Why Every Export-Oriented Unit Should Aim for a Star Holder Certificate

In today’s highly competitive global market, Indian exporters constantly seek ways to enhance credibility, secure more international orders, and grow their business. One effective yet underutilized strategy is obtaining the Star Holder Certificate issued by the Directorate General of Foreign Trade (DGFT). This certification is a prestigious recognition given by the Government of India to export-oriented units (EOUs) that consistently contribute to India’s export performance.

This article explores why every export-oriented unit should aim for a Star Holder Certificate, the benefits associated with it, and how it can transform your export business.

What is a Star Holder Certificate?

The Star Holder Certificate, also known as the Status Holder Certificate, is awarded to exporters based on their export performance in the current and previous financial years. The recognition is provided under the Foreign Trade Policy (FTP) by the DGFT, Ministry of Commerce and Industry, Government of India.

There are five categories of star ratings:

• One Star Export House
  

• Two Star Export House
  

• Three Star Export House
  

• Four Star Export House
  

• Five Star Export House
  
  

Each level is determined based on the FOB (Free on Board) value of exports made by the unit over a specified number of years.

Why Every Export-Oriented Unit Should Aim for This Certificate

1. Global Recognition and Trust

Having a Star Holder Certificate acts as a mark of quality and consistency. International buyers are more likely to trust and engage with exporters who are government-certified. It boosts your brand's credibility and trustworthiness on a global platform, giving you an edge over competitors.

2. Priority in Customs Clearance

Star Holder Certificate holders enjoy priority customs clearance. This fast-track process ensures minimal delays at ports, helping exporters meet tight delivery deadlines. In a world where timely delivery is crucial, this advantage can be a game-changer for EOUs.

3. Exemption from Filing Bank Realization Certificate (BRC)

Normally, exporters must file BRCs as proof of receipt of foreign exchange. However, Star Holders are exempted from filing BRCs for applications under the Foreign Trade Policy schemes, significantly reducing compliance burdens.

4. Access to Specialized Schemes and Incentives

Certified Star Holders  are eligible for multiple benefits under FTP, such as:

• Reduced export documentation
  

• Increased financial support
  

• Special consideration in schemes like MEIS, SEIS, RoDTEP, etc.
  

• Self-certification of origin of goods (a major advantage in Free Trade Agreements)
  

These benefits translate into cost savings, ease of doing business, and greater export efficiency.

5. Faster Processing of Export Incentives

With your export unit certified as a Star Export House, applications under DGFT schemes such as Advance Authorization or EPCG are processed on a priority basis. This enables your business to get faster approvals and focus more on core operations.

6. Self-Declaration for Export Compliance

Star Holders are permitted to self-certify their products under Certificate of Origin (CoO) requirements. This not only saves time and costs but also empowers exporters to ship goods more efficiently to countries under Free Trade Agreements (FTAs).

7. Enhanced Reputation in Banking and Financial Institutions

A Star Holder Certificate improves your financial reputation. Banks and NBFCs consider certified exporters less risky and more reliable, making it easier to avail loans, export credit, and foreign exchange benefits. In some cases, it also leads to lower interest rates and better financing terms.

8. Preferential Treatment in Global Tenders

Many international procurement tenders require or favor participation from certified or recognized exporters. With a Star Holder Certificate, your EOU stands a better chance of qualifying and winning lucrative global contracts.

9. Support for Product Diversification

As a recognized exporter, your business gets priority support in product and market diversification schemes from the government. This opens new doors in unexplored markets and enhances your export footprint.

10. Increased Brand Equity

Being recognized by the DGFT as a top exporter adds to your brand’s equity and recall value. This intangible benefit can significantly improve customer loyalty, attract partnerships, and open up new international trade opportunities.

Eligibility Criteria for Star Holder Certificate

To be eligible, the applicant must:

• Have an Import Export Code (IEC)
  

• Meet the minimum FOB value of exports (in USD) over 3 years as prescribed under the FTP
  

• One Star: USD 3 million
  

• Two Star: USD 25 million
  

• Three Star: USD 100 million
  

• Four Star: USD 500 million
  

• Five Star: USD 2,000 million
  

Note: Service exporters and units from SEZs (Special Economic Zones) are also eligible.

How to Apply for the Certificate

1. Register on the DGFT portal (https://dgft.gov.in)
   

2. Apply using the ANF 3A form with relevant documents:
   

• IEC Code
  

• CA-certified export turnover statement
  

• RCMC (Registration-Cum-Membership Certificate)
  

3. Pay the required government fees
   

4. Track the status online and receive the certificate upon approval
   

Processing time typically ranges from 7 to 15 working days if all documents are correctly submitted.

Conclusion

Every Export-Oriented Unit, whether small, medium, or large, should strategically aim to become a Star Holder.. The tangible and intangible benefits it brings are immense — from reduced documentation and cost advantages to global recognition and easier compliance.

In today’s competitive export environment, having a Star Holder Certificate is not just an achievement — it's a necessity for growth, sustainability, and long-term success in international trade.

Start planning today to get your EOU certified and unlock a new level of export excellence.