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How to Qualify for One-Star Export House Status in India

How to Qualify for One-Star Export House Status in India

The One Star Export House status is a prestigious recognition granted by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade Policy (FTP) of India. This certification is awarded to exporters who have demonstrated consistent export performance. Attaining this status provides multiple benefits, including easier access to international markets, better credibility, and various government incentives. In this guide, we will explore the eligibility criteria, documentation, benefits, and the process to apply for the One Star Export House status in India.

Understanding the Star Export House Certification

The Star Export House Certification is categorized into five levels based on the export performance of a company over a specific period. These are:

  • One Star Export House
  • Two Star Export House
  • Three Star Export House
  • Four Star Export House
  • Five Star Export House

Each category is awarded based on the Net Foreign Exchange (NFE) earnings of the exporter during the preceding three years.

Eligibility Criteria for One Star Export House

To qualify for One Star Export House status, exporters must fulfill the following eligibility conditions:

1. Minimum Export Performance Requirement

  • Exporters must achieve a minimum export turnover of USD 3 million (FOB value) in the last three financial years.
  • This turnover should be from exports of goods, services, or software.

2. DGFT Recognition

The firm must be registered with the Directorate General of Foreign Trade (DGFT) and possess a valid Import Export Code (IEC).

3. Compliance with Foreign Trade Policy

The applicant must comply with all provisions of the Foreign Trade Policy (FTP) and should not be involved in any fraudulent trade practices.

4. Business Entity Type

The applicant can be a proprietorship, partnership, LLP, company, or any recognized legal entity engaged in export activities.

5. Export of Deemed Goods

Exports under deemed export categories, including supplies to SEZs (Special Economic Zones) and EOUs (Export Oriented Units), are also considered.

Documents Required for One Star Export House Application

To apply for One Star Export House certification, the following documents are required:

  • Application Form (ANF-3C): Filled and signed application form.
  • IEC Certificate – Import Export Code issued by DGFT.
  • GST Registration Certificate – To validate the business operations.
  • PAN Card of the Business – For verification of the business entity.
  • Export Performance Statement – CA-certified statement of FOB value of exports for the last three financial years.
  • Foreign Exchange Realization Certificate (FIRC) – Bank certificate showing foreign exchange earnings.
  • DGFT Digital Signature Certificate (DSC) – Required for online filing of the application.
  • Any other supporting documents – As specified in the application process.

Step-by-Step Process to Apply for One Star Export House Status

Step 1: Register on the DGFT Portal

  • Ensure your IEC is updated and linked with your GST and PAN details.

Step 2: Fill the Application Form (ANF-3C)

  • Download and fill out ANF-3C with all relevant details.
  • Attach the required documents, including export turnover statements and FIRC certificates.

Step 3: Submit the Application Online

  • Upload scanned copies of documents.
  • Digitally sign the form using DGFT DSC and submit it through the portal.

Step 4: Payment of Fees

  • Pay the prescribed application fee online through DGFT’s e-payment gateway.

Step 5: Application Review & Approval

  • DGFT officials review the submitted documents.
  • If approved, the One Star Export House Certificate is issued electronically.
  • If any discrepancies are found, DGFT may request additional documents.

Benefits of One Star Export House Status

Obtaining the One Star Export House status offers multiple advantages:

  • Self-Certification of Shipping Bills – No need for bank or DGFT verification.
  • Faster Customs Clearance – Priority handling at customs ports.
  • Exemption from Bank Guarantee – For various government schemes.
  • Better Global Credibility – Recognition as a trusted exporter.
  • Eligible for EPCG Scheme – Easier access to duty-free capital goods imports.
  • Financial Incentives – Access to export incentives under various FTP schemes.
  • Participation in Trade Fairs – Preference in international trade fairs organized by DGFT.

Common Challenges in Getting One-Star Export House Certification

While the process is straightforward, some exporters face difficulties, including:

  • Inaccurate documentation: – Errors in export performance statements.
  • Lack of Proper Recordkeeping—Missing FIRC certificates.
  • Application Rejection Due to Non-Compliance – Failing to meet NFE requirements.
  • Delayed Processing – Due to incomplete or incorrect submissions.

To avoid these issues, ensure accurate documentation and compliance with DGFT norms.

Conclusion

Achieving One Star Export House status in India is a significant milestone for exporters. It offers various trade benefits, global recognition, and enhances market access. By maintaining proper records, ensuring compliance with DGFT regulations, and following the correct application process, exporters can easily qualify for this prestigious certification. If you’re an exporter looking to grow your business internationally, obtaining the One Star Export House status is a strategic move that can unlock multiple opportunities.

For further guidance, you can consult an expert consultant or contact DGFT authorities for assistance.

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