What is 3-star export house certification and how does it benefit the firm?

Rushil Decor Ltd, a company that deals in modern interior infrastructure and eco-friendly, composite wood panels, has informed exchanges that it has been awarded 3-star export house certification from the Government of India. The company also said that it now stands to benefit from a range of advantages. If you are wondering what is this 3-star export house certification and how it benefits the company, here we have explained everything.

What is a star export house certificate?

Export House Certificates or Status Holder Certificates are given to businesses in India that have given excellent performance in international trade and have made a significant contribution to the country's foreign exchange earnings.

The exporter of goods or services is eligible to obtain the certificate only after reaching a specified minimum export performance in the current and previous two financial years.

Who is eligible for the certificate?

According to the Directorate General of Foreign Trade, all exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder.

What is the validity of the certificate?

The certificate is valid for 5 years from the date of issuance or until the validity of the Foreign Trade Policy, whichever is earlier.

According to Rushil Thakkar, Director, Rushil Decor Limited, the company achieved its export target of Rs 250 crore to get 3 Star export house certification

"We are now targeting to achieve Rs 500 crore export mark within a span of next four years and secure 4-star export house status," Thakkar said.

According to the exchange filing, 3-star export house Rushil Decor now stands to benefit from a range of advantages that will streamline trade operations, which include: 

• Authorisation & custom clearance for imports & exports on a self-declaration basis.

• Exemption from furnishing bank guarantee for Foreign Trade Promotion Schemes.

• Priority fixation of input-output forms within 60 days by the Norms Committee.

• Exemption from compulsory negotiation of documents through banks.

• Benefits of the Accredited Clients Programme, as per the guidelines of the Central
Board of Excise and Customs.

• Eligible to export freely exportable items on of cost basis for export promotion subject to an annual limit of Rs.10 lakhs or 2% of average annual export realisation during the preceding 3 licensing years, whichever is higher.

• Eligible to self-certify their goods as originating from India.