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Exporters’ Benefits

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Exporters’ Benefits
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Naveen Mummidi
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Exporters’ Benefits - July 23rd, 2009

The grant of Export and Trading House status is one of the many promotional schemes in place by the Government of India. According to this scheme, merchandising and manufacturing companies fulfilling certain criteria can apply for such recognition.
What is in it for an entrepreneur qualified for a status? Well, a lot actually. For one, it strengthens the company’s negotiating capacity for sales abroad, and build up a more enduring relationship with the supporting manufacturers. Besides this, the status calls for grant of additional import licenses, that ensures availability of imported raw materials in advance for the supporting manufacturers. The status holder becomes eligible for many such privileges under the Foreign Trade Policy of India.
The application process is simple, says Ganesh Kumar Gupta, President, Federation of Indian Exporters Organizations. Moreover, there is no fee payable for grant of recognition status. To understand more, we spoke to him. Excerpts:
What is the essence of this scheme in the first place?
The essence is to give recognition to established exporters for promoting India’s exports and to build up the marketing infrastructure and expertise required for export promotion. This is particularly for small and medium segment of industry, who hardly have the wherewithal to market their products overseas on their own. The recognition is given upon achieving prescribed minimum level of export performance.

What are the benefits?
As a status holder, you will be eligible for a number of privileges under the Foreign Trade Policy, such as automatic customs clearances on self-declaration, priority on fixation in yield ratio for export and import, direct negotiation of export documents, repatriations of export proceeds in 360 days, exemption from furnishing of BG in schemes under the policy, overseas warehouses, etc.
Once I get this status, what are my responsibilities?
There is always an expectation that a status holder will continue to achieve higher growth in export performance. Besides this, the status holder should attain internationally accepted standards of quality, identify new product and new markets for exports and give thrust to generate employment.
When exactly can I apply?
You can apply on achievement of the export performance criterion prescribed in the Foreign Trade Policy.
What is the process?
At present, there is no fee payable for grant of recognition. As for the process, it is quite simple. It does not call for any specialized help to carry out the application process. However, it is up to the individual to decide on this. For an application for grant of status, you would need to file in ANF 3A of Aayaat Niryaat Form. This, along with the prescribed documents, needs to be filed in at the Regional Authority’s office. There are 32 such offices across the country in total (comprehensive list: Snipr | Snipurl - Peek of a URL someone shared with you..). Besides these, the DGFT headquarters in Delhi has territorial jurisdiction throughout India.
For how long is this recognition valid?
As per the policy in force, the recognition of status will be valid up to 31 March 2009. After this, an application of renewal may be filed at the office of the regional authority.
What if my exports dip? Is the status still valid?
This actually would directly affect your status renewal in future. You have to keep in mind that renewal of the existing status will be granted only if the eligibility criterion is fulfilled.

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