In a move to embrace e-Governance initiatives and simplify the process for exporters, the Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce & Industry, Government of India, has introduced a revolutionary system for the issuance of Status Holder Certificates (SHC). Under Trade Notice No. 28/2023-24, dated 9th October, 2023, DGFT has unveiled a seamless method for the automatic generation of the Export Status Holder Certificate (e-SHC) based on export data. This eliminates the need for exporters to file traditional applications, streamlining the process and leveraging available data. In this article, we will explore the key aspects of this new system and its implications for exporters.
Automation of e-SHC Issuance: The central aspect of this development is the automatic issuance of Status Holder Certificates. The e-SHCs will be generated electronically, relying on export data within the DGCI&S (Directorate General of Commercial Intelligence and Statistics) database. This database holds export data from various sources, such as EDI, non-EDI Ports, and SEZ ports. Eligibility for different Status categories under the Foreign Trade Policy 2023 will be determined based on merchandise export figures.
No More Traditional Applications: One of the most significant changes is that exporters will no longer be required to submit traditional applications for their SHCs. The entire process, which used to involve applications and the submission of supporting documents and certificates from Chartered Accountants, is now replaced by automated generation through the IT system. This initiative also eliminates the need for file examinations at the DGFT Regional Offices.
e-SHC Delivery and Status Categorization: Exporters will receive their e-SHCs through their registered email and the customer dashboard on the DGFT portal. The data used for categorization will include the merchandise export performance over the preceding three financial years or the preceding two financial years for the gems and jewelry sector. Additionally, it will incorporate the three-month export data from April to June of the current financial year.
Exceptions and Application Process: While the automated system covers most cases, there are exceptions. Certain export data, such as services exports, deemed exports, and double weightage exports, as permitted by FTP 2023, may not be available in DGCI&S records. In such situations, exporters must submit applications for Status Certificates as per the FTP 2023 provisions, along with supporting Chartered Accountant certificates. Any pending or in-process Status applications will be reviewed by the IT system for potential auto-issuance, closing these files when applicable.
Upgrading Status Category: There might be cases where the automatically generated e-SHC assigns a lower Status category than what the exporter is eligible for, accounting for services exports and deemed exports. In such cases, the exporter can apply to upgrade the Status certificate through the DGFT portal. Once a higher/upgraded Status category SHC is issued by the DGFT Regional Office, the earlier e-SHC will be automatically canceled.
Expedited Processing and Transition from FTP 2015-20: DGFT Regional Offices are urged to expedite processing applications and request additional documents from exporting entities only in exceptional cases, with the approval of the Head of Office. It’s important to note that Status Holder Certificates issued under FTP 2015-20 will remain valid only until 30th September 2023. Exporters wishing to avail the Status Holder Certificate under FTP 2023 should apply online to the relevant jurisdictional Regional Authorities (RAs) of DGFT.
Guidance and Support: The DGFT has provided guidance and assistance through Help manuals and FAQs available on their website. For further help, exporters can raise service request tickets, contact the toll-free Helpdesk, or send inquiries to the Helpdesk email.
Conclusion: The introduction of automated e-SHC issuance by the DGFT marks a significant step forward in simplifying and streamlining the export certification process in India. Exporters will no longer be burdened with traditional applications and supporting documentation, and the system will use available export data to categorize exporters into different Status categories. Exceptions have been considered for cases where certain export data is not readily available, allowing exporters to apply manually. The transition from FTP 2015-20 to FTP 2023 will also bring changes in certificate validity. This initiative aligns with the broader goals of e-Governance and modernization in trade procedures, making the process smoother and more efficient for Indian exporters.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Trade Notice No. 28/2023-24 Dated: 9th October, 2023
Subject : Automatic System based issue of Status Holder Certificate (e-SHC) with no requirement of filing any application by the exporter- reg
In furtherance of the e-Governance initiatives being taken by DGFT, a new IT module to recognize and certify the export performance of individual companies has been developed. Henceforth, the Status Holder Certificate (SHC) will’ be electronically generated based on export data available in DGCI&S database. The individual exporters will be divided into the five Status categories based on available merchandise export figures from EDI, non EDI Ports and SEZ ports as per the eligibility criterion in Foreign Trade Policy 2023. As a result there will be no requirement by the exporter to file any kind of application and the e-SHC, for a particular status category will be generated automatically by the IT system. This will eliminate the earlier process of submission of an online application with supporting export performance certificate from a Chartered Accountant and will also do away with the file examination required at the DGFT Regional Offices and use existing data elements available within the Government for export certification.
2. 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 15 th 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 jewelry sector) plus the 3 month export data from April to June of the current financial year.
3.
i) 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.
ii) 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.
iii) 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.
iv) 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.
4. It is being reiterated that all Status Holder Certificates issued under FTP 2015-20 will remain valid till 30th September 2023 only as provided under para 1.09 of HBP 2023 and any IEC holder willing to avail the Status Holder Certificate under the FTP 2023, and who is not getting covered under the new mechanism of automatic issue, will need to apply online to the concerned jurisdictional RAs of DGFT as per para 1.08 of HBP 2023.
5. For guidance on these new processes, the Help manual & FAQs may be accessed at https://dgft.gov.in > Learn > ‘Application Help & FAQs’. For any further assistance you may utilize any of the following channels
- Raise a service request ticket through the DGFT Helpdesk service under Services > ‘Trade Helpdesk Service’
- Call the toll-free Helpdesk number
- Send an email to the Helpdesk on dgftedi@gov.in
Any difficulty/challenge faced in implementation may be brought to notice to this Directorate.
(Deepak Jhalani)
Deputy Director General of Foreign Trade
Policy 3 Division
To,
1. EPCs/ FIEO
2. All DGFT RAs
3. Members of Trade and Industry
[Issued from F.No. 01/61/180/086/AM24/PC-3]
