The grant of Export and Trading House status is one of the many promotional schemes in place by the Government of India. According to this scheme, merchandising and manufacturing companies fulfilling certain criteria can apply for such recognition.
The status holder becomes eligible for many privileges under the Foreign Trade Policy of India
Under the scheme, the applicants are granted the status depending on the total FOB / FOR export performance during the current plus previous three years as follows:
Status
Export performance (Rs Cr)
Export House
20
Star Export House
100
Trading House
500
Star Trading House
2,500
Premier Trading House
10,000
Source: Department of Commerce, Government of India
When exactly can exporter apply?
You can apply on achievement of the export performance criterion prescribed in the Foreign Trade Policy
What is the process?
At present, there is no fee payable for grant of recognition. As for the process, it is quite simple. It does not call for any specialized help to carry out the application process. However, it is up to the individual to decide on this. For an application for grant of status, you would need to file in ANF 3A of Aayaat Niryaat Form. This, along with the prescribed documents, needs to be filed in at the Regional Authoritys office. There are 32 such offices across the country in total (comprehensive list: http://snipurl.com/1q41t). Besides these, the DGFT headquarters in
Delhi has territorial jurisdiction throughout India.
For how long is this recognition valid?
As per the EXIM Policy 2004-09, the recognition of status will be valid up to 31 March 2009. After this, an application of renewal may be filed at the office of the regional authority.
What if my exports dip? Is the status still valid?
This actually would directly affect your status renewal in future. You have to keep in mind that renewal of the existing status will be granted only if the eligibility criterion is fulfilled.
What are the benefits?
As a status holder, you will be eligible for a number of privileges under the Foreign Trade Policy, such as automatic customs clearances on self-declaration, priority on fixation in yield ratio for export and import, direct negotiation of export documents, repatriations of export proceeds in 360 days, exemption from furnishing of BG in schemes under the policy, overseas warehouses, etc
The special facilities available to the status holders have been indicated as below:
License/certificate/permissions and Customs clearances for both imports and exports on self-declaration basis
100% retention of foreign exchange in EEFC account.
Enhancement in normal repatriation period from 180 days to 360 days.
Dispatch of shipping documents direct to importers. Exporters with proven track record who have been certified as "Status Holder Exporters" in terms of the EXIM Policy, to dispatch the export documents direct to the consignees outside India subject to the conditions that (a) the export proceeds are repatriated through the authorised dealer named in the GR form and (b) the duplicate copy of the GR Form is submitted to the authorised dealer for monitoring purpose, by the exporters within 21 days from the date of shipment of export.
Exemption from compulsory negotiation of documents through banks. The remittance however, would continue to be received through banking channels
Exemption from furnishing of Bank Guarantee in Schemes under this Policy
Reduction in Interest Rate Ceilings on Rupee Export Credit
The above benefits are available only to the exporters with proven track record who have been certified as Status Holder Exporters in terms of the EXIM Policy. Therefore exporter customers are requested to apply to get certified as Status Holder Exporters if they fulfill certain criteria for such recognition and customers who were recognized as Status Holder should apply for renewal of the existing status as their status was valid up to 31 March 2009.
