Top 5 Mistakes Indian Exporters Make While Applying for One Star Export House Status

Securing One Star Export House Status can significantly enhance an Indian exporters credibility, providing benefits like faster customs clearance, simplified procedures under Indias Foreign Trade Policy (FTP), and improved global competitiveness. However, many exporters face delays, rejections, or unnecessary scrutiny due to avoidable mistakes during the application process, impacting their ability to leverage the advantages tied to this recognition.

However, despite these clear benefits, many Indian exporters, in the rush to secure this coveted status, unknowingly make avoidable mistakes during the application process. These mistakes often lead to delays, issuance of deficiency letters by DGFT, rejections, or even compliance complications that can restrict exporters from availing the full benefits of the status. In some cases, errors in documentation or misinterpretation of export turnover eligibility can also lead to the denial of the certificate, wasting months of preparation and delaying business expansion plans.

Therefore, understanding these common pitfalls and learning how to navigate them strategically becomes essential for any exporter looking to leverage this status for business growth. By proactively addressing these issues, exporters can ensure a smoother application process, secure timely approvals, and fully utilise the benefits associated with One Star Export House Status under FTP 2023.

In this article, we will guide you through the top 5 mistakes exporters commonly make while applying for One Star Export House Status, along with actionable steps and practical insights to avoid them, ensuring your business leverages this opportunity efficiently to unlock its next phase of growth.

Understanding One Star Export House Status

The One Star Export House Status is issued by the DGFT to exporters who achieve a minimum export performance of USD 3 million FOB (Free on Board) in the last two financial years. It is the first step in the status holder recognition of India's FTP, which gives the benefits of:

• Facilitated customs clearances.

• Relief from providing bank guarantees for some authorisations.

• Priority processing of applications with DGFT.

• Increased recognition in the overseas market.

Mistake 1: Incorrect Export Turnover Calculation

Most exporters incorrectly calculate their export FOB value, which results in their applications being rejected. They usually:

• Exclude deemed exports, which are not factored in.

• Don't net off local sales or high seas sales.

• Incorrectly convert foreign currency to USD.

How to avoid: Make sure you only account for eligible physical export FOB values and use RBI reference rates for conversion, backed up with bank realisation certificates (BRCs) for uniformity.

Mistake 2: Incomplete Documentation

Inaccurate or incomplete documentation is one of the leading causes of delays and rejection. Documents such as:

• Self-certified copies of IEC.

• Export performance statements.

• CA-certified export turnover certificates.

• Valid RCMC (Registration-Cum-Membership Certificate).

can put your application process on hold.

How to avoid: Make a document checklist beforehand and check each document for validity and accuracy before submission.

Mistake 3: Inconsistent Export Data with DGFT Records

DGFT cross-verifies your export data with the EDI system and shipping bill information. Any discrepancy between your reported data and DGFT's system may result in objections.

Avoidance: Cross-verify your export numbers with EDI records and shipping bills before submission to ensure uniformity in BRCs, CA certificates, and the DGFT portal.

Mistake 4: Overlooking Pending Compliance Issues

Exporters with outstanding cases, disputes, or uncompromised export obligations under Advance Authorisation or EPCG usually encounter difficulties in obtaining status recognition.

How to avoid: Clear all the pending cases and ensure there is no compliance issue outstanding before applying for One Star Export House Status.

Mistake 5: Delayed or Improper Application Submission

Most exporters hurriedly apply without reading the FTP guidelines carefully, resulting in wrong entries, incomplete details, or late filings that are reflected in delayed approvals.

Avoidance: Carefully read the DGFT guidelines, take the advice of trade specialists if needed, and prepare your application in an orderly manner for submission on time.

Best Practices to Obtain One Star Export House Status Efficiently

• Employ ERP/SAP tracking: Implement export data handling in your SAP/ERP software for accurate tracking of export turnover.

• Keep records current: Keep your RCMC, IEC, and bank certificates current.

• Seek expert advice: Take advice from DGFT consultants or export promotion councils to prevent misinterpretation of policy clauses.

• Monthly reconciliations: Monthly export data reconciliations for regular records.

Conclusion

One Star Export House Status Application can greatly help Indian exporters in streamlining the trade process, lowering costs, and building international credibility. Nevertheless, precautions against frequent errors such as improper turnover calculation, incomplete documentation, data mismatches, non-compliance issues remaining unresolved, and incorrect application submissions must be taken to achieve a hassle-free approval.

By understanding these pitfalls and adopting a systematic, compliant approach, exporters can secure One Star Export House Status seamlessly and leverage the advantages it offers to expand their global trade footprint while aligning with Indias export promotion goals.

Additionally, obtaining this status strengthens an exporters standing with customs and DGFT authorities, enabling faster clearances and better utilisation of duty exemption schemes like Advance Authorisation and EPCG. It also helps in building trust with international buyers, demonstrating your commitment to compliance and operational excellence. As global trade becomes more competitive, achieving One Star Export House Status can position your business for sustainable growth, operational efficiency, and consistent market expansion, ensuring your export operations are ready for the demands of the evolving global market.