What Is DGFT Status Holder Certification and Who Is Eligible?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
DGFT status holder certification recognises exporters who reach set export thresholds under the Foreign Trade Policy 2023. There are five categories, from One Star Export House at USD 3 million to Five Star Export House at USD 800 million. Any exporter of goods, services or technology with an IEC can apply. Status holders get faster, lighter procedures.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Exporters of goods, services and technology who hold an Importer Exporter Code (IEC) on the date of application and meet the export performance threshold | Foreign Trade Policy 2023, paras 1.25 to 1.30 (para 1.25(d) amended by DGFT Notification 33/2026-27); Handbook of Procedures 2023, paras 1.08 to 1.12 | No fixed filing date; a certificate is valid for 5 years from the date the application was filed, and an appeal against suspension or cancellation is due within 45 days | Not applicable as a fine; the Regional Authority can refuse, suspend or cancel the status certificate for listed breaches | 8 Oct 2026 |
What is DGFT status holder certification under the Foreign Trade Policy 2023?
DGFT status holder certification is a recognition given by the Directorate General of Foreign Trade to exporters whose export performance crosses a set value. Para 1.25(a) of the Foreign Trade Policy 2023 describes status holders as business leaders who have excelled in international trade and who are expected to guide new entrepreneurs.
- Who grants: The jurisdictional Regional Authority of DGFT issues the certificate on an online application in ANF 1B (Handbook of Procedures para 1.08).
- Categories: Five levels from One Star to Five Star Export House, each tied to an export performance threshold in USD million (FTP para 1.26).
- Who can apply: All exporters of goods, services and technology having an IEC number on the date of application (FTP para 1.25(b)).
- Measurement: Export performance is counted on the FOB value of export earnings in freely convertible foreign currency, or in Indian Rupees where FTP para 2.53 allows.
- Validity: A certificate issued under FTP 2023 is valid for 5 years from the date on which the application was filed (HBP para 1.09(b)).
- Old certificates: Status certificates issued under FTP 2015-20 remained valid only till 30 September 2023 (HBP para 1.09(a)).
Status holder certification is a recognition with procedural privileges. It does not change the FEMA rules on declaring exports and realising payment, which every exporter still follows through an AD bank.
Who can apply for DGFT status holder certification?
Any exporter of goods, services or technology that holds an IEC on the date of application can apply for DGFT status holder certification once the export threshold is met (FTP para 1.25(b)). In practice the USD 3 million entry level means certification mostly suits established exporting firms.
| Entity type | Applicable | Why | Best for |
|---|---|---|---|
| Goods exporter (manufacturer or merchant) with IEC | Yes, if threshold met | Eligibility covers exporters of goods with an IEC (FTP para 1.25(b)) | Firms with steady goods exports above USD 3 million over the qualifying period |
| Services or IT exporter with IEC | Yes, if threshold met | Exporters of services and technology are named in FTP para 1.25(b) | Software, consulting and other service firms invoicing abroad |
| Micro or small enterprise | Yes, with double weightage for One Star only | Exports count double towards One Star status (FTP para 1.27(a)(i)) | Small exporters close to the One Star threshold |
| Unit in the North Eastern States, Sikkim, Jammu, Kashmir or Ladakh | Yes, with double weightage for One Star only | Listed for double weightage in FTP para 1.27(a)(iii) | Exporters based in these regions |
| Gems and Jewellery exporter | Yes, on a shorter period | Performance is counted over the current and preceding two financial years, and the 2026 One Star relaxation does not apply (Notification 33/2026-27) | Gems and Jewellery sector exporters |
| Individual freelancer without an IEC | No | An IEC on the date of application is a condition of eligibility (FTP para 1.25(b)) | Freelancers deciding whether status certification is relevant at all |
How does an exporter get DGFT status holder certification?
An exporter gets DGFT status holder certification by filing an online application in ANF 1B with the jurisdictional Regional Authority, along with the prescribed documents (HBP para 1.08). Before applying, the exporter checks the category threshold, the years of export performance and any double weightage.
- Confirm that the firm holds an active IEC, since eligibility is tested on the date of application (FTP para 1.25(b)). See how to apply for an IEC code.
- Add up FOB export earnings for the current and preceding three financial years, or the current and preceding two years for Gems and Jewellery (FTP para 1.25(b)).
- Check that there was export performance in each of the three preceding financial years. For One Star status outside Gems and Jewellery, any two of the three preceding years are enough from 21 August 2026 (Notification 33/2026-27).
- Apply double weightage for One Star status where the firm qualifies, counting each shipment or service only once (FTP para 1.27).
- Compare the total with the thresholds of USD 3, 15, 50, 200 and 800 million (FTP para 1.26).
- File ANF 1B online on the DGFT portal with the Regional Authority where the registered office (company) or head office (other entities) is located (HBP para 1.08(b)).
- After the grant, keep true and proper accounts of the exports and imports used for recognition for two years from the date of grant (HBP para 1.10).
