DGFT Issues Procedure for Automated Process for Status Holder Certificate Issuance without Exporter Application Requirement [Read Notice]

The Directorate General of Foreign Trade (DGFT) vide Trade Notice no. 28/2023-24 issued on 9th october 2023 has detailed the procedures for automatic process for Status Holder Certificate Issuance without Exporter Application Requirement.

In line with DGFT's ongoing e-Governance initiatives, a new IT module has been developed to assess and validate the export performance of individual companies. Under this system, the Status Holder Certificate (SHC) will be electronically generated based on export data stored in the DGCI&S database. Individual exporters will be categorized into one of the five status categories, determined by their merchandise export figures from both EDI and non-EDI Ports, as well as SEZ ports, in accordance with the eligibility criteria outlined in the Foreign Trade Policy of 2023.

This innovative approach eliminates the need for exporters to submit any application. Instead, the e-SHC corresponding to a specific status category will be automatically generated by the IT system. Consequently, the earlier process, which involved submitting an online application along with an export performance certificate from a Chartered Accountant and undergoing file examination at DGFT Regional Offices, will be rendered obsolete. The new system leverages existing government data elements to streamline the export certification process.

The e-SHC will be made available to the exporting entity in their registered email and the customer dashboard @ DGFT portal (https://www.dgft.gov.in/CP/), after necessary IT iterations, by 15th of August each year. The data set used for the Status categorization will be the merchandise export performance of the preceding 3 financial years or the preceding 2 financial years (in case of gems and jewellery sector) plus the 3 month export data from April to June of the current financial year.

1. As the export figures pertaining to services exports, deemed exports and double weightage exports (as admissible under para 1.27 of FTP 2023) are not being compiled by DGCI&S, there will be a few cases where this facility of automatic e-SHC cannot be extended. All such exporters who do not receive their e-SHCs within 48 hours of issue of this Trade Notice will need to make an application, if not already made, for grant of Status Certificate as per the FTP 2023 provisions in the existing IT module along with supporting CA certificate.
2. Further, all already filed pending/in-process Status applications under FTP 2023 will be scrutinized by the IT system for auto-issuance of Status Holder Certificate where the applied Status category is the same as identified by the system. Such Files will be shown as ‘closed’ after auto-issue.
3. Keeping in view that certain export data is not getting captured online as in i) above, there will be some cases where the e-SHC of a exporting entity, which has been automatically generated, is of a lower Status category than which it is otherwise eligible after adding the export performance of services export and/or deemed export. In such a scenario, for upgrading the Status certificate, the IEC holder will need to move an amendment application at the DGFT portal as per para 1.08 of HBP 2023. On issue of a new SHC with a higher/upgraded Status category by the DGFT Regional Office, the earlier e-SHC certificate will be automatically cancelled by the IT system.
4. DGFT Regional Offices are requested to expedite processing such applications as in i) and iii) above and seek additional documents from the exporting entities only in exceptional cases after permission from the Head of Office.

The directorate emphasised that all Status Holder Certificates issued in accordance with the FTP-2015-20 will retain their validity only until September 30, 2023, as stipulated in para 1.09 of HBP 2023. If any IEC holder wishes to obtain a Status Holder Certificate under FTP 2023 and is not included in the new automatic issuance process, they must submit an online application to the relevant jurisdictional Regional Authorities (RAs) of DGFT, following the guidelines outlined in para 1.08 of HBP 2023.

To Read the full text of the Order CLICK HERE

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