The Export House Certificate, also known as the Status Holder Certificate, is conferred on exporters by the Government of India on the basis of their performance in export business. This prestigious certification affirms that they have made an invaluable contribution to the nation’s foreign trade industry. Apart from introducing recognition of their greatest achievements, it also provides lots of opportunities designed to improve efficiency, credibility, and competitiveness in the global market. These benefits include decorative clearance through customs, presence within export promotion initiatives, and exclusion from some conditions, as well as having a higher position within global B2B networks.
Table Of Content
What is Export House Certificate?
The Export House Certificate is one of the prestigious certificates issued by the directorate general of foreign trade of India to exporters for their valuable contribution in the foreign trade of the country. Normally known as a Status Holder Certificate, it is issued depending on the exporter’s record of stability within the worldwide trading system. Export houses are classified in terms of export turnover, categorized in order: one star, two stars, three stars, four stars, and five stars. This certificate includes many privileges that will enable importers to avail priority customs clearance, some special immunities related to bank guarantees, and some export schemes that are funded by the government. It improves the standing of the exporter, productivity, and competitiveness in the international market, making it a valuable tool of trade.
Benefits of Export House Certificate
The Export House Certificate offers numerous benefits to exporters, enhancing their global competitiveness and operational efficiency. Key benefits include:
- Customs Clearance Priority: The status holders get preferred clearance of export goods, thereby enabling proper and fast clearance of the consignment.
- Exemption from Bank Guarantees: They are immune to the provision of bank guarantee for some export commitments.
- Access to Export Promotion Schemes: Exporters come across numerous governmental opportunities like Advance Authorization and EPCG (Export Promotion Capital Goods).
- Self-Certification for Quality: Self-certification can be included for products, through which status holders can directly provide certification to quality products without third-party inspections.
- Recognition in Global Markets: The certificate increases trust and credibility of the exporter in the international markets.
Categories of Status Holders
The Export House Certificate is categorized based on export performance measured in terms of Free on Board (FOB) value. The categories are:
- One Star Export House: Achieved by exporters with a minimum FOB value of ?24 crore.
- Two Star Export House: Awarded to exporters with a minimum FOB value of ?200 crore.
- Three Star Export House: Granted to exporters with a minimum FOB value of ?800 crore.
- Four Star Export House: Assigned to exporters attaining a minimum FOB value of ?4,000 crore.
- Five Star Export House: The highest recognition for exporters with a minimum FOB value of ?16,000 crore.
Fee Charges for Export House Certificate
There is no application fee for acquiring an Export House Certificate. Yet, there are some costs you may have to meet, including the cost of preparing the documents, attorney fees, and other administrative expenses.
Note:- Professional fees for the Export House Certificate is ?5,000 only with Professional Utilities.
Validity of Export House Certificate
The Export House Certificate or the Status Holder Certificate is as valid as 5 years from the date of grant or till the Foreign Trade Policy is valid. The certificate cannot be renewed, but a new certificate can be applied for.
Conclusion
The Export House Certificate, or the Status Holder Certificate, as it is officially called, is a certificate that is issued to the exporters by the Directorate General of Foreign Trade (DGFT), provided the exporter has a commendable record of exporting goods. Divided into one to five stars according to recommendations of export turnover, the primary advantages include fast customs clearance, exclusion from bank guarantees, export stimulation programs, and ranking among the world's top exporters. This certificate is valid for five years, which boosts the exporter’s credentials and competitiveness. Since there is no application fee for this visa, it is quite beneficial for the industries that want to perform well in the international sector and also play a prominent role in the country’s foreign exchange business.
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Frequently Asked Questions
How to get an export house certificate?
Through online application on the DGFT portal, upload necessary documents (IEC, RCMC, CA certificate), select the category, sign digitally, and accept conditions to submit the application electronically.
What is the validity of an export house certificate?
The certificate is valid for five years from the date of issue or until the Foreign Trade Policy (FTP) is in operation, whichever comes first. Renewal is not possible, but it is possible to reapply it.
How long is the Export House Certificate valid?
The certification for the Export House is for 5 years from the date of issue or till date when there is an amendment in the Foreign Trade policy.
Who is eligible for the Export House Certificate?
Exporters that can demonstrate future balance and export stability are allowed. Only companies that export a certain amount of products can fall under such categories as One Star, Two Star and so on.
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