Which exports count towards the DGFT status holder threshold?
Exports count at FOB value of export earnings in freely convertible currency or in rupees where allowed (FTP para 1.25(b)). Some exports are excluded or treated specially under FTP para 1.28.
- Deemed exports count at FOR value in rupees, converted to USD at the CBIC rate applicable on 1 April of each financial year (FTP para 1.25(c)).
- Exports made on re-export basis are not counted (FTP para 1.28(b)).
- Export performance cannot be transferred from one IEC holder to another, so disclaimers are not allowed (FTP para 1.28(a)).
- Exports of items under Authorisation, including SCOMET items, are included (FTP para 1.28(c)).
How does double weightage work for One Star Export House status?
Double weightage means certain exports are counted twice when calculating performance, and it applies only to One Star Export House status (FTP para 1.27(a)). A shipment or service gets double weightage only once, even if the exporter fits more than one category (FTP para 1.27(b)).
- Micro and Small Enterprises as defined in the MSMED Act, 2006.
- Manufacturing units having ISO or BIS certification.
- Units located in the North Eastern States including Sikkim, and in the Union Territories of Jammu, Kashmir and Ladakh.
- Export of fruits and vegetables under Chapters 7 and 8 of ITC HS.
How does an exporter upgrade to a higher DGFT status holder category?
An exporter that reaches a higher threshold may upgrade at its discretion by surrendering the existing certificate and applying again in ANF 1B (HBP para 1.09(c)). The new certificate then carries its own 5-year validity from the new application date (HBP para 1.09(b)).
What are the DGFT status holder export thresholds and benefits for each category?
The DGFT status holder thresholds run from USD 3 million for One Star to USD 800 million for Five Star Export House (FTP para 1.26). Most privileges in FTP para 1.29 apply to every status holder, while a few start at Two Star or Three Star.
| Status category | Export threshold (USD million) | Extra privileges or duties at this level | Best for |
|---|---|---|---|
| One Star Export House | 3 | Core privileges in FTP para 1.29; double weightage and the two-of-three-years rule apply only here (FTP para 1.27, Notification 33/2026-27) | Growing exporters, including MSEs using double weightage |
| Two Star Export House | 15 | May set up Export Warehouses under Department of Revenue guidelines (FTP para 1.29(e)); expected to train 5 people a year (FTP para 1.30) | Mid-sized exporters planning an Export Warehouse |
| Three Star Export House | 50 | Manufacturer status holders can self-certify origin of their goods for trade agreements (FTP para 1.29(g)); 10 trainees a year | Manufacturers exporting under FTAs and CEPAs |
| Four Star Export House | 200 | Same as Three Star; 20 trainees a year | Large exporting groups |
| Five Star Export House | 800 | Same as Three Star; 50 trainees a year | The largest exporters |
What happens if a DGFT status holder breaks the conditions of the status certificate?
If a DGFT status holder breaks the conditions, the Regional Authority may refuse, suspend or cancel the status certificate (HBP para 1.11). The status holder must get a reasonable opportunity before any such action.
- Export obligation: Failing to discharge an export obligation imposed on the status holder.
- Tampering: Tampering with Authorisations.
- Misrepresentation: Misrepresenting, or being party to a corrupt or fraudulent practice, to obtain an Authorisation.
- Legal breach: Breaching the FT (D&R) Act, the FTP, the Customs Act 1962, the Central Excise Act 1944, FEMA 1999, COFEPOSA 1974 or the Central or State GST Acts (HBP para 1.11(d)).
- Information: Failing to furnish information required by DGFT.
- Unrealised exports: Separately, an exporter who fails to realise export proceeds within the RBI time limit is liable to return FTP benefits availed on those exports (FTP para 2.54(a)).
An applicant not satisfied with a decision to suspend or cancel the certificate may appeal to DGFT within 45 days, and the DGFT decision is final (HBP para 1.12). Keeping export realisation and EDPMS entries up to date with your AD bank lowers the risk of a FEMA breach being cited.
Which DGFT and RBI rules govern DGFT status holder certification?
DGFT status holder certification is governed by paras 1.25 to 1.30 of the Foreign Trade Policy 2023 and paras 1.08 to 1.12 of the Handbook of Procedures 2023. RBI rules do not grant status. They still govern how the export payments behind the status are declared and realised.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| Foreign Trade Policy 2023, Chapter 1 | Paras 1.25 to 1.28 | In force from 1 April 2023 | Eligibility, thresholds, double weightage and which exports count | Checking whether a firm qualifies |
| DGFT Notification 33/2026-27 | Para 1.25(d) proviso | 21 August 2026 | One Star status (except Gems and Jewellery) needs export performance in any two of the three preceding financial years | Exporters with a gap year |
| Foreign Trade Policy 2023, Chapter 1 | Paras 1.29 and 1.30 | In force from 1 April 2023 | Privileges of status holders and the skilling and mentorship expectation | Understanding benefits |
| Handbook of Procedures 2023, Chapter 1 | Paras 1.08 to 1.12 | Part of HBP 2023 | ANF 1B application, 5-year validity, record keeping, cancellation and appeal | Applying and staying compliant |
| Foreign Trade Policy 2023, Chapter 2 | Paras 2.53 and 2.54 | In force from 1 April 2023 | Rupee realisations can count for FTP benefits; unrealised exports can lead to recovery of benefits | Exporters invoicing in INR |
| FEMA (Export and Import of Goods and Services) Regulations, 2026 | Regulation 5 | Notified 13 January 2026, in force from 1 October 2026 | Export value must be realised within nine months of shipment or invoice, with a longer period for rupee trade | Every exporter, status holder or not |
What are common mistakes exporters make about DGFT status holder certification?
