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Star Export House Status Under the Foreign Trade Policy, 2023: Eligibility, the Five Categories, Validity and Cancellation

Any exporter of goods, services or technology holding an Importer Exporter Code on the date of application can be recognised as a status holder (paragraph 1.25(b)). The categories...

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August 26, 2026
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Last updated: August 2026Verified against: Government sources

Star Export House status is the recognition the Foreign Trade Policy, 2023 gives an exporter as a "status holder". The Policy sets five categories in paragraph 1.26, from One Star at USD 3 million of export performance to Five Star at USD 800 million, and the Handbook of Procedures, 2023 sets the application, the validity and the grounds on which a certificate can be taken away. This guide follows the status holder from eligibility to cancellation and points to a separate article for each detail.

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 1 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. If your firm is weighing a status application and wants the export record reviewed first, our legal consultation service can do that.

What status holder recognition is for

Paragraph 1.25(a) of the Policy states the purpose. Certain exporter firms are certified as status holders to recognise them as business leaders who have excelled in international trade and contributed to the country's foreign trade. Status holders are expected not only to contribute to exports but also to guide and handhold new entrepreneurs. The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992; see section 5 of the Act and our note on the Policy against the Handbook.

Who is eligible

Paragraph 1.25(b) opens recognition to all exporters of goods, services and technology who hold an Importer Exporter Code (IEC) on the date of application. Recognition rests on export performance. 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 same threshold must be reached in the current and preceding two financial years.

How export performance is counted

Under paragraph 1.25(b), 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. Paragraphs 2.52 and 2.53 were substituted on 20 August 2026; the chapter file still cites paragraph 2.53 as printed, and our article on paragraphs 2.52 and 2.53 sets out the position. Paragraph 1.25(c) deals with deemed exports: the FOR value in Indian rupees is converted into US dollars at the exchange rate notified by CBIC applicable on 1 April of each financial year.

Paragraph 1.28 adds three conditions:

  • performance of one IEC holder cannot be transferred to another, so calculation of performance based on a disclaimer is not allowed (1.28(a));
  • exports made on a re-export basis are not counted (1.28(b));
  • export of items under an authorisation, including SCOMET items, is included (1.28(c)).

Paragraph 1.27 gives double weightage for One Star only. The exports of micro and small enterprises, of manufacturing units holding ISO or BIS certification, of units in the North Eastern States including Sikkim and in Jammu and Kashmir and Ladakh, and of fruits and vegetables falling under Chapters 7 and 8 of ITC(HS) are counted twice, and one shipment can be doubled only once. The full rule is in our article on paragraphs 1.25 to 1.28.

The years test in paragraph 1.25(d)

The chapter file prints paragraph 1.25(d) as: export performance is necessary in all the three preceding financial years, and in all the two preceding financial years for the gems and jewellery sector.

As notified on 21 August 2026 (Notification No. 33/2026-27), paragraph 1.25(d) carries a proviso: for One Star Export House status, other than for the gems and jewellery sector, export performance in any two out of the three preceding financial years is sufficient. The chapter text consulted on 2 October 2026 still showed the earlier paragraph without that proviso. The Notification says the change is subject to the other provisions of paragraph 1.25.

The five categories

Status categoryExport performance threshold (USD million)
One Star Export House3
Two Star Export House15
Three Star Export House50
Four Star Export House200
Five Star Export House800

These are the figures of paragraph 1.26. The Policy prints no other threshold for any category.

Applying, validity and upgrading

Paragraph 1.08 of the Handbook requires an online application for recognition of status in ANF 1B with the prescribed documents. It is filed with the jurisdictional Regional Authority, determined by the location of the registered office in the case of a company and of the head office in the case of others, as per Appendix 1A.

Paragraph 1.09 deals with validity:

ParagraphWhat it says
1.09(a)A status certificate issued under the 2015-20 Policy remained valid only till 30.09.2023; this is a dated provision that has run its course
1.09(b)A certificate issued under this Policy is valid for 5 years from the date on which the application for recognition was filed
1.09(c)On reaching a higher threshold under paragraph 1.26, a firm can at its discretion upgrade its category after surrendering the previous certificate and applying afresh under paragraph 1.08

Note the starting point in paragraph 1.09(b): the five years run from the filing date of the application, not from the date the certificate is issued. Upgrading is optional.

Accounts, refusal, cancellation and appeal

Paragraph 1.10 of the Handbook requires a status holder to maintain true and proper accounts of the exports and imports on which recognition was granted. The records are to be kept for two years from the date of grant of the certificate and made available for inspection to the Regional Authority or any authority authorised by the DGFT.

