Status
Certificat
e)

HBoP- 3.21
(Maintena
nce of
accounts)

Comments / Impact

IEC
holder
having
DTA unit
only

Concerned
Regional
Authority
as per
jurisdictio
n
indicated
in
(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.
(b) Status Certifcates valid
beyond 31.3.2020 shall
continue to remain in force, in
case provisions of subsequent
Foreign Trade Policy continue to
Status Holders shall maintain
true and proper accounts of its
exports and imports based on
which such recognition has
been granted.
Records shall be maintained for a
period of two years from the date
of grant of status certificate.
9

As per existing policy New status certificate shall be

valid from 1-April of the year during which application
was filed. Now the status certifcate is valid for period
of 5 years from the date of application

Requirement of maintenance of records is reduced

to two years from three years.

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be made available for

inspection to RA concerned or
any Authority nominated by
DGFT.
HBoP3.22
Status Certifcate may be
(Refusal
refused / suspended/ cancelled
/Suspensi by RA concerned, if status
on /
holder or authorized
Cancellati representative acting on his
on of
behalf:
Certificate (a) Fails to discharge export
)
obligation imposed;
(b) Tampers with Authorisations;
(c) Misrepresents or has been a
party to any corrupt or
fraudulent practice in obtaining
any Authorisation;
(d) Commits a breach of 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 this Directorate.
A
HBoP- 3.23
Anreasonable
applicant, opportunity
who is not shall
3
(Appe
satisfied with decision taken to
al)
suspend or cancel Status
Certifcate, may file an appeal10
to

Comments / Impact

Similar Provision

Similar provision.

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DGFT within 45 days. Decision

of DGFT shall be final and
binding thereon.

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