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How does a service exporter become a DGFT status holder?

Author:: Editorial team, serviceexportguide.com
Verified by:: Editorial team
Published: 28 October 2026
Last modified: 30 October 2026
Reading time: 7 min read

Short answer

Any exporter of goods, services or technology with an IEC can be a DGFT status holder under paragraph 1.25 of the Foreign Trade Policy 2023.¹ Recognition depends on export performance over the current and preceding three financial years.¹ Thresholds run from USD 3 million (One Star) to USD 800 million (Five Star).¹ A certificate is valid for five years.²

Applies to	Governed by	Deadline	Penalty	Last verified
Exporters of goods, services or technology holding an IEC¹	Foreign Trade Policy 2023, paragraphs 1.25 to 1.30; Handbook of Procedures 2023, paragraphs 1.08 to 1.12¹²	Certificate valid for five years from the date the application was filed²	Refusal, suspension or cancellation by the Regional Authority; appeal to DGFT within 45 days²	28 October 2026

A status holder is an exporter that DGFT, the Directorate General of Foreign Trade, recognises as an "Export House" based on its export performance. The Foreign Trade Policy (FTP) 2023 describes status holders as business leaders who have contributed to India's foreign trade and who are expected to mentor new exporters.¹

What is a DGFT status holder?

A DGFT status holder is an exporter recognised as a One to Five Star "Export House" under paragraphs 1.25 to 1.30 of the Foreign Trade Policy 2023, based on its export performance.¹ Service exporters are eligible on the same footing as goods exporters.¹

Basis: export performance is counted on the free on board (FOB) value of export earnings in freely convertible foreign currency, or in Indian rupees where the FTP allows.¹
Period: the applicant must reach the threshold over the current and preceding three financial years, and must have export performance in each of the three preceding financial years.¹ Gems and jewellery exporters use two years instead.¹
Role: status holders are expected to mentor new exporters.¹

For example, an IT services firm, a business process management company, an architecture practice or an engineering design firm with enough foreign exchange earnings can apply.¹

Who is eligible for DGFT status holder recognition?

All exporters of goods, services and technology that hold an Importer Exporter Code (IEC) on the date of application are eligible for DGFT status holder recognition, based on export performance.¹

Exporter type	Eligible?	Why	Best for
Services firm with an IEC and enough export earnings	Yes	Paragraph 1.25(b) covers exporters of goods, services and technology¹	IT, BPM, architecture and engineering design firms
Micro or small enterprise under the MSMED Act, 2006	Yes, with double weightage for One Star	Double weightage applies only for One Star Export House¹	Smaller service exporters near the USD 3 million mark
Service exporter in the North Eastern States, Sikkim, or Jammu, Kashmir and Ladakh	Yes, with double weightage for One Star	Units in these regions get double weightage¹	Exporters located in the listed regions
Group company relying on another IEC holder's exports	No	Export performance cannot be transferred and disclaimers are not allowed¹	Not applicable
Firm without an IEC on the date of application	No	The IEC must exist on the date of application¹	Get an IEC first

Because the IEC must exist on the date of application, and for services the IEC is tied to the date the service is rendered when FTP benefits are claimed, it helps to get the IEC early.¹³ See how to apply for an IEC code.

How do you apply for DGFT status holder recognition?

You apply for DGFT status holder recognition by filing an online application in ANF 1B with the prescribed documents on the DGFT portal.²

Hold an IEC on the date of application.¹
Check export performance over the current and preceding three financial years, with performance in each of the three preceding years.¹
Gather evidence: typical supporting evidence is a record of foreign exchange earnings for the qualifying years; check the current ANF 1B checklist on the portal before filing.²
File ANF 1B online with the prescribed documents on the DGFT portal.²
Regional Authority decides: the application goes to the jurisdictional Regional Authority, decided by the registered office for a company and the head office for other entities.²

If you are near a threshold, a chartered accountant can help check which earnings count before you apply.

What are the DGFT status holder categories and thresholds?

The DGFT status holder categories are One to Five Star Export House, set by export performance in US dollars under the FTP 2023:¹

Status category	Export performance threshold (USD million)	Best for
One Star Export House	3	Growing service exporters
Two Star Export House	15	Mid-sized exporters
Three Star Export House	50	Larger exporters
Four Star Export House	200	Large exporters
Five Star Export House	800	The largest exporters

A firm that crosses a higher threshold can upgrade by surrendering its existing certificate and applying again.²

Which exporters get double weightage for status holder recognition?

Double weightage for status holder recognition applies only when calculating eligibility for One Star Export House.¹

Micro and small enterprises: as defined under the MSMED Act, 2006.¹
Certified manufacturing units: manufacturing units with ISO or BIS certification.¹
Regions: units in the North Eastern States including Sikkim and in Jammu, Kashmir and Ladakh.¹
Produce: exports of certain fruits and vegetables.¹

A shipment or a service rendered can get double weightage only once, under one category.¹ For a service exporter, the realistic route is the micro or small enterprise category, or location in one of the listed regions.¹

What other conditions apply to status holder recognition?

Paragraph 1.28 of the FTP 2023 adds three conditions to status holder recognition:¹

No transfers: export performance of one IEC holder cannot be transferred to another, so a group company cannot "disclaim" its exports in your favour.
Re-exports: re-exports are not counted.
Authorisations: exports under an authorisation, including SCOMET items, are counted.

