In a significant step toward enhancing trade facilitation and simplifying procedures, India’s Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has introduced an automated system for the issuance of Status Holder Certificates (SHC). This new approach eliminates the requirement for exporters to submit applications, marking a paradigm shift in export certification processes. This article delves into the details of this transformative change, as outlined in Public Notice No. 32/2023 dated 9th October 2023.
Automated SHC Issuance: Under the revised procedure, DGFT has transitioned to an automated process for generating Status Holder Certificates. These certificates will be system-generated based on merchandise export data available in the DGCI&S (Directorate General of Commercial Intelligence and Statistics) database. Most notably, this eliminates the need for exporters to file applications for the certificate, representing a substantial shift from the prior manual application process.
Application and Up-gradation: While the primary emphasis is on automatic issuance, exporters still have the option to file applications online for the recognition of Status or for upgrading their existing Status under the Foreign Trade Policy. Such applications, including requests for up-gradation, should be made with a Certificate from a Chartered Accountant (CA). The applications will need to be submitted to the regional jurisdictional offices (RA) of DGFT. The specific RA will be determined by the location of the Registered Office for companies and the Head Office for other entities, as per the guidelines in Appendix 1A.
Trade Facilitation and Ease of Doing Business: The introduction of automated SHC issuance aligns with India’s broader goal of enhancing trade facilitation and promoting ease of doing business. By relying on existing export data, the need for filing applications and undergoing traditional file examinations is eliminated. The use of available data elements within the Government’s records streamlines the process and significantly reduces the administrative burden on exporters.
Conclusion: India’s DGFT’s decision to transition to an automated system for issuing Status Holder Certificates is a noteworthy development for the export community. It not only streamlines and simplifies the certification process but also underscores the government’s commitment to trade facilitation and ease of doing business. Eliminating the need for exporters to file applications will lead to more efficient processes and better leverage available data resources. Exporters now have the option to apply for Status recognition and up-gradation with the support of Chartered Accountant certificates. Overall, this move represents a progressive shift in aligning India’s trade practices with modern, technology-driven solutions.
This notification issued by the DGFT brings about a significant change in India’s export landscape and holds the promise of further promoting a thriving export ecosystem.
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Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
VanijyaBhawan, New Delhi
Public Notice No: 32/2023 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
F. No. 01/61/180/086/AM24/PC-3:— In exercise of power conferred under paragraph 1.03 and 2.04 of the Foreign Trade Policy (FTP), 2023 as amended from time to time, and in furtherance of the e-Governance initiative of DGFT as envisaged in Para 1.04 (d) of Handbook of Procedures 2023, the Director General of Foreign Trade hereby makes the following amendments in Handbook of Procedures, 2023:
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Para No. |
Text of Existing Para | Text of Revised Para |
| 1.08 Status Holder: Application for recognition grant of Status Certificate | (a) Exporters shall be required to file an application online for of status under the Policy in ANF 1B along with prescribed documents.
(b) Online Application for status certificate shall be filed with jurisdictional RA as determined by(b) the location of Registered Office in the case of Company and of Head Office in the case of others as per Appendix 1A. |
(a) In the interest of trade facilitation, the endeavor has been to recognize and grant system-generated electronic Status Holder Certification, based on merchandise export data available with DGCI &S without the need for filing any application by the exporter.
(b) Wherever required, exporters may also file an application online for recognition as well as for up-gradation of Status under the Policy in ANF 1B along with CA Certificate. Online Application for Status certificate shall be filed with regional jurisdictional offices (RA) of DGFT as determined by the location of Registered Office in the case of Company and of Head Office in the case of others as per Appendix 1A. |
Effect of this Notification: The Status Holder Certificate is being electronically generated based on export data available in DGCI&S database with no requirement by the exporter to file any kind of application in most cases. This will further the ease of doing business by doing away with the application process & file examination and use of existing data elements available within the Government for export certification.
(Santosh Kumar Sarangi)
Director General of Foreign Trade
Ex-officio Additional Secretary to the Government of India
E-mail:[email protected]
[Issued from File No. 01/61/180/086/AM24/PC-3]
