Status Holders and Star Export Houses
Five star categories, five export thresholds, and privileges that change how the bank handles documents.
A Status Holder is an exporter that DGFT has recognised, on the strength of its export performance, as a One Star to Five Star Export House. The recognition sits in Chapter 1 of the Foreign Trade Policy (FTP) 2023 and brings procedural privileges, along with an expectation that the firm will mentor and train new exporters.
Banks meet the status mainly through the privileges: a status holder does not have to route its export documents through a bank, and it is spared bank guarantees under FTP schemes. RBI's own export rules also refer to status holders; this page covers the FTP side.
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Status Categories and Thresholds
Export performance thresholds under para 1.26 of FTP 2023, in USD million.
| Status category | Export performance threshold |
|---|---|
| One Star Export House | USD 3 million |
| Two Star Export House | USD 15 million |
| Three Star Export House | USD 50 million |
| Four Star Export House | USD 200 million |
| Five Star Export House | USD 800 million |
How Performance Is Counted
- check_circleAny exporter of goods, services or technology holding an IEC on the date of application is eligible.
- check_circleThe threshold is measured over the current and preceding three financial years (current and preceding two for Gems & Jewellery), and some export performance is needed in each of those preceding years.
- check_circleExports count at FOB value of earnings in freely convertible currency, or in Indian Rupees as permitted by para 2.53. Deemed exports count at FOR value, converted at the CBIC exchange rate applicable on 1 April of each year.
- check_circleExport performance cannot be transferred from one IEC holder to another, so disclaimers are not allowed. Re-exports do not count. Exports under authorisation, including SCOMET items, do count.
Double Weightage Applies Only to One Star
Exports by micro and small enterprises, ISO/BIS-certified manufacturing units, units in the North Eastern States including Sikkim and in J&K and Ladakh, and exports of fruits and vegetables (Chapters 7 and 8 of ITC(HS)) get double weightage. It helps only for One Star status, and a shipment can get double weightage once, under one category.
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Privileges of Status Holders
Para 1.29 of FTP 2023 lists what the recognition brings:
- Self-declaration
- Authorisations and customs clearances for imports and exports may be granted on self-declaration.
- Faster norms
- Input-output norms may be fixed on priority within 60 days by the Norms Committee.
- No bank guarantee
- Exemption from furnishing bank guarantees under FTP schemes, unless the FTP or Handbook says otherwise.
- No compulsory negotiation through banks
- Status holders need not negotiate export documents through banks. Remittances and receipts must still come through banking channels.
- Export warehouses
- Two Star and above may set up export warehouses under Department of Revenue guidelines.
- Self-certified origin
- Three Star and above manufacturers can self-certify goods as originating in India for preferential and free trade agreements.
- Free-of-cost exports
- Freely exportable items may be sent free of cost for export promotion, up to ₹1 crore or 2% of average annual export realisation over the preceding three years, whichever is lower (with higher limits for pharma).
Mentoring Obligation
Under para 1.30, status holders endeavour to train people in international trade each year.
| Status | Trainees per year |
|---|---|
| Two Star | 5 |
| Three Star | 10 |
| Four Star | 20 |
| Five Star | 50 |
Applying and Validity
The exporter applies online in form ANF 1B to the regional authority that covers its registered office (or head office for non-companies). A status certificate issued under FTP 2023 is valid for 5 years from the date the application was filed. Certificates issued under FTP 2015-20 stayed valid only until 30 September 2023. A holder that crosses a higher threshold can surrender the certificate and apply for the higher category.
How CCFE Tests This
Threshold recall dominates: match the star to the USD figure. The banker's trap is the negotiation privilege. Status holders are exempt from compulsory negotiation of documents through banks, but the money must still flow through banking channels; options suggesting they can receive proceeds outside the banking system are wrong. Watch also for double weightage offered as a route to Two Star or above; it is not.
FAQs
What is the export threshold for a One Star Export House?expand_more
USD 3 million of export performance over the current and preceding three financial years, under para 1.26 of FTP 2023.
How long is a status holder certificate valid?expand_more
5 years from the date the application for recognition was filed, for certificates issued under FTP 2023.
Do status holders have to route export documents through a bank?expand_more
No. They are exempt from compulsory negotiation of documents through banks, but remittances and receipts must still come through banking channels.
Who gets double weightage for status recognition?expand_more
MSEs, ISO/BIS-certified manufacturers, units in the North East, J&K and Ladakh, and exporters of fruits and vegetables. It counts only towards One Star status.
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