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.
Paragraph 1.29 lists the privileges of a status holder: self-declaration, priority norms, exemption from Bank Guarantee, direct negotiation of documents, export warehouses, preferential handling, self-certification of origin and exports supplied without charge for promotion. Paragraph 1.30 asks status holders to train a stated number of trainees a year. Paragraph 2.70 of the Handbook carries the exports-without-charge privilege, and its limit differs from the Policy's.
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. 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 who qualifies and the categories, see our article on paragraphs 1.25 to 1.28.
A status holder may get authorisations and Customs clearances on self-declaration, norms fixed on priority within 60 days, and exemption from Bank Guarantee for schemes under the Policy unless specified otherwise (paragraph 1.29). Two Star and above may set up export warehouses. Three Star and above manufacturers may self-certify origin. Paragraph 1.29(h) sets an annual limit for exports supplied without charge at Rupees One Crore or 2%, whichever is lower; Handbook paragraph 2.70 prints Rs.10 lakh or 2%. Both are given below and not reconciled.
What the Policy says
Paragraph 1.29: the privileges
A status holder is eligible for these privileges. If you are building a profile of exporter registrations around them, an RCMC registration is a common companion.
| Clause | Privilege |
|---|---|
| (a) | Authorisation and Customs clearances, for both imports and exports, may be granted on a self-declaration basis |
| (b) | Input-Output norms may be fixed on priority within 60 days by the Norms Committee; a special scheme for specified status holders may be notified by DGFT from time to time |
| (c) | Exemption from furnishing of Bank Guarantee for schemes under the Policy, unless specified otherwise anywhere in the Policy or the Handbook |
| (d) | Exemption from compulsory negotiation of documents through banks; remittances and receipts are still to be received through banking channels |
| (e) | Two Star and above Export Houses may establish Export Warehouses as per Department of Revenue guidelines |
| (f) | Preferential treatment and priority in handling of consignments by the concerned agencies |
| (g) | Self-certification of origin by manufacturers who are Three Star, Four Star or Five Star status holders |
| (h) | Exports without charge for export promotion, with an annual limit |
Clause (g) lets such manufacturers self-certify their goods, as per their IEM, IL or LOI, as originating from India, to qualify for preferential treatment under preferential trading agreements (PTA), trade agreements (FTAs), Comprehensive Economic Cooperation Agreements (CECA) and Comprehensive Economic Partnership Agreements (CEPA). The scheme may later be extended to the remaining status holders. The clause points to paragraph 2.93(e) of the Handbook for how. For the certificate-of-origin side, see our guides on how to get a certificate of origin in India.
Clause (h) is the longest. The paragraph says status holders are entitled to export items that are exportable without an authorisation, supplied without charge for export promotion, subject to an annual limit of "Rupees One Crore or 2%" of average annual export realisation during the preceding three licensing years, whichever is lower. The gems and jewellery sector and articles of gold and precious metals are excluded. For pharma products exported by pharmaceutical companies the annual limit is 2% of the average annual export realisation during the preceding three licensing years. For supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as the UN and WHO-PAHO, and Government health programmes, the annual limit is up to 8% of the average annual export realisation during the same three years. Supplies without charge under this clause are not entitled to Duty Drawback or any other export incentive under any export promotion scheme.
Paragraph 1.30: skilling and mentorship obligations
Status holders are being made "partners" in providing mentoring and training in international trade. They "will endeavour" to provide skill upgradation or training as follows:
| Status | Trainees per year |
|---|---|
| Two Star Export House | 5 |
| Three Star Export House | 10 |
| Four Star Export House | 20 |
| Five Star Export House | 50 |
A model training programme of a minimum duration of 6 weeks will be put in the public domain for guidance (clause (b)). Detailed eligibility, selection criteria and curriculum are at the discretion of the status holder (clause (c)). The verb is "endeavour"; the paragraph prints no penalty and no reporting requirement.
What the Handbook requires
Paragraph 2.70 of the Handbook, under a heading about exports without charge, repeats the privilege in 1.29(h) with these figures: an annual limit of "Rs.10 lakh or 2%" of average annual export realisation during the preceding three licensing years, whichever is lower. For pharma exports, 2% of the annual export realisation during the preceding three licensing years (the Handbook text does not say "average" here, while paragraph 1.29(h) does). For government supplies, and supplies of vaccines and lifesaving drugs to health programmes of international agencies such as the UN and WHO-PAHO, up to 8% of the average annual export realisation during the preceding three licensing years. The same bar applies: no Duty Drawback or other export incentive.
| Item | Policy paragraph 1.29(h) | Handbook paragraph 2.70 |
|---|---|---|
| General limit | Rupees One Crore or 2% of average annual export realisation in the preceding three licensing years, whichever is lower | Rs.10 lakh or 2% of average annual export realisation in the preceding three licensing years, whichever is lower |
| Pharma exports | 2% of the average annual export realisation in the preceding three licensing years | 2% of the annual export realisation in the preceding three licensing years |
| Health programmes | Up to 8% of the average annual export realisation | Up to 8% of the average annual export realisation |
The two texts print different amounts for the same limit. This article gives each with its paragraph number and does not choose between them; the position should be confirmed from the current text of both on the DGFT website before a shipment is sent out on this basis. Gems and jewellery are excluded in the Policy; the Handbook paragraph as held does not repeat that exclusion.
A practical example
Pine Ridge Components, an invented Three Star manufacturer, wants to send product samples to prospective buyers abroad without charge. The items are exportable without an authorisation. Under paragraph 1.29(h) it may do so within the annual limit and, if the supplies are made under this privilege, cannot claim Duty Drawback on them. The company's accountant should work out the limit under each printed figure, since the two texts differ. As a Three Star manufacturer it can also self-certify the origin of its goods for the trade agreements listed in paragraph 1.29(g), following paragraph 2.93(e) of the Handbook. Under paragraph 1.30 it will endeavour to train 10 trainees in a year.
Need help with exporter registrations?
Status privileges sit on top of basic registrations. If your code, council membership or origin documents need attention before you apply for or use status, our team can help with an RCMC registration and the filings around it.
Key takeaways
- Paragraph 1.29 lists eight privileges, from self-declaration and norms within 60 days to export warehouses and self-certification of origin.
- Bank Guarantee is exempted for schemes under the Policy unless the Policy or Handbook specify otherwise.
- The annual limit for exports supplied without charge is Rupees One Crore or 2% in paragraph 1.29(h) and Rs.10 lakh or 2% in Handbook paragraph 2.70; the texts differ.
- Supplies without charge earn no Duty Drawback or other export incentive.
- Paragraph 1.30 asks Two to Five Star holders to train 5, 10, 20 and 50 trainees a year respectively.
Read next
- Paragraphs 1.25 to 1.28: status holder eligibility, categories and double weightage
- Status holder scheme: thresholds, privileges and double weightage
- Handbook paragraphs 1.08 to 1.12: status certificate application, validity and appeal
- 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.