Status Holder – Amendment in Para 3.20(b) of Foreign Trade Policy 2015-20
No. CLE-HO/POL/CIRCULAR/15-16
June 28, 2016
Members of the Council
Sub: Status Holder – Amendment in Para 3.20(b) of Foreign Trade Policy 2015-20
Dear Member
What is this circular about ?
This circular is about notification of amended Application form (ANF 3 C), which is the application for online filing of Status Certificate.
Details
As per new Foreign Trade Policy 2015-20 notified in April 2015, an applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange, as stated below.
| Status Category | Export PerformanceFOB / FOR (as converted) Value (in US $ million) |
|---|---|
| One Star Export House | 3 |
| Two Star Export House | 25 |
| Three Star Export House | 100 |
| Four Star Export House | 500 |
| Five Star Export House | 2000 |
According to para 3.24 of Foreign Trade Policy 2015-20, the Status Holders shall be eligible for following privileges.
(a) Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis;
(b) Input-Output norms may be fixed on priority within 60 days by the Norms Committee;
(c) Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise anywhere in FTP or HBP;
(d) Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels;
(e) Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines.
(f) Three Star and above Export House shall be entitled to get benefit of Accredited Clients Programme (ACP) as per the guidelines of CBEC (website: http://cbec.gov.in).
(g) The status holders would be entitled to preferential treatment and priority in handling of their consignments by the concerned agencies.
(h) Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods (as per their IEM/IL/LOI) as 71 originating from India with a view to qualify for preferential treatment under different preferential trading agreements (PTA), Free Trade Agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). Subsequently, the scheme may be extended to remaining Status Holders.
(i) Manufacturer exporters who are also Status Holders shall be eligible to self-certify their goods as originating from India as per para 2.108 (d) of Hand Book of Procedures.
(j) Status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh or 2% of average annual export realization during preceding three licencing years whichever is lower.
Export Requirements for becoming Status Holder – Amendment
Para 3.20 of Foreign Trade Policy 2015-20 specifies the export requirements for becoming a Status Holder. However, , DGFT had recently issued a Notification No.04/2015-2020, New Delhi, dated:29 April 2016 (copy enclosed) amending export performance requirements for recognition as a Status Holder. As per this Notification, the criteria for recognition as status holder has been changed w.e.f 01.04.2016 to the exports in the current and previous three financial years from the existing criteria of current and previous two financial years. The amendments are summarized below.
| Existing Paragraph 3.20(b) of FTP 2015-20: | Amended Paragraph 3.20(b) of FTP 2015-20: |
|---|---|
| All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange. | All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition will depend on export performance. An applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years (for Gems& Jewellery Sector the performance during the current and previous two financial years shall be considered for recognition as status holder) as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB of export earning in free foreign exchange. |
Besides, DGFT has recently issued a Public Notice No. 05/2015-20 dated 3rd May 2016 (copy enclosed), notifying the amended ANF 3 C (application for online filing of Status Certificate) by incorporating the export requirement as an applicant shall be categorized as status holder on achieving export performance during the current and previous three financial years.
Members may kindly note the above amendment
Thanks and regards
R. Ramesh Kumar
Executive Director
COUNCIL FOR LEATHER EXPORTS