Paragraphs 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraphs 1.25 to 1.28 decide who can be recognised as a status holder (an Export House), how export performance is counted, which category a given performance earns, which exports are counted twice for the One Star category, and what cannot be counted. One sub-paragraph, 1.25(d), was revised by Notification 33/2026-27 of 21 August 2026, and this article gives both texts.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. It also takes in Notification No. 33/2026-27 dated 21 August 2026. The procedure is taken from Chapter 2 of the Handbook of Procedures, 2023 as published on the DGFT website (file of July 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act. For the privileges of a status holder, see our article on paragraphs 1.29 and 1.30.
Any exporter of goods, services or technology with an Importer Exporter Code can be recognised as a status holder on export performance in the current and preceding three financial years (two preceding years for gems and jewellery). The categories run from One Star (USD 3 million) to Five Star (USD 800 million) under paragraph 1.26. Double weightage applies to One Star only. Under the revised paragraph 1.25(d) of 21 August 2026, One Star can be granted on any two of the three preceding financial years, other than for gems and jewellery.
What the Policy says
Paragraph 1.25: eligibility and how performance is counted
An applicant must hold an Importer Exporter Code; if your other registrations, such as the council membership, are not in order, an RCMC registration can be dealt with alongside. Clause (a) states the objective: to recognise exporter firms that have excelled in international trade as business leaders, who are expected to contribute to exports and to guide and handhold new entrepreneurs.
Clause (b) opens eligibility to all exporters of goods, services and technology who hold an Importer Exporter Code (IEC) on the date of application. An applicant may be categorised as a status holder on reaching the threshold export performance in the current and preceding three financial years, as indicated in paragraph 1.26. For the gems and jewellery sector the threshold must be reached in the current and preceding two financial years. Export performance is counted on the basis of FOB value of export earnings in convertible foreign currency or in Indian rupees, "as per para 2.53" of the Policy.
Clause (c) covers deemed exports: the FOR value of exports in rupees is converted into US dollars at the exchange rate notified by CBIC applicable on 1 April of each financial year.
Clause (b) of the copy prints "para 26" where paragraph 1.26 is meant; it is read as paragraph 1.26.
Cross-reference to paragraph 2.53. Clause (b) cites paragraph 2.53 as the chapter file prints it. Paragraphs 2.52 and 2.53 were substituted on 20 August 2026; see our article on paragraphs 2.52 and 2.53.
Paragraph 1.25(d): the revised text and the earlier text
As notified on 21 August 2026 (Notification No. 33/2026-27), paragraph 1.25(d) reads: "For granting status, an export performance would be necessary in all the three preceding financial years (and in all the two preceding financial years for Gems & Jewelry Sector): Provided that for grant of One Star Export House status (other than for Gems & Jewelry Sector), export performance in any two out of the three preceding financial years shall be sufficient." The Notification says the amendment allows One Star status to applicants, other than in the gems and jewellery sector, with export performance in any two out of the three preceding financial years, subject to the other provisions of paragraph 1.25.
The chapter text on the DGFT website consulted on 2 October 2026 still showed the earlier paragraph, which read: "For granting status, an export performance would be necessary in all the three preceding financial years (and in all the two preceding financial years for Gems & Jewelry Sector)." It has no proviso.
Paragraph 1.26: the categories
| Status category | Export performance threshold (USD million) |
|---|---|
| One Star Export House | 3 |
| Two Star Export House | 15 |
| Three Star Export House | 50 |
| Four Star Export House | 200 |
| Five Star Export House | 800 |
Paragraph 1.27: double weightage
Under clause (a), double weightage is available for the One Star category only. It is not admissible for Two Star, Three Star, Four Star or Five Star. Exports by IEC holders in these categories get double weightage in calculating export performance:
- Micro and Small Enterprises as defined in the MSMED Act, 2006;
- manufacturing units having ISO or BIS certification;
- units located in the North Eastern States including Sikkim, and the Union Territories of Jammu and Kashmir and Ladakh; and
- export of fruits and vegetables falling under Chapters 7 and 8 of ITC(HS).
Clause (b): a merchandise shipment or service can get double weightage only once, in any one of these categories. Our article on status holder thresholds, privileges and double weightage is a general guide; the figures to use are those of this paragraph.
Paragraph 1.28: other conditions
(a) Export performance of one IEC holder cannot be transferred to another; calculation of performance based on a disclaimer is not allowed. (b) Exports made on a re-export basis are not counted. (c) Export of items under authorisation, including SCOMET items, is included.
What the Handbook requires
Paragraph 2.75 of the Handbook bears on the ISO limb of double weightage. It says the agencies authorised to grant quality certification are listed in Appendix 2I, and that for ISO 9000 and ISO 14000 series, agencies accredited with the National Accreditation Board for Certification Bodies under the Quality Council of India are deemed authorised under the Policy, the list being on the Council's website and in Appendix 2I. They are classified as Quality Management System and Environmental Management System agencies. An agency wanting enlistment in Appendix 2I applies to the DGFT as per Annexure I to Appendix 2I. Status certificate procedure itself (ANF 1B, validity, refusal, appeal) is in paragraphs 1.08 to 1.12 of the Handbook, explained in a separate article.
A practical example
Deccan Cutlery Co., an invented manufacturing unit with ISO certification, wants One Star status. Its exports in two of the last three financial years met the USD 3 million threshold of paragraph 1.26, counting the ISO-certified manufacturing exports twice under paragraph 1.27; in the third year it had no exports. Under the earlier 1.25(d), all three years would have been necessary. Under the revised text notified on 21 August 2026, any two of the three years suffice for One Star, since the firm is not in the gems and jewellery sector. Deccan must still show performance on the basis stated in paragraph 1.25(b), and the same shipment cannot be doubled twice (paragraph 1.27(b)). If it later applies for Two Star, double weightage is not available.
Need help with status certification?
Status depends on counting the right exports in the right years, and on holding the right registrations when you apply. For help with the registrations that sit alongside it, such as the RCMC, see our RCMC registration service.
Key takeaways
- Any IEC holder exporting goods, services or technology is eligible (paragraph 1.25(b)).
- Performance is counted over the current and preceding three financial years (two preceding years for gems and jewellery).
- Thresholds run from USD 3 million (One Star) to USD 800 million (Five Star).
- Double weightage is for One Star only, in four named classes, once per shipment.
- Notification 33/2026-27 (21 August 2026) lets One Star be granted on any two of the three preceding years, other than for gems and jewellery; the chapter file consulted still printed the earlier text.
Read next
- Paragraphs 1.29 and 1.30: privileges of status holders and skilling obligations
- Paragraphs 1.21 to 1.24: customs facilitation, AEO and Towns of Export Excellence
- Status holder scheme: thresholds, privileges and double weightage
- Section 5 of the Foreign Trade (Development and Regulation) Act, 1992: the foreign trade policy
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.