Star Export House Status & Benefits

Under Para 3.28 of the Foreign Trade Policy 2023, export houses are categorised into five tiers based on cumulative FOB export performance in the current plus previous two financial years (or three years for physical exports): One Star (Rs 3 crore), Two Star (Rs 25 crore), Three Star (Rs 100 crore), Four Star (Rs 500 crore), and Five Star (Rs 2,000 crore). The application is filed online with the jurisdictional Regional Authority of the Directorate General of Foreign Trade (DGFT) in the form prescribed under Appendix 2T of the Handbook of Procedures 2023. The recognition is valid for three years from the date of issue. Export of services and export of goods are both counted toward the threshold, and the performance must be supported by Foreign Inward Remittance Certificates (FIRCs) or bank realisations.

Star Export Houses receive a range of privileges under Para 3.30 of the Foreign Trade Policy 2023, including self-declaration of origin in documents instead of obtaining certificates from export promotion councils. They are eligible for 'Recognised Exporter Status' enabling faster customs clearance under the Accredited Client Programme (ACP) of the Central Board of Indirect Taxes and Customs. Four Star and Five Star Export Houses are granted exemption from furnishing bank guarantee for EPCG and Advance Authorisation licences under Paras 4.34 and 5.20 of the Foreign Trade Policy 2023 respectively. They also receive priority treatment in the fixation of input-output norms and in the resolution of export obligation disputes with the DGFT.

Yes, service exporters can obtain Star Export House recognition under Para 3.28 of the Foreign Trade Policy 2023, and exports of services in foreign exchange are counted at their full invoice value as evidenced by Bank Realisations or FIRC/e-FIRC issued by the authorised dealer bank. For software exporters, the SOFTEX form countersigned by STPI or the authorised dealer serves as evidence of export performance. Services exported to Nepal and Bhutan in Indian rupees are excluded from the threshold computation unless permitted under a specific RBI circular. The three-year cumulative computation window allows a company that had a weak year to still qualify for higher-tier recognition using the combined performance of the current and two prior years.

Star Export House status itself does not create separate GST benefits, as the GST refund mechanism for exporters operates uniformly under Section 54 of the CGST Act 2017 read with Rule 89 and Rule 96 of the CGST Rules 2017. However, recognised exporters including Star Export Houses may be granted faster processing and priority in refund sanction by CBIC, as CBIC has periodically issued instructions to field formations to prioritise refunds for status holder exporters. The exporter must continue to file LUT in Form GST RFD-11 annually under Rule 96A of the CGST Rules 2017 to export without payment of IGST. Star Export House status does not substitute for LUT filing, and refunds of ITC or IGST must still be claimed within two years under Section 54(1) of the CGST Act 2017.

The application for Star Export House recognition is filed online on the DGFT portal (dgft.gov.in) under the digital form notified in Appendix 2T of the Handbook of Procedures 2023, along with a self-certified statement of export performance supported by FIRCs, BRCs, SOFTEX forms, or export promotion council certificates as applicable. The Importer Exporter Code (IEC) of the applicant must be in a valid and active status on the DGFT portal. The Regional Authority issues the Star Export House certificate typically within 3–5 working days of a complete online application under the digital processing environment. The certificate must be renewed every three years by filing a fresh application with updated performance evidence at least 30 days before expiry.