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Export House vs. Star Export House: Understanding the Difference

Export House vs. Star Export House: Understanding the Difference

While an Export House serves as the entry-level recognition for businesses meeting a specific export threshold, a Star Export House represents a higher level of achievement, with categories ranging from One Star to Five Star, based on export turnover.

This blog explores the key distinctions of Export House vs. Star Export House, their benefits, and how businesses can aim for these prestigious recognitions to strengthen their position in global markets. 

Whether you’re an emerging exporter or an established player, understanding these certifications can help you unlock new opportunities in the international market.

What is an Export House?

An Export House is a recognition granted by DGFT to businesses that excel in international trade and contribute significantly to India’s exports. It certifies the exporter’s credibility and establishes them as a reliable player in the global market.

Export Houses are expected to lead by example, driving exports and supporting smaller businesses through their expertise. To attain this status, businesses must meet specific export performance criteria and apply for a certification, which provides them access to various benefits and streamlined export processes.

What is Star Export House?

A Star Export House represents a higher level of recognition, awarded to exporters with exceptional export performance. 

Unlike a general Export House, this status is categorised into One Star to Five Star, based on the FOB (Free on Board) value of exports achieved over a fixed period (usually three years).

Sl.No. Status Category Export Performance FOB / FOR (as converted) Value (in US $ million)
1 One Star Export House 3
2 Two-Star Export House 25
3 Three-Star Export House 100
4 Four Star Export House 500 
5 Five Star Export House 2000

Star Export Houses are seen as leaders in India’s global trade landscape, with the highest categories indicating significant contributions to international markets. 

They enjoy additional benefits such as enhanced access to government incentives, greater visibility in global markets, and simplified export processes.

Eligibility and Recognition Process: Export House vs. Star Export House

Aspect Recognition as Export House  Recognition as a Star Export House
Eligibility criteria Minimum export performance required, measured in terms of FOB (Free on Board) value of exports. Higher export performance is required, with thresholds increasing progressively for star
Documentation Provide export turnover details and documents like a Digital Signature Certificate, IEC, and proof of exports. Include additional documentation, such as certifications, multi-year export turnover records, and compliance with guidelines.
Validity Certification is valid for a set period and requires renewal upon expiry. Same validity and renewal process, but stricter compliance requirements.
Category-based recognition N/A One Star Export House: Requires the lowest export turnover threshold.

Five Star Export House: Highest recognition level with significant global export performance.

Export House Certificate: A Key Step in Gaining Recognition

Once a business meets the eligibility criteria for becoming an Export House or Star Export House, they need to apply for the Export House Certificate. This certificate, issued by DGFT, is the formal recognition that establishes a business as an Export House in India.

The Export House Certificate is an important document for businesses wishing to take advantage of the benefits and opportunities that come with export recognition. 

It serves as proof that your company has met the required export performance benchmarks, making it eligible for a range of incentives, smoother customs processes, and access to global markets.

Online Application Process for Export House Certificate

You can apply for an Export House Certificate through DGFT’s online portal. The process generally involves submitting the following documents:

  • Digital Signature Certificate (DSC): Ensures the authenticity of the application.
  • Importer Exporter Code (IEC): A mandatory requirement for all businesses engaged in import and export.
  • Proof of Export: Documentation such as shipping bills or export invoices proving the value of exports.
  • Financial Statements: To verify export turnover and compliance with eligibility criteria.

Once the application is submitted, the DGFT reviews the export performance over a specified period (usually 3 years). 

Upon approval, the Export House Certificate is issued, which may be valid for a certain period (usually 2-3 years), after which the exporter must apply for renewal.

Importance of the Certificate

The Export House Certificate is not just a piece of paper—it is a mark of excellence and a key to unlocking various privileges. This recognition boosts your business’s credibility on the global stage, helps in obtaining export financing, and simplifies dealings with customs and regulatory authorities.

For businesses aiming to attain higher recognition as a Star Export House, the Export House Certificate serves as the first step. 

The status can be upgraded as the company’s export performance improves, allowing it to achieve higher star ratings (from One Star to Five Star) based on its export turnover.

Conclusion

Both Export House and Star Export House statuses offer significant benefits but with differing levels of recognition. While the Export House is an entry-level certification, the Star Export House, with its tiered categories, rewards exceptional export performance and provides additional advantages. Understanding these distinctions helps businesses plan their growth and enhance their presence in global markets.

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