Under paragraph 1.11, the Regional Authority may refuse, suspend or cancel a status certificate if the holder or an authorised representative:

  1. fails to discharge an export obligation imposed;
  2. tampers with authorisations;
  3. misrepresents, or is party to a corrupt or fraudulent practice in obtaining any authorisation;
  4. commits a breach of the Foreign Trade (Development and Regulation) Act, the Rules and Orders under it, the Policy, the Customs Act, 1962, the Central Excise Act, 1944, FEMA, COFEPOSA or the Central and State GST Acts; or
  5. fails to furnish information required by the Directorate.

A reasonable opportunity must be given to the status holder before any action. An applicant not satisfied with a decision to suspend or cancel may appeal to the DGFT within 45 days, and the DGFT's decision is final and binding (paragraph 1.12). The Act's own powers over licences are in section 9 of the Act. The Handbook is issued under section 6 of the Act; the procedure is explained further in our article on paragraphs 1.08 to 1.12 of the Handbook.

What a status holder gets

Paragraph 1.29 lists the privileges. In short: authorisations and Customs clearances on self-declaration; input-output norms fixed on priority within 60 days; exemption from furnishing the bank-backed security (BG) that schemes ask for, unless specified otherwise; exemption from compulsory negotiation of documents through banks; export warehouses for Two Star and above; preferential handling of consignments; and self-certification of origin by Three Star, Four Star and Five Star manufacturers. Paragraph 1.30 adds an endeavour to train 5, 10, 20 and 50 trainees a year at Two, Three, Four and Five Star respectively. On the one privilege where the Policy (Rupees One Crore) and the Handbook (Rs.10 lakh, paragraph 2.70) print different annual limits, both are given in our article on paragraphs 1.29 and 1.30. Our companion guide on the status holder thresholds and privileges walks through the numbers.

A practical example

Kaveri Spice Traders, an invented partnership firm with an IEC, exports spices and is not in the gems and jewellery sector. It earned export performance in two of the last three financial years that met the USD 3 million One Star threshold of paragraph 1.26, and none in the third. Under the earlier paragraph 1.25(d) as the chapter file prints it, all three years were needed. Under the proviso notified on 21 August 2026, any two of the three suffice for One Star, subject to the other provisions of paragraph 1.25. Kaveri applies in ANF 1B with its Regional Authority, and if the certificate is granted it is valid for 5 years from the filing date. If it later reaches the USD 15 million threshold it may surrender the certificate and apply for Two Star under paragraph 1.09(c). It cannot count a re-export shipment or borrow a sister firm's exports through a disclaimer.

Need help with a status application?

Counting the right exports in the right years, and keeping records that answer an inspection, are where status applications usually go wrong. If a certificate has been suspended or cancelled and you want to prepare an appeal within the 45 days of paragraph 1.12, our dispute resolution team can assist, and our legal consultation service can review the record before you apply.

Key takeaways

  • Any IEC holder exporting goods, services or technology can be recognised (paragraph 1.25(b)).
  • The categories run from USD 3 million to USD 800 million (paragraph 1.26).
  • One Star can be granted on any two of the three preceding years under Notification No. 33/2026-27, other than for gems and jewellery.
  • A certificate is valid for 5 years from the filing date; upgrading means surrender and a new application (paragraph 1.09 of the Handbook).
  • Cancellation needs a reasonable opportunity first; appeal lies to the DGFT within 45 days (paragraphs 1.11 and 1.12).

Read next

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.

Quick recapKey facts & short answers

Key Facts About Star Export House Status

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What are the Star Export House thresholds under the Foreign Trade Policy, 2023?

Paragraph 1.26 prints USD 3 million for One Star, 15 for Two Star, 50 for Three Star, 200 for Four Star and 800 for Five Star.

How long is a status certificate valid?

A certificate issued under this Policy is valid for 5 years from the date on which the application for recognition was filed (paragraph 1.09(b) of the Handbook).

A clean record is built one small filing at a time, not in the week before an inspection.

— TaxClue Compliance Desk

Star Export House Status: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Paragraph 1.26 prints USD 3 million for One Star, 15 for Two Star, 50 for Three Star, 200 for Four Star and 800 for Five Star.

A certificate issued under this Policy is valid for 5 years from the date on which the application for recognition was filed (paragraph 1.09(b) of the Handbook).

The chapter file of paragraph 1.25(d) says yes: all three preceding years, or all two for gems and jewellery. Notification No. 33/2026-27 of 21 August 2026 adds a proviso letting One Star be granted on any two of the three preceding years, other than for gems and jewellery.

Yes. Paragraph 1.09(c) allows a firm that reaches a higher threshold to upgrade at its discretion after surrendering the previous certificate and applying again under paragraph 1.08.

The Regional Authority may refuse, suspend or cancel on the grounds in paragraph 1.11 of the Handbook, after giving a reasonable opportunity. You may appeal to the DGFT within 45 days (paragraph 1.12).

No. Paragraph 1.28(b) says exports made on a re-export basis are not counted for recognition.