Indian Exporters To Get Automatic ‘Status Holder’ Certificates
Union Minister of Commerce & Industry and Textiles Piyush Goyal unveiled an initiative to issue system based automatic ‘Status Holder’ certificates under the Foreign Trade Policy (FTP) 2023.
The exporter will not be required to apply to the office of Directorate General of Foreign Trade (DGFT) for a status certificate.
The export recognition will be provided by the Directorate General of Commercial Intelligence and Statistics (DGCIS) merchandise export based electronic data and other risk parameters.
This initiative not only reduces compliance burden and promotes ease of doing business but also recognises the need and importance of collaboration within the Government.
Under the current export regime, an exporter is required to file an online application along with an export certificate from a chartered accountant for grant of status.
The new arrangement will lead to a simplified regime where no applications are invited from exporters and the certification is granted every year in August based on annual export figures available with DGCIS.
It is expected that the Status Holder certification program will provide credibility to Indian exporters in the international markets.
In addition, it provides other privileges like simplified procedures under FTP 2023 and priority custom clearances on self-declaration basis, exemption from compulsory negotiation of documents through banks, exemption from filing Bank Guarantee for FTP schemes etc.
With the launch of this new system, the Ministry of Commerce and Industry will be recognising about 20,000 exporters under FTP 2023 as Status Holders which will be a quantum jump from the earlier number of 12,518 exporters.
