The government has relaxed the eligibility criteria for One Star Export House status by revising the specific international trade and financial performance norms. According to reports from PTI, the government on Friday relaxed the 'One Star Export House' eligibility condition for exporters by revising the specific international trade and financial performance norms in three consecutive fiscal years. Earlier, exporters were required to achieve specific export performance in all three preceding financial years to receive this recognition, but under the revised norms, export firms reporting the same in any two of the three preceding fiscals will be eligible to get this recognition.
The revised norms exclude the gems and jewellery sector, which already maintains a separate two-year requirement under foreign trade policy (FTP) 2023. As reported by PTI, the directorate general of foreign trade (DGFT) has amended a provision of the FTP to allow granting of One Star Export House status to applicants (other than for the Gems and Jewellery sector) who possess export performance in any two out of the three preceding financial years, subject to other provisions. The DGFT stated that 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.
Upon achieving prescribed export performance, recognition is accorded as one star export house, two star export house, three star export house, four star export house and five star export house by DGFT, based on their export performance. According to PTI, such status holders are eligible for various non-fiscal privileges, including customs clearances for both imports and exports on a self-declaration basis. The recognition provides eligible exporters with various non-fiscal benefits, including customs clearance for imports and exports on a self-declaration basis.
In a separate trade notice, DGFT has introduced an automated facility for grant of export obligation extension in respect of Advance Authorisation and Export Promotion Capital Goods (EPCG) Authorisation cases. As reported by PTI, these committees are key decision-making bodies of the DGFT that examine exporters' requests for relief, policy relaxations and extensions in cases where strict trade policy provisions cause genuine hardship. The automated facility specifically covers cases considered by PRC (policy relaxation committee)/EPCG Committee, with the committees examining exporters' requests for policy relaxations, relief and extensions in cases where compliance with existing trade policy provisions may cause genuine hardship.
