Groundbreaking initiative set to revamp India’s export landscape was unveiled as Piyush Goyal, the Minister of Commerce and Industry, and Textiles, introduced an Automated Certification system for exporters during a crucial meeting with the Export Promotion Councils.
Under the Foreign Trade Policy (FTP) 2023, exporters will be directly issued ‘Status Holder’ certificates, negating the previous requirement to apply through the Directorate General of Foreign Trade (DGFT). This pivotal decision leverages IT systems to allocate export recognitions, utilizing electronic merchandise export data sourced from the Directorate General of Commercial Intelligence and Statistics (DGCIS) and other relevant risk parameters.
Historically, obtaining this status necessitated exporters to submit an online application supported by an export certificate from a chartered accountant. The reformed approach will ensure that certifications are automatically granted every August, contingent upon annual export metrics provided by the DGCIS.
For exporters confident of qualifying for an elevated status, provisions will be available to modify their status online, factoring in additional data not currently recorded in a disaggregated manner, the ministry of commerce and industry elucidated in a recent media release.
The coveted Status Holder certification augments the stature of Indian exporters on the global stage. Certificate holders are privy to numerous advantages, including streamlined FTP 2023 processes, expedited customs clearances based on self-declarations, and waivers from specific bank guarantees, among other perks.
This transformative measure is projected to accord the Status Holder designation to nearly 20,000 exporters under FTP 2023, marking a significant rise from the erstwhile number of 12,518. The 1 Star category, which mandates an export track record of at least $3 million over the past three fiscal years coupled with the first three months of the ongoing year, is predicted to witness the most substantial uptick in certifications. By casting a wider net, the revamped system seeks to empower a diverse spectrum of smaller exporting firms, propelling India closer to its aspirational export milestone of $2 trillion by the decade’s end.
This initiative harmoniously tunes with the central government’s Digital India mission, emphasizing the seamless integration of digital processes. With the introduction of various e-initiatives, the current administration aspires to grant permissions and accreditations under FTP 2023 rooted in a robust risk management system, exporters’ self-declarations, and most importantly, bypassing cumbersome manual processes.
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