Status Holder Certificate: Meaning, Benefits, and Amendments
- Commercial Consultancy Counsel
- Oct 31, 2023
- 6 min read
Updated: Nov 28, 2024
In the intricate web of global commerce, India's export industry stands as a resolute colossus, fueled by the convergence of two essential pillars – Export Houses and the prestigious Status Holder Certificate.
Together, they constitute the very heartbeat of the nation's export endeavors, weaving a narrative of success and excellence in the global marketplace.
India's export prowess is more than just a story of products crossing borders; it's a testament to the relentless pursuit of quality and innovation.
These two pillars are the cornerstones that elevate India's global standing as an indomitable force in international trade.
They are not just symbols but the driving force behind the nation's ascendancy on the world stage.
In this blog, we will dive deep into the details of Export Houses and the Status Holder Certificate, covering their significance and benefits while also covering various important details on obtaining a Status Holder Certificate and its eligibility.
To help businesses navigate the complicated world of Customs, especially Export House regulations and Status Holder Certificate procedures, we at Commercial Consultancy Counsel provide in-depth assistance and guidance through our team of highly experienced Customs Consultants.
What is an Export House?
What is a "Status Holder Certificate"?
Who is a Status Holder?
Who is eligible for the Status Holder Certificate?
What obligations are to be maintained after getting the Star Export House Certifcate?
What are the benefits of Status Holder Certifcate?
What are the prerequisites to applying for the Status Holder Certificate?
Where can I view my approved Status Holder Certificate?
But what is an Export House in the world of Customs?
Read along to our next section to find out!
1. What is an Export House?
In India, an Export House is a business entity or company that is recognized and certified by the government as an exporter of goods and services.
They play a crucial role in promoting and facilitating international trade.
Export Houses are primarily engaged in exporting goods and services to foreign markets.
They help promote and market Indian products and services globally, contributing to the country's export growth.
To be classified as an Export House, a company must meet certain eligibility criteria and apply for recognition from the Directorate General of Foreign Trade (DGFT).
Export Houses play a huge role in India's export industry and it's one of the reasons why India has various export promotion schemes to motivate exporting entities to further contribute to India's import and export efforts.
The Status Holder Certificate is a token of excellence awarded to exporting entities for their contribution to India's export initiatives.
Let's learn about this certificate further in our next section.
2. What is a ‘Status Holder Certificate’?
The Status Holder Certificate is a prestigious acknowledgment bestowed by the Indian government to exporters who have demonstrated a consistent and successful history of engaging in international trade.
This recognition is a testament to their commitment and contribution to the country's export industry.
The certificate comes with a range of privileges and benefits aimed at incentivizing and streamlining export activities.
And an exporting entity who is awarded a Status Holder certificate is known as a Status Holder.
Looking to get some assistance in your journey to obtain the Status Holder Certifcate?
Let us help you out with that:
Let's dive deep into Status Holder and how an exporting entity can become one.
3. Who is a Status Holder and how can one become one?
Any exporting firm/ company may enjoy the privileges of being a Status Holder by grant of a Status Holder Certification.
All exporters of goods, services, and technology having an import-export code (IEC) number shall be eligible for recognition as a Status Holder.
But how does someone become eligible for a Status Holder Certificate?
Are there certain criteria for this?
Our next section answers these questions in detail.
4. Who is eligible for the Status Holder Certificate?
Status recognition depends on the export performance.
An exporter shall be categorized as a Status Holder on achieving export performance during the current and previous three financial years.
For Gems and jewelry Sector, the performance during the current and previous two financial years shall be considered for recognition as status holder.
For granting status, export performance is necessary in all three preceding financial years.
There are five categories of Status Holders based on the export performance threshold:
Status House Category | FTP (2015- 20) (extended up to 31.03.2023) Export Performance (USD Million) Threshold | FTP 2023 Export performance (USD Million) Threshold |
One Star | 3 | 3 |
Two Star | 25 | 15 |
Three Star | 100 | 50 |
Four Star | 500 | 200 |
Five Star | 2000 | 800 |
After meeting the necessary export performance criteria, your export entity is awarded a Status Holder Certificate.
