SHC

Topic Insight
As per chapter 3.20 of Foreign Trade Policy, Status Holders are business leaders who have excelled in international trade and have successfully contributed to country’s foreign trade. Status Holders are expected to not only contribute towards India’s exports but also provide guidance and handholding to new entrepreneurs.
Governing Laws: Foreign Trade Policy and Handbook of Procedures
Issued By:Directorate General of Foreign Trade (DGFT)

Eligibility
1. All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance.
2. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years.
3. Exports made on re-export basis shall not be counted for recognition.
4. Export of items under Authorization, including SCOMET items, would be included for calculation of export performance

Calculation of Export Performance
1. The export performance will be counted on the basis of FOB of export earning in freely convertible foreign currencies.
2. For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year.
3. For granting status, export performance is necessary in at least two out of four years
4. An applicant will be categorized as any of the following categories of status holder based on achieving export performance during the current and previous three financial years:

Validity of Certificate: 5 years from the date on which application for recognition was filed

Grant of Double Weightage
1. The following categories shall be granted with double weightage for calculation of export performance for grant of status.
(i)Micro, Small & Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises Development (MSMED) Act 2006.
(ii)Manufacturing units having ISO/BIS.
(iii) Units located in North-Eastern States including Sikkim and Jammu & Kashmir.
(iv)Units located in Agri Export Zones.
2.The Double Weightage shall be available for grant of One Star Export House Status category only and double weightage shall not be admissible for grant of status recognition of other categories other than One Star Export House.

Privileges of Status Holders
(i)Authorization and Customs Clearances for both imports and exports may be granted on self-declaration basis.
(ii)Input-Output norms may be fixed on priority within 60 days by the Norms Committee; Special scheme in respect of Input Output Norms to be notified by DGFT from time to time, for specified status holder.
(iii)Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless otherwise specified.
(iv)Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels.(v)Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.
(vi)Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP)
(vii)The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.
(viii)Manufacturers who are also status holders above 3 star will be enabled to self-certify their manufactured goods as originating from India with a view to qualify for preferential treatment under different preferential trading agreements.