- Freelancer assumption: Assuming every freelancer or small service exporter needs status certification. Certification is optional recognition, and the entry threshold is USD 3 million of export performance.
- Missing IEC: Applying without an IEC in place on the application date (FTP para 1.25(b)). See what is an IEC code.
- Wrong weightage: Claiming double weightage for Two Star or higher. Double weightage applies only to One Star Export House (FTP para 1.27(a)).
- Counting twice: Counting the same shipment twice because it fits two double weightage categories, which FTP para 1.27(b) does not allow.
- Borrowed exports: Adding exports made under a related firm's IEC through a disclaimer, which FTP para 1.28(a) bars.
- Old certificate: Relying on a status certificate issued under FTP 2015-20, which lapsed after 30 September 2023 (HBP para 1.09(a)).
- Banking channel: Reading the exemption from compulsory negotiation of documents as permission to receive money outside banks. Remittances must still come through banking channels (FTP para 1.29(d)).
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Foreign Trade Policy 2023, Chapter 1: Legal Framework and Trade Facilitation (DGFT), Paras 1.25 to 1.30 (status holder certification, categories, double weightage, conditions, privileges, skilling) (checked 8 Oct 2026)
- Handbook of Procedures 2023, Chapter 1 (DGFT), Paras 1.08 to 1.12 (ANF 1B application, validity, records, refusal or cancellation, appeal) (checked 8 Oct 2026)
- DGFT Notification No. 33/2026-27: Amendment in Para 1.25 of the Foreign Trade Policy, 2023, 21 August 2026, Para 1.25(d) proviso: One Star on two of three preceding years (checked 8 Oct 2026)
- Foreign Trade Policy 2023, Chapter 2: General Provisions regarding Imports and Exports (DGFT), Paras 2.53 and 2.54 (rupee realisations, non-realisation of export proceeds) (checked 8 Oct 2026)
- RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB, amended up to 22 September 2026), Regulation 5 (time period for realisation of exports) (checked 8 Oct 2026)
Frequently asked questions
What is the export threshold for One Star Export House status under FTP 2023?
The One Star Export House threshold is USD 3 million of export performance under FTP para 1.26. Micro and small enterprises, ISO or BIS certified manufacturers, units in listed regions and fruit and vegetable exporters get double weightage towards this category only. From 21 August 2026, export performance in any two of the three preceding years is enough.
Can a service exporter get DGFT status holder certification?
Yes. FTP para 1.25(b) makes exporters of goods, services and technology eligible if they hold an IEC on the application date. Service exporters are measured on the same USD thresholds as goods exporters. Export earnings are counted at FOB value in freely convertible currency, or in rupees where para 2.53 permits.
Which form is used to apply for a DGFT status certificate?
The DGFT status certificate application is filed online in ANF 1B along with prescribed documents, under HBP para 1.08. It goes to the jurisdictional Regional Authority. For a company this is decided by the registered office location, and for other entities by the head office, as listed in Appendix 1A.
How long is a DGFT status holder certificate valid?
A DGFT status holder certificate issued under FTP 2023 is valid for 5 years from the date on which the application for recognition was filed, as set out in HBP para 1.09(b). A firm reaching a higher category can surrender the certificate and apply again for the upgraded status.
Do DGFT status holders still have to realise export proceeds through banks?
Yes. Status holders are exempt from compulsory negotiation of documents through banks, but FTP para 1.29(d) says remittances and receipts must still come through banking channels. The realisation period under Regulation 5 of the FEMA 2026 export regulations also applies. See export realisation period.
What free of cost export limit applies to DGFT status holders?
Status holders may export freely exportable items free of cost for export promotion up to Rs 1 crore a year or 2% of average annual export realisation over the preceding three licensing years, whichever is lower (FTP para 1.29(h)). Gems, jewellery and precious metal articles are excluded, and separate limits apply to pharmaceuticals.
How many trainees does a Two Star Export House status holder take each year?
Under FTP para 1.30, a Two Star Export House endeavours to train 5 people a year in international trade. The numbers rise to 10 for Three Star, 20 for Four Star and 50 for Five Star. The training details and selection are at the status holder's discretion.