Recognition of Export Houses/ Trading Houses, etc for Small Scale Sector



With a view to recognize established exporters so that they may build marketing infrastructure and expertise required for export production, merchant as well as manufacturer exporters, EOU etc. are recognized as Export House(EH), Trading Houses(TH), Star Trading Houses(STH) and Super Star Trading Houses(SSTH) on the basis of certain criteria as laid down in the Export-Import Policy 1997-2002. The eligibility criteria for such recognition is based either on the basis of FOB or Net Foreign Exchange value of exports of goods and services made directly by the exporters during the preceding three licensing years or the preceding licensing year.
In an attempt to encourage exports from the small scale sector, the exports made by small scale sector manufacturer-exporters are given triple weightage for the purpose of recognition as EH/TH/STH/SSTH.
Category
Average FOB value during the preceding three licensing years, in INR
FOB value during the preceding licensing year, in INR
Average NFE (Net Foreign Exchange) earnings made during the preceding three licensing years , in INR
NFE(Net Foreign Exchange) earned during the preceding licensing year, in INR
(1)
(2)
(3)
(4)
(5)
Export House
5 crores
7 crores
4 crores
6 crores
Trading House
25 crores
37 crores
20 crores
30 crores
Star Trading House
125 crores
187 crores
104 crores
150 crores
Super Star Trading House
375 crores
580 crores
312 crores
450 crores
Accordingly, in terms of provisions contained at para 12.7(a) of the Exim Policy 1997-2002 (amended upto 31/3/99), triple weightage on FOB or net foreign exchange on the export o f products manufactured and exported by units in the small scale industry (MSME)/ Tiny sector/ Cottage sector and double weightage on FOB or net foreign exchange to merchant exporter exporting products reserved for MSME units and manufactured by units in the MSME/Tiny Sector is give. These Export Houses, Trading Houses, etc. are entitled to following benefits under the current Export-Import Policy.
  • Authorization and Customs Clearances for both imports and exports on self-declaration basis;
  • Fixation of Input-Output norms on priority within 60 days;
  • Exemption from compulsory negotiation of documents through banks. Remittance / Receipts, however, would be received through banking channels;
  • 100% retention of foreign exchange in EEFC(Exchange Earners' Foreign Currency Account) account;
  • Exemption from furnishing of BG in Schemes under FTP;
  • SEHs and above shall be permitted to establish Export Warehouses, as per DoR guidelines.
  • For status holders, a decision on conferring of ACP Status shall be communicated by Customs within 30 days from receipt of application with Customs.
  • As an option, for Premier Trading House (PTH), the average level of exports under EPCG Scheme shall be the arithmetic mean of export performance in last 5years, instead of 3years.
  • Status Holders of specified sectors shall be eligible for Status Holder Incentive Scrip under Para3.16 of FTP.
  • Status Holders of Agri. Sector (Chapter to ) shall be eligible for Agri. Infrastructure Incentive Scrip under VKGUY - Para 3.13.4 of FTP.