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Corporate Laws Central Ministry of Commerce and Industry Foreign Trade (Development and Regulation) Act, 1992

Trade Notice: Automatic System based issue of Status Holder Certificate (e-SHC) with no requirement of filling any application by the exporter

09-Oct-2023 | Trade Notice No. 28/2023-24

Directorate General of Foreign Trade (DGFT) has introduced a system for the issuance of Status Holder Certificates (SHC). The key points are:

1. Automated Certification: DGFT has developed an IT module to evaluate and certify the export performance of individual companies. This means that the Status Holder Certificate (SHC) will now be electronically generated based on the export data available in the DGCI&S database.

2. Simplified Categorization: Exporters will be classified into five status categories based on their merchandise export figures. This categorization will consider export data from EDI, non-EDI Ports, and SEZ ports, aligning with the eligibility criteria in the Foreign Trade Policy 2023.

3. Application-Free Process: Importantly, exporters will no longer need to submit any application for the SHC. The IT system will automatically generate the e-SHC for a specific status category. This streamlines the process by removing the earlier need for online applications and supporting export performance certificates from Chartered Accountants.

4. Efficient Communication: The e-SHC will be delivered to the exporting entity through their registered email and the customer dashboard on the DGFT portal. This implementation is expected to be in effect by August 15th each year.

5. Data Utilization for Categorization: The categorization of status will rely on the merchandise export performance of the preceding three financial years or the preceding two financial years (specifically for the gems and jewelry sector). Additionally, the three-month export data from April to June of the current financial year will be incorporated.

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