An Export House Certificate is an official recognition granted to companies that meet specific export performance benchmarks set by the Government of India. A company that achieves a minimum export performance of $3 million in a fiscal year is recognised as a One Star Export House. This accreditation is a component of a progressive system that honours exporters according to their export accomplishments.
Different Levels of One Star Export House Certificate
The export house certification system classifies companies into five levels based on their export performance.
- One Star Export House: Requires a minimum export performance of $3 million.
- Two Star Export House: Requires a minimum export performance of $25 million.
- Three Star Export House: Requires a minimum export performance of $100 million.
- Four Star Export House: Requires a minimum export performance of $500 million.
- Five Star Export House: Requires a minimum export performance of $2 billion.
It is important to note that Status Holder Certificates cannot be renewed. However, companies can apply for a new certificate after the current one expires. Additionally, no changes can be made to an issued certificate, and any alterations require the submission of a new application.
What is a One Star Export House Certificate?
A One Star Export House certificate is awarded to businesses for their significant contribution to India’s foreign trade. Companies must achieve an export performance of at least $3 million to qualify for this certification. This status acknowledges its role in boosting the country’s exports and enhancing its presence in international markets.
The One Star Export House certification, also called the Status Holder Certificate, is part of the Government of India’s export promotion initiatives. It is designed to honour businesses that have consistently contributed to the nation’s foreign trade growth. This recognition aims to incentivise exporters and encourage further excellence in global commerce.
A company’s export performance in a financial year is assessed based on the Free on-board (FOB) or Free on Rail (FOR) value of its exports. This performance is the key criterion for issuing export house certificates, which are categorised into five distinct levels. Each category represents a different level of export achievement, with varying export performance thresholds that companies must meet to qualify for a particular certificate.
These categories provide recognition to companies based on their export contributions, with higher certificates awarded to those achieving greater export values. The export house certification system is designed to incentivise and reward companies for enhancing their international trade performance, contributing to the overall growth of the country’s export sector.
How to Upgrade One Star Export House Certificate to Higher Levels?
Companies who want to move up from a one-star to a higher tier must gradually improve their export performance and reach the necessary benchmarks, which range from $25 million for a two-star export house to $100 million for a three-star export house, and so forth. In international trade, obtaining higher certification levels confers advantages and increased respect.
To upgrade to higher levels, such as a two-star or three-star export house, a company needs to consistently expand its export activities and achieve higher financial milestones. Each higher certification level comes with increased benefits, offering greater ease in trade operations, wider recognition, and stronger support for market access globally. By systematically improving export performance, companies can unlock more opportunities and advantages in international markets.
Eligibility for Different Export House Certificate Categories
Here are the details about the eligibility for different export houses as per the DGFT guidelines:
| Status Category | Details |
| Exporter | Based on their export activities, a person or organisation engaged in the manufacture or manufacturing of products or services meant for export, or a merchant exporter, is qualified for recognition. |
| Importer | An individual or organization involved in bringing goods and services into India from other countries. |
| Star Export House | An exporter with a strong history of export performance, recognised by the government for their significant contribution to the nation’s export sector. |
| Trading house | An exporter with significant export achievements who also focuses on enhancing the value of products and diversifying their export portfolio. |
| Premier Trading House | An exporter with exceptional export performance who makes a significant contribution to the country’s foreign exchange earnings. |
| Status Holder | An exporter or importer who receives a Status Certificate from the Director General of Foreign Trade (DGFT) is recognised for their export or import achievements based on their performance. |
| Service Provider | An individual or organisation is involved in exporting services, such as software development, consultancy, and various professional services. |
Conclusion
A One Star Export House certificate is awarded to companies that achieve a minimum export performance of $3 million in a fiscal year, recognising their contribution to India’s foreign trade. There are five levels of Star Export House certification, each requiring progressively higher export performance, with the highest being Five Star, which requires $2 billion in exports. Companies can upgrade their status by increasing their export performance, unlocking greater trade benefits and global market access as they progress through the levels.