Star Export House Certificate

The Star Export House Certificate (Status Holder) is a formal certification provided by the DGFT acknowledging an exporter’s exporting credentials. The certificate is awarded based on cumulative exporting performance and can be awarded between One Star Export House to Five-Star Export House. This certificate has been lowered significantly in the 2023 foreign trade policy. Two Star requires cumulative exports of $15 million (previously $25 million), Three Star requires cumulative exports of $50 million (previously $100 million), Four Star requires cumulative exports of $200 million (previously $500 million) and Five Star requires cumulative exports of $800 million (previously $2000 million). Status Holder Certificates are issued electronically by DGFT using the system. However, exporters may apply for Status Holder Certificate in cases of discrepancy between exporter's performance and the data on the system, or if they wish to upgrade. This certification should be actively sought as it provides customs clearance on self-declaration, relief from bank guarantees and preferential treatment. This will free up working capital and expedite shipments. SKMC Global can advise exporters on whether they are eligible, how to calculate their exporting performance, obtain the certificates and renew them.

Star Export House Certificate: Key Facts at a Glance

Legal Framework and Responsible Authorities

Status recognition is governed by the Foreign Trade Policy 2023 (Para 1.25 to 1.29) and the Handbook of Procedures under the supervision of the DGFT. It is based on the thresholds defined by the policy and calculation, record keeping, etc. (if required to apply) are specified by the Handbook. However, since Trade Notice 28/2023-24, Status recognition is done in a system driven manner. Claims are dependent on accurate recording of export data against the IEC via shipping bills and bank realization certificates. Applications, upgrades and renewals still run through the DGFT portal where the system data does not reflect the exporter's position. Recognition and its privileges are DGFT's grant; advisers support computation and documentation only.

Eligibility and Boundaries

• Any IEC holder can be recognised — merchant exporters, manufacturer exporters, service providers, EOUs and units in SEZ, EHTP, STP, BTP and agri-export zones.
• Performance is measured on FOB value of goods (FOR value for deemed exports) and foreign-exchange realisation for services, supported by generated e-BRCs.
• The qualifying window is the current and preceding three financial years, with the threshold met in at least two out of four; Gems and Jewellery is assessed on the current and preceding two years.
• Double weightage counts eligible turnover twice for One Star only — for MSMEs, North-Eastern, J&K and Ladakh units, and fruits and vegetables — and a shipment can be weighted only once.
• Re-exports do not count; exports by a different legal entity do not transfer to the applicant's IEC.
• The IEC must be active and free of denied-entity listings; status attaches to the IEC holder, not to a group or brand.

·         Two Star and above status holders are expected to endeavor to provide skill-upgradation or training in international trade, in line with FTP para 1.30.

Status Categories and Thresholds

Training programmes run for a minimum of six weeks under the policy's skilling partnership framework.

Documents and Records

Most exporters need no filing at all — the working discipline is ensuring the DGFT database correctly captures every qualifying shipment.

Recognition and Renewal Process: Step by Step

1. Calculate the performance level by adding up the FOB/FOR exports and services achieved for last 3-Current financial years.
2. Ensure that all eligible consignments have been issued an e-BRC and are reflected in DGFT Export database.
3. Automatic issue of e-BRC every year OR if there is under performance, apply manually via DGFT Portal.
4. Apply for self-declaration clearance, bank guarantee exemptions and priority benefits.
5. Monitor the validity period (5 years). Apply for renewal in a timely manner using the DGFT Portal. Monitor upgrades in category as performance increases.

Benefits and Limitations

• Self-declaration clearance: Documents are not required to clear the goods for normal cases as they are cleared on basis of self-declaration.
• Bank Guarantee Exemption: Status holders are exempted from BG/LUT requirement under FTP schemes unless specifically mentioned in any regulation. This provides actual working capital benefit to EPCG and Advance Authorisation holders.
• Priority treatment: input-output norm fixation within 60 days, preferential consignment handling and exemption from compulsory bank negotiation of documents.
• Export warehouses: Two Star and above may establish export warehouses under Department of Revenue guidelines.
• Origin self-certification: manufacturers holding Three Star and above can self-certify origin for preferential treatment under trade agreements — a direct fit with FTA advisory work on preferential claims.
• Status is earned, not permanent: it rides on measured export performance and lapses with the policy's validity.

Validity, Renewal and Continuing Compliance

The certificate runs five years from issue, or until the granting Foreign Trade Policy expires. Renewal timing matters: applications filed before expiry receive renewed validity from 1 April of the next licensing year, while late filings lose months — renewals should begin well before expiry. Upgrades happen in the annual run as performance rises; downgrades do not strip an issued certificate mid-term, but a fall in performance shows up in the next cycle's category. The continuing obligations are real: Members with two Star and higher will be expected to attempt to give training or enhancement in International Trade. The FTP shows the number of trainees for each category per annum as a guide but is not an automatic requirement to retain your status and every privilege rests on the exporter's data remaining accurate in the DGFT system. Lapsed status and stale category claims surface when privileges are exercised, so the certificate should be tracked like any other compliance asset.

Risks and Common Mistakes

• Old figures are commonly used and exporters are being misled by outdated criteria (25/100/500/2,000 million dollars before 2023).
• Shipments that have not produced a realisation certificate via e-BRC will not be counted into performance regardless of their size.
• Missing the renewal window and losing months of validity to late filing.
• Claiming double weightage for higher categories — the benefit applies to One Star only, once per shipment.
• Assuming status transfers within a group - recognition attaches to the IEC holder, not to group companies.
• Neglecting the training obligation at Two Star and above, weakening the holder's record before DGFT.

How SKMC Global Can Assist

• Computing export performance across the qualifying window against each category's threshold
• Auditing e-BRC coverage and shipping-bill data so the DGFT database reflects every qualifying shipment
• Handling applications, upgrades and renewals on the DGFT portal with the required certifications
• Mapping the privileges — self-declaration clearances, bank-guarantee exemptions, priority norms — onto the entity's scheme authorisations
• Planning skilling-programme compliance for Two Star and above holders
• Representing the exporter on DGFT queries, category disputes and renewal matters

Recognition, category determination and certificate issuance rest solely with DGFT; SKMC provides advisory, computation and documentation support.