Status Holder Scheme: Thresholds, Privileges and Double Weightage

Status Holder Scheme 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.

FTP 2023 cut the thresholds sharply — Three Star from USD 100 million to 50, Four Star from 500 to 200, Five Star from 2000 to 800. What it did not change is the one relief that helps smaller exporters most, and which stops dead at the first rung: double weightage applies to One Star only.

"All exporters of goods, services, and technology possessing an IEC number are eligible for recognition as a status holder." Recognition depends on export performance during the current and preceding three financial years — two out of four years — with the Gems and Jewellery Sector assessed on the current and preceding two. Double weightage is available "for grant of One Star Export House Status category only", and "a merchandise shipment / service rendered can get double weightage only once."

The thresholds under FTP 2023

The reductions were substantial. Two Star fell from 25 to 15, Three Star from 100 to 50, Four Star from 500 to 200, and Five Star from 2000 to 800 — only One Star was unchanged at 3.

And the performance window is generous. "An applicant will be categorized as a status holder upon achieving export performance during the current and preceding three financial years" — with the operative rule that "For granting status, export performance is required in at least two out of four years."

Two out of four is a real relief. A cyclical exporter with two strong years and two weak ones still qualifies, provided the threshold is met in two of them.

Double weightage: four categories, one rung, one use

Where it applies. "Double Weightage shall be available for grant of One Star Export House Status category only. Such benefit of double weightage shall not be admissible for grant of status recognition of other categories namely Two Star, Three Star, Four Star and Five Star Export House."

Who gets it — exports by IEC holders in four categories:

• (i) Micro and Small Enterprises as defined in the MSMED Act, 2006;
• (ii) Manufacturing units having ISO/BIS;
• (iii) Certification Units located in North Eastern States including Sikkim, and the Union Territories of Jammu, Kashmir and Ladakh;
• (iv) Export of fruits and vegetables falling under Chapters 7 and 8 of ITC HS.

And it cannot be stacked. "A merchandise shipment / service rendered can get double weightage only once in any one of above categories." An MSE with ISO certification in Sikkim exporting vegetables still counts each shipment twice, not sixteen times.

The design is deliberately entry-level. Double weightage halves the effective threshold for a first-time status holder — USD 1.5 million of actual exports reaching the USD 3 million mark — while leaving the higher categories on real numbers.

Three conditions that limit the count

No transfer between IEC holders. "Export performance of one IEC holder shall not be permitted to be transferred to another IEC holder. Hence, calculation of exports performance based on disclaimer shall not be allowed."

Re-exports do not count. "Exports made on re-export basis shall not be counted for recognition."

Authorised exports do count, including controlled goods. "Export of items under Authorization, including SCOMET items, would be included for calculation of export performance." SCOMET →

The first condition closes the disclaimer route that was historically used to aggregate a group's exports under one entity. Each IEC stands on its own performance.

The eight privileges

• Self-declaration — "Authorisation and Customs Clearances for both imports and exports may be granted on self-declaration basis."
• Priority norms fixation — "Input-Output norms may be fixed on priority within 60 days by the Norms Committee", with a special SION scheme to be notified for specified status holders.
• No bank guarantee — "Exemption from furnishing of Bank Guarantee for Schemes under FTP, unless specified otherwise." This is the exemption that removes the 15% bank guarantee otherwise required under EPCG. EPCG →
• No compulsory bank negotiation — "Exemption from compulsory negotiation of documents through banks. Remittance / receipts, however, would be received through banking channels."
• Export warehouses — "Two star and above Export houses shall be permitted to establish Export Warehouses as per Department of Revenue guidelines."
• Priority handling — "entitled to preferential treatment and priority in handling of their consignments."
• Self-certified origin — "Manufacturers who are also status holders (Three Star/Four Star/Five Star) will be enabled to self-certify their manufactured goods as originating from India" for preferential treatment under PTAs, FTAs, CECAs and CEPAs.
• Free-of-cost exports for promotion — "entitled to export freely exportable items (excluding Gems and Jewelry, Articles of Gold and precious metals) on free of cost basis for export promotion, subject to an annual limit of ₹1 crore or 2% of average annual export realization during preceding three licensing years, whichever is lower."

Note the tiering. Export warehouses need Two Star; self-certified origin needs Three Star. The rest are available from One Star.

The obligation that comes with status

"To improve the trade ecosystem by enhancing the available skilling opportunities, Status Holders are being made 'partners' in providing mentoring and training in international trade."

"A model training program of a minimum duration of 6 weeks would be put up in public domain for guidance", and "Detailed eligibility requirements, selection criteria, training curriculum etc. will be at the discretion of the Status Holder."

One Star houses carry no training obligation — the ladder of privileges and the ladder of obligations both begin at Two Star.

Applying

Path on the DGFT portal: "Services > Certificate Management > Apply Certificate", then "Click on Status Holder Certificate."

No fee. "There is no Application fee."

Values are auto-populated. "The values of export is auto-populated based on the turnover details as updated in the IEC Profile. Hence, it is important to update your IEC Profile before applying." IEC and the annual update →

No extension, no amendment. "The validity of the Status holder certificate cannot be extended", and "No modifications/amendments are permitted" — in either case, "file for issuance of a fresh Status Holder Certificate."

The mandatory attachments:

• Certificate of Exports where Double Weightage has been claimed (only for One Star applications) — Format A;
• Certificate of Foreign Exchange Earned by Supply of Service — Format B;
• Certificate of FOR value of Deemed Exports — Format C;
• Exports from SEZs / EOUs / EHTPs / STPs / BTPs included in the IEC and counted for status — Format D;
• Annexure to ANF 3C.

Formats C and D confirm two useful points. Deemed exports count towards status, and so do exports from SEZ, EOU and technology park units included in the IEC.

Key takeaways

• Thresholds under FTP 2023: One Star 3, Two Star 15, Three Star 50, Four Star 200, Five Star 800 USD million.
• Performance is assessed over the current and preceding three financial years, with the threshold met in at least two out of four; Gems and Jewellery on two preceding years.
• Double weightage applies to One Star only, for MSEs, ISO/BIS units, North-Eastern and J&K/Ladakh units, and fruits and vegetables (ITC HS Chapters 7 and 8) — and only once per shipment.
• No disclaimer-based transfer of performance between IEC holders; re-exports do not count; SCOMET and authorised exports do.
• Privileges include self-declaration clearances, 60-day priority norms, bank guarantee exemption, export warehouses (Two Star+), self-certified origin (Three Star+), and free-of-cost promotional exports up to ₹1 crore or 2% of average realisation, whichever is lower.
• Training obligations run 5 / 10 / 20 / 50 trainees a year for Two to Five Star, with a six-week model programme.
• No application fee; values auto-populate from the IEC profile; the certificate cannot be extended or amended — apply afresh.

Read next

• EPCG Scheme: Six Times Duty Saved, and the Average Export Obligation
• IEC, RCMC and the DGFT–Customs–RBI Interlinking
• Deemed Exports: FTP Para 7.02 Against Notification No. 48/2017

Disclaimer: Positions stated as on 5 September 2026, based on Chapter 1 and the Status Holder provisions of the Foreign Trade Policy 2023, Form ANF 3C and the MSMED Act, 2006, as reproduced in the ICAI Handbook on Foreign Trade Policy – Incentives, Schemes & Related FAQs (November 2025, 2nd Edition).