DGFT relaxes One Star Export House norms, exporters can qualify on performance in any two of three preceding years

The government on Friday relaxed the eligibility criteria for One Star Export House status, allowing exporters to qualify based on their export performance in any two of the three preceding financial years.

The Directorate General of Foreign Trade (DGFT) amended the Foreign Trade Policy to revise the requirement, under which exporters earlier had to meet the prescribed export performance criteria in all three preceding financial years.

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The revised rule does not apply to the gems and jewellery sector, which already has a separate two-year eligibility requirement under the Foreign Trade Policy 2023.

The DGFT said the amendment will allow applicants, other than those from the gems and jewellery sector, to receive One Star Export House status if they have the required export performance in any two of the three preceding financial years, subject to other applicable provisions.

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Exporters are granted One Star, Two Star, Three Star, Four Star or Five Star Export House status based on their prescribed export performance. The recognition provides eligible exporters with various non-fiscal benefits, including customs clearance for imports and exports on a self-declaration basis.

DGFT adds facility for export extensions

In a separate trade notice, the DGFT said it has introduced an automated facility to grant extensions of export obligations in Advance Authorisation and Export Promotion Capital Goods (EPCG) Authorisation cases considered by the Policy Relaxation Committee and EPCG Committee.

The committees examine exporters' requests for policy relaxations, relief and extensions in cases where compliance with existing trade policy provisions may cause genuine hardship.