In the dynamic world of international trade, achieving a competitive edge is crucial for any business looking to expand its horizons. For export organizations, one significant milestone is obtaining a Start Export House Certificate. This certification serves as a testament to an organization’s capability and expertise in navigating the complex waters of global markets.
Awarded by the Directorate General of Foreign Trade (DGFT) in India, the Start Export House Certificate is a coveted recognition that not only boosts a company’s credibility but also provides a host of benefits. These include preferential treatment in foreign trade procedures, enhanced market access, and eligibility for various government incentives.
By securing this certification, export organizations signal their commitment to quality, reliability, and excellence, thereby strengthening their position in the international arena and opening doors to new opportunities and partnerships worldwide.
What is an Export House Certificate?
An Export House Certificate is an official recognition granted by the Directorate General of Foreign Trade (DGFT) to exporters who have achieved a certain level of export performance. This certificate, also known as a Status Holder Certificate, helps exporters gain various benefits and privileges to boost their international trade operations.
Types of Export House Status
Obtaining an export house certificate or status is crucial for businesses aiming to enhance their export performance. Companies that achieve a certain level of export performance are eligible to apply for a star export house certification. The export house certificate application process evaluates the value of export earnings and the calculation of export performance based on the export performance during the current and previous years. A one star export house status is the initial recognition level, with the potential to progress to a star and above export house status, eventually reaching a three star and above export level or even a five star export house. The basis for export promotion often relies on the export earnings in free foreign currency and the ability to export freely exportable items.
Businesses holding an export house certificate are permitted to establish export warehouses to streamline their operations. These export warehouses facilitate the storage and distribution of freely exportable goods, ensuring timely deliveries and efficient logistics.
As a certificate or status holder, companies benefit from various incentives and support measures designed to boost their international trade activities. The one-star export house certification is a stepping stone for exporters to expand their market reach and improve their value of export.
Here are types of start export house certification:
- One Star Export House
- Two Star Export House
- Three Star Export House
- Four Star Export House
- Five Star Export House
Each status certificate corresponds to different export earnings thresholds and eligibility criteria.
Eligibility Criteria for Star Export House Certificate
To qualify for an Export House Certificate, exporters must meet specific export performance benchmarks over a defined period, typically the last three financial years. For example, a One Star Export House requires a minimum average annual export realization approximately $3 million.
Other factors include:
- Having a valid Import Export Code (IEC)
- Consistent export performance for at least two out of the last three years
- Compliance with DGFT regulations
| Export House Status | Export Performance FOB / FOR (as converted) Value (in US $ million) | Additional Eligibility Criteria (Double Weightage) |
| One Star Export House | 3 | MSME/SSI Certificate, ISO/BIS certified units, or units in special regions |
| Two Star Export House | 25 | Same as above |
| Three Star Export House | 100 | Same as above |
| Four Star Export House | 500 | Same as above |
| Five Star Export House | 2000 | Same as above |
How to Apply for Export House Certificate?
- Gather necessary documents including IEC, export invoices, and financial statements.
- Submit an application to DGFT through their online portal.
- Await verification and approval.
- Receive the Export House Certificate upon successful evaluation.
Benefits of Export House Certificate
- Priority in export promotion schemes
- Eligibility for government incentives and subsidies
- Enhanced credibility with international buyers
- Access to simplified customs procedures
When can you get an Export House Certificate?
You can apply for the Export House Certificate once you have achieved the required export turnover and met the eligibility criteria set by DGFT, usually after consistent export performance over two to three years.
Who gives Export House Certification?
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India, issues the Export House Certificate.
How much export revenue is needed to become a Star Export House?
A One Star Export House typically requires a minimum annual export turnover of around $3 million. Higher star ratings require progressively higher export earnings.