Advantages of Status Holder Exporters under the Foreign Trade Policy

Advantages of Status Holder Exporters

Status Holder Exporters, as recognized under the Foreign Trade Policy (FTP), enjoy numerous benefits aimed at boosting exports and enhancing global competitiveness. These benefits can be grouped into four main categories: Export-Related Benefits, Financial Benefits, Operational Benefits, and Import Benefits.

---

1. Export-Related Benefits

• Faster Customs Clearances: Priority customs clearance for quicker export processing.
• Exemption from Bank Guarantee: Reduced financial burden by waiving bank guarantees for various obligations.
• Self-Certification of Goods: Allows self-certification for export compliance, reducing dependency on third-party inspection.
• Exemption from EDF Submission: For free-of-cost exports subject to specified limits.
• Higher Duty Credit Scrips: Enhanced duty credit scrips under export promotion schemes.

---

2. Financial Benefits

• Higher Write-Off Limits: Status holders can self-write-off unrealized export bills up to 10% of total proceeds, compared to 5% for non-status holders.
• Access to Cheaper Credit: Easier access to concessional interest rates for export financing.
• Write-Off of Unrealized Export Bills: Status holders may self-write-off up to 10% of total export proceeds for unrealized export bills if the amount has been outstanding for over a year and the exporter has made reasonable efforts to recover it. The limits apply subject to certain conditions such as:
  • The exporter is a regular customer of the AD Category – I bank for at least six months.
  • The exporter complies with KYC/AML guidelines.
  • The exporter can provide satisfactory documentary evidence showing efforts to recover the dues.

---

3. Operational Benefits

• Direct Dispatch of Documents: Status holders are permitted to dispatch export documents directly to overseas buyers, streamlining logistics. (Non-status holders are not allowed to directly dispatch export documents, as per Master Direction).
• Simplified Compliance: Relaxed procedural compliance under RBI and FTP regulations.

---

4. Import Benefits

C.6. Receipt of Import Bills/Documents

Status Holder Exporters are entitled to special provisions under import regulations, including:

• Direct Receipt of Import Documents: Importers can directly receive bills from overseas suppliers in specific cases such as:

  • Value of import bill not exceeding USD 300,000.
  • Wholly-owned Indian subsidiaries of foreign companies.
  • 100% Export Oriented Units (EOUs), SEZs, PSUs, and Limited Companies.

• Special Provisions for Rough Diamonds and Precious Stones:

  • Status holders can receive import bills directly without any ceiling limits.
  • Subject to prevailing Foreign Trade Policy and compliance checks.
  • Banks must ensure KYC and financial standing of the importer before processing.

C.11. Import of Gold

Status Holders involved in the import of gold must adhere to specific guidelines:

• Permitted to Import Gold: Through nominated banks/agencies or via IIBX (India International Bullion Exchange IFSC Limited).
• Mandatory Compliance: Status holders must comply with the Foreign Trade Policy and RBI guidelines.
• Reporting Requirements: Regular submission of half-yearly and monthly returns under CIMS.
• Restrictions: Import of gold coins and medallions is permitted; however, banks are