Star Export House Certificate | How to Apply? | All You Need To Know

Summary

This video explains the Star Export House Certification scheme under India's foreign trade policy, designed to simplify and encourage export activities. The scheme classifies exporters into different categories based on their export performance, offering benefits such as priority customs clearance, exemption from bank guarantees, and the ability to self-certify the origin of goods. Exporters must meet specific eligibility criteria and threshold performance levels to apply. The video also covers the application process, key terms and conditions, and how AV International helps clients navigate the certification process efficiently.

Takeaways

• 😀 Star Export House certification is a mechanism under the Foreign Trade Policy to recognize exporters for their contributions to international trade.
• 😀 Exporters can be rated as 1-star, 2-star, 3-star, 4-star, or 5-star based on their export performance over the past years.
• 😀 The eligibility criteria for Star Export House certification include having a valid IEC code and meeting specific export performance thresholds for the past 3 years (2 years for Gems & Jewelry).
• 😀 The performance of exporters is counted in FOB value (in foreign currency) or in INR for deemed exports, and converted to USD as per CBIC exchange rates.
• 😀 Some key benefits of certification include priority customs clearance, expedited fixation of norms, and exemption from bank guarantees for export incentives.
• 😀 Star Export House holders can establish export warehouses, and their consignments receive preferential treatment by concerned agencies.
• 😀 Higher status holders (3-star or above) can self-certify their goods for origin to qualify for preferential treatment under trade agreements.
• 😀 Star Export House holders can export items on a free-of-cost basis for export promotion, with specific limits based on annual export realizations.
• 😀 The status certificate is valid for 5 years, and exporters can upgrade their status by meeting higher performance thresholds.
• 😀 Exporters must maintain accurate records of their exports and imports, and these accounts must be available for inspection if needed.
• 😀 A double weightage concept allows certain eligible exporters (like MSMEs or those in specific sectors) to count their export performance twice for eligibility.

Q & A

What is the Star Export House certification scheme?

The Star Export House certification scheme is part of India's foreign trade policy, designed to recognize exporters who have excelled in international trade and contributed to the country's foreign trade. It provides exporters with various benefits and recognition as business leaders in the export sector.

Who is eligible to apply for the Star Export House certification?

Exporters of goods, services, and technology with a valid IEC (Import Export Code) are eligible. They must also meet the export performance criteria for the preceding years, which varies based on the sector (three years for most exporters, two years for Gems and Jewelry exporters).

How are the thresholds for Star Export House categories defined?

The thresholds for each Star Export House category are based on the export performance measured in USD. For example, a one-star export house requires an export performance of $3 million, a two-star export house requires $15 million, and so on, as per the specific chart in the script.

What are the key benefits of having Star Export House certification?

Some benefits include priority customs clearance, exemption from bank guarantees, expedited input-output norms fixation, establishment of export warehouses, preferential treatment for consignments, and the ability to self-certify the origin of goods for preferential trade agreements.

Can a Star Export House export goods free of cost, and if so, under what conditions?

Yes, a Star Export House can export certain freely exportable items free of cost for export promotion, with an annual limit of Rs 1 crore or 2% of average annual export realization in the preceding three years, whichever is lower. However, such supplies are not entitled to duty drawbacks or other export incentives.

What is the concept of double weightage in export performance?

Double weightage allows certain eligible exporters, such as MSMEs or those with ISO certifications, to have their export performance counted twice. This helps them qualify for a higher Star Export House status even if they do not meet the regular export thresholds.

What are the mandatory documents required for applying for the Star Export House certification?

The required documents include a valid IEC, RCMC certificate, statement of exports verified by a chartered accountant, and other documents depending on the specifics of the application, such as certificates for double weightage claims or exports from SEZs.

What is the application process for obtaining a Star Export House certificate?

The process involves ensuring prerequisites like valid login credentials on the DGFT portal and an active IEC code. Then, the exporter fills out the application form in ANF 3C and submits it to the DGFT Regional Authority. After processing, deficiencies, if any, must be cleared before the final approval and certification.

How long is the Star Export House certificate valid, and can it be upgraded?

The Star Export House certificate is valid for five years from the date of application. Exporters can upgrade their status by meeting higher thresholds and surrendering their previous certificate.

How does AV International assist exporters in obtaining the Star Export House certificate?

AV International provides end-to-end consultancy services, including documentation, application submission, clearing deficiencies, and post-certification compliance. The company has helped over 500 clients obtain their Star Export House certificates.