Govt eases norms for exporters to get 'One Star Export House' status

The government relaxed the 'One Star Export House' eligibility condition for exporters by revising the specific international trade and financial performance norms in three consecutive fiscal years

The government on Friday relaxed the 'One Star Export House' eligibility condition for exporters by revising the specific international trade and financial performance norms in three consecutive fiscal years.

Earlier, exporters were required to achieve specific export performance in all three preceding financial years to receive the 'Star Export House' status. Under the revised norms, export firms reporting the same in any two of the three preceding fiscals will be eligible to get this recognition.

This change, however, does not apply to the gems and jewellery sector as that sector already has a separate two-year requirement under foreign trade policy (FTP) 2023.

 

The directorate general of foreign trade (DGFT) has amended a provision of the FTP "to allow granting of One Star Export House status to applicants (other than for the Gems and Jewellery sector) who possess export performance in any two out of the three preceding financial years subject to other provisions...".

Upon achieving prescribed export performance, recognition as one star export house, two star export house, three star export house, four star export house and five star export house is accorded to the eligible applicants by DGFT, as per their export performance.

Such status holders are eligible for various non-fiscal privileges such as customs clearances for both imports and exports on a self-declaration basis.

In a separate trade notice, DGFT said that it has introduced an automated facility for grant of export obligation extension in respect of Advance Authorisation and Export Promotion Capital Goods (EPCG) Authorisation cases considered by PRC (policy relaxation committee)/EPCG Committee.

These committees are key decision-making bodies of the DGFT. They examine exporters' requests for relief, policy relaxations and extensions in cases where strict trade policy provisions cause genuine hardship.