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.
The status holder scheme is spread over six paragraphs of the Foreign Trade Policy, 2023. Paragraph 1.26 fixes the thresholds, paragraph 1.27 gives double weightage to One Star only, paragraph 1.28 says what cannot be counted, paragraph 1.29 lists the privileges and paragraph 1.30 asks status holders to train others. Two points trip readers up: the number of years of performance needed after Notification No. 33/2026-27, and an annual limit for exports supplied without charge that the Policy and the Handbook print differently. This guide states each rule with its paragraph.
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. If you want an export record reviewed for status before you apply, our legal consultation service can help.
The thresholds in paragraph 1.26 are USD 3 million, 15, 50, 200 and 800 for One to Five Star. Double weightage is for One Star only (paragraph 1.27(a)). Performance is counted over the current and preceding three financial years (preceding two for gems and jewellery), and paragraph 1.25(d), as notified on 21 August 2026, lets One Star be granted on any two of the three preceding years, other than for gems and jewellery. Paragraph 1.29(h) of the Policy prints an annual limit of Rupees One Crore or 2% for exports supplied without charge; paragraph 2.70 of the Handbook prints Rs.10 lakh or 2%.
Thresholds: paragraph 1.26
| Category | Export performance threshold (USD million) | Skilling endeavour, trainees a year (paragraph 1.30) |
|---|---|---|
| One Star Export House | 3 | none printed |
| Two Star Export House | 15 | 5 |
| Three Star Export House | 50 | 10 |
| Four Star Export House | 200 | 20 |
| Five Star Export House | 800 | 50 |
Paragraph 1.25(b) makes all exporters of goods, services and technology who hold an Importer Exporter Code on the date of application eligible, on performance in the current and preceding three financial years (current and preceding two for gems and jewellery). The earlier thresholds of previous Policy periods and the thresholds quoted in older notes are not those of paragraph 1.26 and should not be used.
How many years of performance? Paragraph 1.25(d)
The chapter file prints paragraph 1.25(d) as requiring export performance in all the three preceding financial years, and in all the two preceding financial years for the gems and jewellery sector. It does not say "two out of four years" or any similar test.
As notified on 21 August 2026 (Notification No. 33/2026-27), paragraph 1.25(d) reads with 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 shall be sufficient. The chapter text consulted on 2 October 2026 still showed the earlier paragraph. For categories above One Star the proviso does not apply, so all three preceding years remain the test as the paragraph is printed.
Double weightage: paragraph 1.27
Paragraph 1.27(a) says double weightage is available for One Star only and is not admissible for Two, Three, Four or Five Star. The exports by IEC holders in these four classes are counted twice towards performance:
| Class | Paragraph 1.27(a) |
|---|---|
| (i) | Micro and Small Enterprises as defined in the MSMED Act, 2006 |
| (ii) | Manufacturing units with ISO or BIS certification |
| (iii) | Units in the North Eastern States including Sikkim, and in the Union Territories of Jammu and Kashmir and Ladakh |
| (iv) | Export of fruits and vegetables falling under Chapters 7 and 8 of ITC(HS) |
Paragraph 1.27(b) closes a loophole: a merchandise shipment or service rendered gets double weightage only once, in any one of these classes, even if it fits two. Paragraph 2.75 of the Handbook explains the ISO limb: the agencies authorised to grant quality certification are in Appendix 2I, and agencies accredited with the National Accreditation Board for Certification Bodies under the Quality Council of India for ISO 9000 and ISO 14000 series are deemed authorised under the Policy. Our article on paragraphs 1.25 to 1.28 sets out the whole rule.
What cannot be counted: paragraph 1.28
- Performance of one IEC holder cannot be transferred to another, and calculation 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)).
Performance is counted on FOB value of export earnings in convertible foreign currency or in Indian rupees (paragraph 1.25(b)); for deemed exports the FOR value in rupees is converted at the CBIC-notified rate of 1 April of each financial year (1.25(c)).