Our team of expert consultants at Commercial Consultancy Counsel can guide your business towards meeting your export performance goals seamlessly.
But the story doesn't end there!
After receiving the Status Holder Certificate (also known as the Star Export House Certificate), there are various obligations that need to be maintained as well.
Let's have a look at those obligations in the next section.
5. What are the obligations to be maintained after getting the Star export house certificate?
Status Holders shall endeavor to provide skilling and mentorship training in international trade so as to improve the trade ecosystem.
A model training program of a minimum duration of six weeks should be put up in the public domain for guidance along with the detailed eligibility requirements, selection criteria, and training curriculum.
But the Status Holder Certificate isn't just a document of excellence.
It brings with it various benefits that can streamline the export activities of exporting entities significantly.
And we have covered those benefits in the next section.
6. What are the benefits of a status-holder certificate?
The Status Holder Certification is essential for exporters as it grants numerous privileges, namely:
Authorization and customs clearances for both imports and exports may be granted on a self-declaration basis.
Two-star and above export houses shall be permitted to establish export warehouses as per Department of Revenue guidelines.
Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India.
Input-Output norms may be fixed on priority within 60 days by the Norms Committee
Exemption from compulsory negotiation of documents through banks.
The Status Holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.
Let our team of highly experienced consultants at Commercial Consultancy Counsel help you avail the benefits of the Status Holder Certifcate that's right for your business.
Apart from meeting and exceeding export performance criterias, there are several other prerequisites to obtaining your Status Holder Certificate.
Read along to our next section to learn more about those prequisites.
7. What are the prerequisites for applying for the Status Holder Certificate?
Previously, exporters were required to file an online application for the grant of Certification.
However as per the recent public notice and trade notice dated 9th October, 2023 issued by the Ministry of Commerce and Industry, the Director General of Foreign Trade (DGFT) in the interest of ease of doing business, e-Governance and trade facilitation, the Government has allowed the recognition and grant of system generated electronic Status Holder Certification (e-SHC).
This e-SHC shall be granted based on the export data available in the Directorate General of Commercial Intelligence and Statistics database, without the need for filing an application.
The exporters will be divided into the five categories of Status Holders based on the export figures from Electronic Data Interchange (EDI) ports, non-EDI ports and Special Economic Zones (SEZ) ports as per the eligibility threshold given under the FTP 2023.
Therefore, with regard to the above amendment in the FTP 2023, exporters at present are not required to file any online application and the e-SHC for a particular status category will be generated automatically.
Once you obtain your e-SHC, it's very important to check its status to ensure its active and doesn't warrant any further regulatory action.
Our next section shows you how can you check the status of your Status Holder Certificate online.
8. Where can I view my approved Status Holder Certificate?
The e-SHC will be generated for the exporting entity on their respective DGFT portal by 15th August each year.
Furthermore, all already filed/in process applications will be auto issued after the scrutiny of the export data.
Commercial Consultancy Counsel can streamline your e-SHC application and retrieval process signifcantly.
Want to learn how?
9. Conclusion
In the realm of international commerce, India has carved a niche for itself, thanks to the contributions of Export Houses and Status Holders.
The Export Houses serve as torchbearers, relentlessly promoting Indian goods and services on the global stage.
Meanwhile, Status Holders are the embodiment of consistency and excellence in the export sector.
The Status Holder Certificate bestows upon them a range of privileges, from simplified customs clearances to priority handling of consignments to reward their relentless drive to contribute India's export efforts.
With recent developments making the application process more streamlined, this recognition is more accessible than ever.
As India continues to expand its horizons in international trade, these components remain at the forefront, signifying the nation's commitment to fostering export growth, excellence, and global influence.
And Commercial Consultancy Counsel is here to assist import export businesses who want to make an impact.
From DGFT Consultancy Services to Certification Assistance for various export certifications like Import Export Code (IEC) and Registration-cum-Membership Certification (RCMC), our team of exper consultants are at your service.
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