What are the criteria for an export house certificate?

Export house certificates, also known as Export status holders are Indian companies that have performed well in international trade and have made an important contribution to the nation's foreign exchange earnings. 

Export house status is given to all exporters of products technologies, services, or products that have an import-export code (IE code). Recognition of the status of an export house is dependent on the performance of exports of the business in every financial year (FOB or FAR value).

Obtained Export House Certificate or Status

A company that is involved in exporting products or services could be granted an export house certification. The applicant will be eligible to apply for and be classified based on certain minimum export performance standards in the two previous financial years. The calculation of export performance can be done on an assumption of the FOB (Free on Board) value of the export earnings in foreign exchange that is free. If considered exports it is converted from into the FOR amount of the exports Indian rupees to USD using the exchange rate determined that is set by the Central Board of Excise and Customs that is applicable to the 1st April in each financial year.

Exhaust House Status Eligibility Criteria

Based on the performance of exports of the exporter's export performance, their status is determined according to the following:

• One Star Export House One Star Export House: USD3 - USD25 Million Export Performance

• Two Star Export House: USD25-USD100 Million Export Performance

• Three Star Export House: USD100-USD500 Million Export Performance

• Four Star Export House: USD500 - USD2000 Million Export Performance

• Five Star Export House at USD2000 million and over Export Performance

In order to be granted status as an export house, the export performance must be satisfactory for at least two years out of the three consecutive years.

MSME Export House Status Eligibility

The following exporters with IE codes are allowed double weightage in the calculation of export performance to qualify for status. However, the following kinds of exporters are eligible for double weightage and are classified as export houses with a single star. The rules do not allow double weightage to be used for recognition of status, as with any other type of category, for instance, two, three, four-star export houses.

• Micro, Small and Medium Enterprises (MSME)

• Manufacturing units that have ISO and BIS certification

• Units are located within areas in the North Eastern States including Sikkim and Jammu & Kashmir

• Units are located within Agri Export Zones

A few of the special treatment and privileges available to high-status holders are as follows.

(a). Status-holders have the right to EDF Waiver (waiver of forms for GR) to export goods for free up to a maximum that is Rs.10 lakh, or 2.2% of the average annual export realization, whichever is less.

(b). Certificates, licenses, permits, and customs clearances are permitted for imports and exports, on a self-declaration basis.

(c). Status holders are not required to submit Bank Guarantees for FTP schemes unless otherwise specified anyplace in HBP or FTP.

(d). Negotiating export invoices through the bank isn't required however, the proceeds of export must be channeled through banking channels.

(e). Export houses with two stars or more can establish "Warehouses" as per the guidelines issued by Revenue Department. Revenue Department.

(f). Export houses that are three-star or higher can avail of the benefits of the Accredited Customer Programme (ACP) in accordance with Central Board of Excise and Customs guidelines.

(g). Three or Four-star status holders are able to self-certify their produced goods as coming of India (certificate of the origin) to get special treatment under PTAs FTAs CECA and CEPA. Paragraph 2.61 (III) of the Foreign Trade Policy (2015-2020) specifies self-certification of the origin of products by status holders.

(h). The candidate is eligible for fixing the Input-Output norms in Priority within 60 days.

(i). All earned foreign exchange (100 100 percent) can be reinvested within the EEFC account.

(j). The normal repatriation time of export earnings is extended from 180 and up to 360.

Requirements are required for Grant of Export House Status

In addition to this, it is not able to allow the transfer of exported performance for the one IE Code holder to another IE Code holder. Furthermore, exports that are made in a reexport-based manner, those that export items that are subject to authorization, and SCOMET items will not be considered to count as part of the performance for exports.