The privileges: paragraph 1.29
| Clause | Privilege |
|---|---|
| (a) | Authorisations and Customs clearances for imports and exports on a self-declaration basis |
| (b) | Input-output norms fixed on priority within 60 days by the Norms Committee; a special scheme for specified status holders may be notified |
| (c) | Exemption from furnishing the bank-backed security (BG) under schemes of the Policy, unless specified otherwise anywhere in the Policy or the Handbook |
| (d) | Exemption from compulsory negotiation of documents through banks; remittances and receipts still come through banking channels |
| (e) | Two Star and above may establish Export Warehouses as per Department of Revenue guidelines |
| (f) | Preferential treatment and priority in handling of consignments by the agencies concerned |
| (g) | Self-certification of origin by manufacturers who are Three, Four or Five Star status holders, as per paragraph 2.93(e) of the Handbook |
| (h) | Exports without charge for export promotion, up to 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 under preferential trading agreements; the scheme may later be extended to remaining status holders. The origin side is covered in how to get a certificate of origin in India.
Exports without charge: two different limits
The Policy, in paragraph 1.29(h), lets status holders export items exportable without an authorisation (the Policy uses a different one-word label for such items), supplied without charge for export promotion. The annual limit is Rupees One Crore or 2% of average annual export realisation during the preceding three licensing years, whichever is lower; gems and jewellery and articles of gold and precious metals are excluded. For pharma products by pharmaceutical companies the limit is 2% of the average annual export realisation; for supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies and Government health programmes it is up to 8%. Such supplies are not entitled to Duty Drawback or any other export incentive.
Paragraph 2.70 of the Handbook, in the file of July 2026, prints Rs.10 lakh or 2% for the general limit, the same 2% and 8% for the other cases, and the same bar on incentives. The two texts print different amounts. This article gives both and does not choose; check the current text of both before sending a shipment on this basis. The detail is in our article on paragraphs 1.29 and 1.30.
Training duty: paragraph 1.30
Status holders are being made "partners" in mentoring and training in international trade and will endeavour to provide skill upgradation at the numbers in the table above. A model training programme of at least 6 weeks is to be put in the public domain, and eligibility, selection and curriculum are left to the status holder (1.30(b), (c)). The paragraph prints no penalty.
Certificate, validity and cancellation
The application, the 5-year validity from the filing date, the upgrade route and the grounds for refusal, suspension or cancellation are in paragraphs 1.08 to 1.12 of the Handbook. They are covered in our guide to Star Export House recognition and in the article on Handbook paragraphs 1.08 to 1.12. The Policy is made under section 5 of the Foreign Trade (Development and Regulation) Act, 1992.
A practical example
Brahmaputra Tea Exports, an invented firm in a North Eastern State, is a Micro and Small Enterprise under the MSMED Act, 2006 and also holds ISO certification for its factory. Its shipments of tea are counted twice for the One Star calculation under paragraph 1.27(a), but because each shipment gets double weightage only once, the fact that it fits two classes gives no extra credit (1.27(b)). Its performance was enough in two of the last three years. As it is not in the gems and jewellery sector, One Star can be considered under the proviso notified on 21 August 2026. If it later targets Two Star, no double weightage applies, and all three preceding years are needed as the paragraph is printed.
Need help with status holder planning?
Choosing which exports to count, and in which year, decides the category you can reach. Our legal consultation service can review your export record against paragraphs 1.25 to 1.28, and our dispute resolution team can assist if a certificate is refused or cancelled.
Key takeaways
- Thresholds are USD 3, 15, 50, 200 and 800 million (paragraph 1.26).
- Double weightage is for One Star only, once per shipment (paragraph 1.27).
- One Star can be granted on any two of the three preceding years, other than for gems and jewellery, under Notification No. 33/2026-27.
- The annual limit for exports supplied without charge is printed differently in paragraph 1.29(h) of the Policy and paragraph 2.70 of the Handbook.
- The training numbers in paragraph 1.30 are an endeavour, not a penalised duty.
Read next
- Paragraphs 1.25 to 1.28: status holder eligibility, categories and double weightage
- Paragraphs 1.29 and 1.30: privileges of status holders and skilling obligations
- Paragraphs 1.08 to 1.12 of the Handbook: status certificate, validity and appeal
- Section 5 of the Foreign Trade (Development and Regulation) Act, 1992
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.