DGFT UPDATE — AUGUST 21, 2026
There’s a government recognition that most exporters either don’t know about or assume is out of reach. It’s called the Star Export House status — and if your business exports goods, services, or technology internationally, getting this certificate can quietly save you lakhs every year in bank guarantee costs, customs delays, and working capital charges.
The government just made the first rung of the ladder easier to climb. But before we cover what changed, let’s lay out the entire scheme from scratch — because the full picture is what makes this worth your time.
What Is a Star Export House?
The Star Export House scheme — officially called the Status Holder Scheme under the Foreign Trade Policy (FTP) — is India’s way of recognising consistent export performers and rewarding them with real operational privileges.
Think of it this way: if two exporters walk into a bank asking for pre-shipment credit, or approach customs with an EPCG authorisation, the one with a Star Export House certificate gets treated differently. Priority processing, bank guarantee waivers, faster customs clearance — these aren’t just perks on paper. They directly affect your working capital cycle and port turnaround time.
DGFT administers the scheme. Recognition is based on your FOB (Free on Board) value of merchandise exports, FOR (Free on Rail) value of deemed exports, and the FOB equivalent of service exports — aggregated over an assessment window tied to the current and preceding financial years.
The Five Categories — Who Qualifies for What
Under FTP 2023, there are five tiers. The thresholds below represent aggregate export performance across the assessment period — not annual figures.
| Status | FOB/FOR Threshold | INR Approx. | Key Extra Privilege |
|---|---|---|---|
| ⭐ One Star | USD 3 million | ≈ ₹25 Crore | BG waiver, priority clearance, credit preference |
| ⭐⭐ Two Star | USD 25 million | ≈ ₹208 Crore | + Export Warehouses abroad |
| ⭐⭐⭐ Three Star | USD 100 million | ≈ ₹833 Crore | + Self-certify origin under FTAs (manufacturers) |
| ⭐⭐⭐⭐ Four Star | USD 500 million | ≈ ₹4,167 Crore | + Priority authorisation processing |
| ⭐⭐⭐⭐⭐ Five Star | USD 2,000 million | ≈ ₹16,667 Crore | + National recognition & institutional engagement |
You don’t need to hit USD 3 million every year. The assessment looks at your cumulative export performance across the current financial year plus preceding years. So if you exported USD 1.5M in FY 2024-25 and USD 1.7M in FY 2025-26, you already cross the One Star threshold.
What DGFT Changed in August 2026
Old rule: One Star Export House applicants needed export performance in all three preceding financial years.
New rule: Performance in any two of the three preceding financial years is now sufficient.
If your exports dipped in one year — lost a key buyer, freight disruption, sector headwinds — that one gap no longer disqualifies you.
This is a sensible fix. Export performance doesn’t follow a straight line, especially for small and mid-sized exporters. A single disrupted year used to wipe out your eligibility completely. That’s now corrected.
The gems and jewellery sector is excluded from this change — but not penalised. That sector already operates under a more favourable two-year lookback under FTP 2023. The August 2026 amendment doesn’t touch their rules.
The Benefits — What You Actually Get
Available to All Status Holders (One Star and Above)
Bank Guarantee Waiver
100% exemption from bank guarantees under Advance Authorisation and EPCG schemes. On an EPCG authorisation worth ₹5 crore, BG commission alone is ₹5–10 lakh per year. Saved.
Priority Customs Clearance
Imports and exports processed on self-declaration basis with fewer checks. Consignments move faster. Port dwell time drops — especially valuable at JNPT, Mundra, and Chennai.
Preferential Bank Credit
Banks offer preferential pre- and post-shipment credit terms. Typical rate advantage: 25–75 basis points. On ₹2 crore working capital that’s ₹50,000–₹1.5 lakh saved per year.
Faster SION Fixation
Standard Input Output Norms fixed within 60 days for status holders — versus months in the general queue. Critical for Advance Authorisation users.
Two Star and Above
Can establish Export Warehouses abroad — pre-positioning inventory in key markets without shipping against individual orders.
Three Star and Above — The FTA Advantage
Who Should Apply (and Isn’t)
The exporters most likely to benefit — but who often skip applying — are small and mid-sized manufacturer-exporters. They hesitate because USD 3 million sounds large. Do the math in rupees: that’s roughly ₹25 crore at current rates. If your business ships ₹25 crore or more per year across any two of the last three years, you almost certainly qualify right now.
Service exporters (IT, consulting, architecture, legal services) are similarly underrepresented — despite FTP 2023 explicitly including FOB-equivalent service exports in the performance calculation.
How to Apply — Step by Step
Log in to DGFT Portal
Go to dgft.gov.in. Log in using your Digital Signature Certificate (Class 2 or 3) or Aadhaar-based e-Sign linked to your IEC.
Navigate to Status Holder Application
Services → Exporter Services → Apply for Status Holder Certificate → “Start fresh application.”
Fill ANF 3C
Enter IEC details, RCMC, and export performance data year-wise. For the new rule, clearly indicate performance for the two qualifying years.
Upload Documents
IEC copy · CA-certified export performance statement (shipping bill-wise or FIRC-wise for services) · RCMC · PAN of the entity. Self-certified copies accepted.
Sign and Submit
DSC-sign, submit, and note your file number. DGFT typically processes clean applications within a few working days. Certificate is issued digitally.
The RCMC Requirement
You need a valid RCMC from your Export Promotion Council before applying — AEPC for apparel, EEPC India for engineering goods, Pharmexcil for pharma, FIEO for service exporters.
Renewal — Plan for It
Star Export House certificates are not permanent. Renewal requires continued export performance at or above the threshold. If your exports dip in a renewal cycle, you lose status — and with it, the EPCG bank guarantee exemption you’ve been relying on. Build this into your annual export planning.
⚡ Quick Reference
| Scheme | Status Holder Scheme under FTP 2023 |
| One Star threshold | USD 3 million (≈ ₹25 crore) |
| New eligibility rule | Any 2 of 3 preceding financial years (w.e.f. 21 Aug 2026) |
| Gems & jewellery | 2 preceding years — unchanged |
| Key benefit (all tiers) | 100% BG waiver on EPCG + Advance Auth, priority customs, preferential credit |
| 3-star additional | Self-certify FTA origin — manufacturer exporters |
| Application form | ANF 3C on DGFT portal — fully online, DSC required |
| Key document | CA-certified export performance statement |
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