Chapter3 Promotional measures

06 September 2004

An existing status holder shall be automatically treated to be an equivalent star export house as per the table given herein under:

Erstwhile status under Exim Policy 2002-07	Converted Status as per the Foreign Trade Policy 2004-09
Export House	One Star Export House
Trading House	Three Star Export House
Star Trading House	Four Star Export House
Super Star Trading House	Five Star Export House

However, any exporter irrespective of whether he is a status holder or not can apply afresh in Appendix 17 or Appendix 17 A for grant of status or upgradation of his existing status.

3.2.1

Application for grant/ renewal of certificate for One to Five Star Export House shall be filed with the concerned regional licensing authority headed by Joint DGFT. Provided further that, application for grant/ renewal of status certificate in respect of EOU/ SEZ units, shall be filed with the concerned Development Commissioner if it does not involve clubbing of FOB value of exports of its other company(ies) in the DTA. However in case of clubbing, the application shall be filed with Joint DGFT.

3.2.2

Such application shall be made by the Registered Office/Head Office/Corporate Office in the case of a Company and Head Office in case of others. Where the applicant is the Registered Office/Head Office/Corporate Office in case of a Company, it shall furnish (a) Self certified copy of valid RCMC where the name of the Registered Office or Head Office or Corporate Office is given and (b) A disclaimer from the Head Office and Corporate Office (or Registered Office and Corporate Office or Registered Office and Head Office as the case may be) that no such application has been filed by the Company earlier against the period of entitlement for the status certificate.

3.2.3

The application for grant of status certificate in the case of non service providers mandates the submission of a "Bank Certificate of Export Realisation/ Deemed Exports for Status Certificate" as given in Appendix-17B.

Target Plus Scheme

3.2.5

The Policy for the Target Plus Scheme is given at Chapter 3 of the Foreign Trade Policy

I.	For direct as well as third party exports, the Export documents viz Export Order, Invoice, GR form, Bank Realization Certificate should be in the name of applicant only. However for the third party exports, where goods have been procured from a manufacturer, the shipping bill should contain the name of the exporter as well as the supporting manufacturer.
II.	Goods allowed to be imported under this scheme shall have a broad nexus with the products exported and a declaration in this regard shall be made by the applicant in Appendix 17D.
III.	The licensing authority shall at the time of issuance of the duty credit entitlement certificate endorse the name of the associate manufacturer/ supporting manufacturer/job worker on the certificate as declared by the applicant. Goods imported against such entitlement certificate shall be used by the applicant or his supporting manufacturer/ job worker.
IV.	The last date for filing of such applications shall be 31st December.
V.	For each duty credit certificate, split certificates subject to a minimum of Rs 5 lakh each and multiples thereof may also be issued. A fee of Rs 1000/- each shall be paid for each split certificate. However, a request for issuance of split certificate(s) shall be made at the time of application only and shall not be considered at a later stage.
VI	The duty credit certificate shall normally be issued with a single port of registration. However the applicant may choose for different ports of registration for each split certificate.
VII	The duty credit certificate shall be valid for a period of 24 months from the date of issue
VIII	The applicants shall within one month of the last imports made under this certificate or within one month of expiry of the certificate which ever is earlier, submit a statement of imports/ utilization made under the certificate as per Appendix 17E, to the jurisdictional Regional Licensing Authority who have issued the Certificate with a copy to the jurisdictional Excise authorities.

Maintenance of Accounts

3.3

The status holder shall maintain true and proper accounts of its exports and imports based on which such recognition has been granted and the exports and imports made during the validity period of such recognition certificate. The record shall be maintained for a minimum period of three years from the expiry of the validity of such certificate. These accounts shall be made available for inspection to the licensing authority or any authority nominated by the Director General of Foreign Trade.

Refusal/ Suspension/ Cancellation of Certificate

3.4

The status certificate may be refused or suspended or cancelled by the authority which is competent to issue/renew such certificate, if the certificate holder/ applicant or any agent or employee acting on his behalf:

(a)	Fails to discharge the export obligation imposed;
(b)	Tampers with licences;
(c)	Misrepresents or has been a party to any corrupt or fraudulent practice in obtaining any licence;
(d)	Commits a breach of the Foreign Trade (Development and Regulation) Act, 1992, or the Rules and Orders made there under; or
(e)	Fails to furnish the information required by the Director General of Foreign Trade or any person or authority authorized by him.

3.4.1

A reasonable opportunity shall be given to the status holder before taking any action under paragraph 3.4 of Handbook.

Appeal

3.5

An applicant who is not satisfied with the decision taken to suspend or cancel the certificate, may file an appeal to the Director General of Foreign Trade within 45 days of the date of the said decision. The decision of the DGFT shall be final.

Export Promotion Council

3.6

The general policy relating to the Export Promotion Councils (EPCs) is given in Chapter-2 of the Policy. A list and product category of Export Promotion Councils/ Commodity Boards is given in Appendix- 27.

3.7

The major functions of the EPCs are:

(a)	To provide commercially useful information and assistance to their members in developing and increasing their exports;
(b)	To offer professional advice to their members in areas such as technology up gradation, quality and design improvement, standards and specifications, product development, innovation etc;
(c)	To organise visits of delegations of its members abroad to explore overseas market opportunities;
(d)	To organise participation in trade fairs, exhibitions and buyer-seller meets in India and abroad;
(e)	To promote interaction between the exporting community and the Government both at the Central and State levels; and
(f)	To build a database on the exports and imports of their members.

Non-Profit, Autonomous and Professional Bodies

3.8

The EPCs are non-profit organizations registered under the Companies Act or the Societies Registration Act, as the case may be.

3.9

The EPCs shall be autonomous and regulate their own affairs. However, if the Central Government frames uniform bylaws for the constitution and/or for the transaction of business for EPCs, they shall adopt the same with such modifications as Central Government may approve having regard to the special nature or functioning of such EPC.

The EPCs shall not be required to obtain the approval of the Central Government for participation in trade fairs, exhibitions etc. and for sending sales teams/delegations abroad.