Free Sale & Commerce Certificate - Fees, Documents & Process

Exporters must submit the following details and documents to obtain a Free Sale Certificate:

• Details of applicants
• Details of firm/company
• Digital Signature Certificate (DSC)
• FSSAI Certificate (if required)
• Import Export Code
• Details of item for such FSC is required
• Registration cum Membership Certificate
• Manufacturing License for free sale certificate
• Notarized Undertaking
• Product permission letters for the requested products
• Export Order (Purchase order from foreign buyer)
• A letter from the concerned authority-demanding certificate

Note: Your DSC must be registered on the DGFT portal to digitally sign and submit your application. To register your DSC, My Dashboard > View and Register Digital Signature Token.

The Govt fee for free sale and commerce certificate (FCS) is INR 1,000 which is needed to be paid during application on DGFT portal itself.

The aforementioned Fees is exclusive of GST.

Validity of Free Sale Certificate

The free sale and commerce certificate is valid upto the time period of 2 years from the day of its issuance.

A Free Sale Certificate (FSC) in India usually takes a few working days for standard applications, however processing timeline depends on the accuracy of the submitted documents and internal review procedures.The certificate must be renewed before its expiry date, and a fresh application for Free Sale Certificate (FSC) should be submitted at least 30 days prior to expiry. Renewal of FSC may also be required when:

• Manufacturing details change
• Export destination changes
• Importing country demands an updated FSC

Exporters often face problems due to common application mistake, including engaged in international trade, including:

• Applying under the wrong authority
• Submitting expired licenses
• Incorrect labeling
• Misconception about the validity of FSC
• Ignoring country-specific requirements

A Free Sale Certificate applies to a broad category of goods that do not come under the Drugs and Cosmetics Act but still require export documentation to enter foreign markets. From traditional Ayurvedic formulations to modern nutraceuticals and everyday consumer goods, the certificate enables Indian exporters to tap into global demand across diverse industries. Given below are the major product categories that require an FSC for export:

• Medical Devices & Equipment: Medical devices not classified under the Drugs & Cosmetics Act, including surgical instruments, diagnostic equipment, hospital supplies, dental tools, and orthopedic implants, require a product visa for lawful operations in the exporting country.
• Ayurvedic and Herbal Preparations: Herbal supplements, Ayurvedic oils, Traditional Ayurvedic medicines, natural wellness formulations, and AYUSH products also require FSC before being exported to other countries.
• Nutraceuticals and Dietary Supplements: Vitamins, minerals, protein powders, health drinks, functional foods, and food supplements that bridge nutrition and health benefits.
• Cosmetics and Personal Care Products: Skincare items, haircare products, fragrances, soaps, beauty products, and grooming essentials.
• FMCG Goods (Fast-Moving Consumer Goods): Packaged foods, beverages, household cleaning products, hygiene items, and daily-use consumer goods.
• Food Products and Beverages: Processed foods, spices, tea, coffee, packaged snacks, ready-to-eat meals, and specialty food items.
• Health and Wellness Products: Fitness supplements, organic products, essential oils, aromatherapy items, and natural health goods.
• eCommerce and Marketplace Export Products: Goods sold via Amazon Global Selling, eBay, Etsy, Walmart Marketplace, and other cross-border eCommerce platforms also require FSC.

A Free Sale and Commerce Certificate (FSC) offers numerous benefits to businesses engaged in international trade, including:

• Facilitates Export: An FSC serves as a crucial document that enables businesses to export non-restricted items across borders. It provides importing countries with the assurance that the exported products have met the necessary requirements and can be safely distributed and used within their jurisdiction.
• Reduces Trade Barriers: By presenting a free sale certificate "FSC", businesses can reduce potential barriers and streamline the import process. The certificate acts as a form of verification, assuring importing countries that the exported goods comply with relevant regulations and standards, thereby facilitating smoother trade transactions.
• Enhances Credibility and Reputation: An FSC demonstrates a business's commitment to quality and compliance. By meeting the requirements for obtaining an FSC, businesses enhance their credibility and reputation in the global marketplace. This can build trust among trading partners and increase sales potential.
• Access New Markets: Obtaining a free sale certificate can open up new market opportunities for businesses. By presenting this document, exporters can demonstrate that their products are legally and openly traded in their home country, making them more attractive to potential buyers in foreign markets.
• Ensures Compliance: An FSC provides assurance to importing countries that the exported products have met the necessary requirements and standards. This helps businesses comply with international trade regulations and avoid potential legal issues or penalties.
• Simplifies Documentation Process: A free sale certificate consolidates essential information about the exported products, including their legality, safety, and quality. This simplifies the documentation process for businesses and helps expedite customs clearance procedures.

Drugs prohibited for export under the Drugs & Cosmetics Act, 1940 are not eligible for an FSC. Products classified as drugs under the Drugs & Cosmetics Act need separate export certification from the Central Drugs Standard Control Organization (CDSCO). Regulated drugs cannot be exported using a standard Free Sale Certificate and must comply with specific CDSCO export requirements.

Any manufacturer or merchant exporter who deals in items not covered under drug and cosmetic act or falls under the preview of drug license registration is eligible for free sale certificate for their business. Merchant exporters are required to submit additional documentation from the actual manufacturer confirming that the product is legally manufactured and freely marketed in India.

Authority responsible for issuance of a Free Sale Certificate depends on the product you will export:

• Medical Devices & Equipments: For medical devices and instruments, certificate of export is issued by the Central Drugs Standard Control Organization (CDSCO), a national regulatory body responsible for overseeing medical products.
• For Other Products: For products other than medical devices and instruments, the issuing authority for Free Sale Certificates is the Directorate General of Foreign Trade (DGFT). Applications for issuance must be submitted through their regional authorities or website.
• Cosmetics: State Drugs Control Authorities or CDSCO issues FSC for cosmetic products.
• Food Products: A free sale certificate for export of food products is issued by Food Safety and Standards Authority of India - FSSAI.
• Herbal Products: State Licensing authority or AYUSH ministry issues FSC for herbal products.

• The Directorate General of Foreign Trade (DGFT) amended the application procedure for obtaining the Free Sale and Commerce Certificate vide Public Notice No. 13/2015-2020 dated 12th July 2021, simplifying regulatory compliance for exporters by removing the requirement of submitting RCMC details and declarations under revised ANF-2H and ANF-2I formats.
• All Free Sale & Commerce Certificate shall be electronically generated by the DGFT's e-Certificate Management System with QR code and 18-digit UDIN with effect from 22nd February 2021.

The Free Sale Certificate acts as an essential regulatory document that proves that the product is legally manufactured, marketed, and eligible for international trade from its country of origin. Many international markets require FSC as evidence that the product is legally manufactured and freely marketed in its country of origin.

• Export shipment rejection
• Delays at foreign customs
• Loss of international buyers
• Increased compliance scrutiny
• Financial losses and reputational damage

A Free Sale Certificate confirms that a product is freely sold in the domestic market, whereas a Certificate of Origin certifies the country in which the goods were manufactured or produced for export purposes.

To ensure hassle-free exports and smooth international product acceptance, businesses must obtain a valid Free Sale Certificate (FSC). Any inaccuracies in documentation or compliance requirements may lead to delays in export approvals or rejection by foreign authorities. Experts at Professional Utilities provide end-to-end assistance for Free Sale Certificate registration, including document preparation, application support, and regulatory compliance guidance. With Professional Utilities, businesses can simplify the certification process and strengthen their credibility in global markets.