What happens if a DGFT status holder breaks the conditions?

If a DGFT status holder breaks the conditions, the Regional Authority can refuse, suspend or cancel its certificate.²

Grounds: failing an export obligation, tampering with authorisations, misrepresenting facts, breaching the Foreign Trade (Development and Regulation) Act, FEMA, customs or GST laws, or failing to give information DGFT asks for.²
Appeal: an appeal against suspension or cancellation lies to DGFT within 45 days.²
Records: status holders must keep true and proper accounts of the exports on which recognition was granted for two years from the grant, and make them available for inspection.²

Keeping the export records in order is the simplest protection.²

What is the timeline for a DGFT status holder certificate?

A DGFT status holder certificate issued under the FTP 2023 is valid for five years from the date the application for recognition was filed.²

Event	Timeline	Best for
Certificate validity	Five years from the date the application was filed²	Planning renewal
Certificates under FTP 2015-20	Remained valid only until 30 September 2023²	Firms with older certificates
Keeping export accounts	Two years from the grant²	Inspection readiness
Training obligation	Each year, for Two Star and above¹	Two Star to Five Star holders
Appeal against suspension or cancellation	Within 45 days, to DGFT²	Firms facing action

What privileges does a DGFT status holder get?

A DGFT status holder gets the privileges in paragraph 1.29 of the FTP 2023, several of which relate to goods and customs and matter less to a pure service exporter.¹

Privilege	Relevance to a service exporter	Best for
Authorisations and customs clearances on self-declaration	Relevant only if the firm imports or exports goods¹	Firms that also trade goods
Exemption from furnishing bank guarantees for FTP schemes, unless specified otherwise	Relevant if the firm uses FTP schemes such as EPCG¹	Service exporters using FTP schemes
Exemption from compulsory negotiation of documents through banks (remittances still through banking channels)	Mainly a goods-trade privilege¹	Goods exporters
Export warehouses for Two Star and above	Goods only¹	Goods exporters
Priority handling of consignments	Goods only¹	Goods exporters
Free-of-cost exports of freely exportable items for export promotion, within an annual limit	Goods only¹	Goods exporters

The recognition itself is often used in tenders, client due diligence and marketing material; that use is commercial and sits outside the FTP privileges.

What obligations come with DGFT status holder recognition?

DGFT status holders are expected to train people in international trade each year: 5 trainees for Two Star, 10 for Three Star, 20 for Four Star and 50 for Five Star.¹ DGFT puts a model training programme of at least 6 weeks in the public domain, while eligibility, selection and curriculum are at the status holder's discretion.¹

What are the common mistakes with DGFT status holder applications?

The common mistakes with DGFT status holder applications are counting earnings that do not qualify, missing a year of export performance and applying without an IEC in place.¹

Counting a group company's exports: export performance cannot be transferred, and disclaimers are not allowed.¹
Counting re-exports: re-exports are not counted.¹
A gap year: export performance is needed in each of the three preceding financial years.¹
Late IEC: the IEC must exist on the date of application.¹
Double weightage above One Star: double weightage applies only to One Star eligibility.¹

Confirm which earnings count with a chartered accountant before filing.

How did we verify this?

We checked this page against the sources below on 30 October 2026. Read our methodology or report an error.

Frequently asked questions

What is the export threshold for a One Star Export House?+

The export threshold for a One Star Export House is USD 3 million of export performance, counted under paragraph 1.26 of the Foreign Trade Policy 2023.¹ The amount is reached over the current and preceding three financial years, with export performance needed in each of the three preceding years.¹

Can export performance be transferred from a group company for status holder recognition?+

Export performance cannot be transferred from a group company for status holder recognition. Paragraph 1.28 of the Foreign Trade Policy 2023 says export performance of one IEC holder cannot be transferred to another, and disclaimers are not allowed.¹ Each IEC holder qualifies on its own foreign exchange earnings for the qualifying years.

Do DGFT status holders have training obligations?+

DGFT status holders of Two Star and above are expected to train people in international trade each year: 5 trainees for Two Star, 10 for Three Star, 20 for Four Star and 50 for Five Star.¹ DGFT publishes a model training programme of at least 6 weeks, and the curriculum is at the status holder's discretion.¹

Can a status holder upgrade to a higher star category?+

A status holder can upgrade to a higher star category once its export performance crosses the higher threshold. The firm surrenders its existing certificate and applies again under the Handbook of Procedures.² For example, a Two Star firm that crosses USD 50 million could apply for Three Star recognition.¹²

Which DGFT office handles a status holder application?+

A status holder application is handled by the jurisdictional Regional Authority of DGFT. The Regional Authority is decided by the registered office for a company and by the head office for other entities.² The application itself is filed online in ANF 1B on the DGFT portal with the prescribed documents.²

Does double weightage apply to Two Star Export House and above?+

Double weightage does not apply to Two Star Export House and above. It applies only when calculating eligibility for One Star Export House, for categories such as micro and small enterprises under the MSMED Act, 2006.¹ A shipment or service rendered can get double weightage only once, under one category.¹

This page is general information for Indian service exporters, not tax or legal advice. Rules change and outcomes depend on your facts, so confirm with a chartered accountant before acting.

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