In recent years, India’s engineering sector has emerged as a global powerhouse, contributing significantly to the country’s exports. From industrial machinery and automotive components to electrical equipment and fabricated metal products, Indian engineering units are playing a vital role in meeting global industrial demands. To strengthen their global position and unlock government-backed trade benefits, many of these engineering exporters are now pursuing Export House Status, especially aiming for the One Star Export House category.
This article explores why Indian engineering units are actively applying for Export House Status, the eligibility criteria, the range of benefits, and how this recognition can help these businesses grow exponentially in the global marketplace.
What is Export House Status?
Export House Status is a government recognition granted by the Directorate General of Foreign Trade (DGFT) to Indian exporters based on their export performance. It is a part of India’s Foreign Trade Policy (FTP) and is designed to encourage consistent and high-performing exporters by rewarding them with various trade facilitation privileges.
There are five levels of export house certification:
- One Star Export House
- Two Star Export House
- Three Star Export House
- Four Star Export House
- Five Star Export House
The One Star Export House is the entry-level status and serves as the gateway to higher certifications. It is often the first milestone that small and mid-sized exporters aim for.
Why Engineering Units Are Targeting Export House Status
1. Boost in Global Credibility and Brand Value
Engineering products demand high standards of quality, precision, and durability. International buyers are more likely to trust exporters with an official Export House Status as it reflects a track record of compliance, consistency, and professionalism. This certification gives Indian engineering firms a competitive edge and helps them stand out in the global market.
2. Faster Customs Clearance and Reduced Delays
One of the key advantages of Export House recognition is priority customs clearance. For engineering units exporting heavy equipment or time-sensitive parts, even minor delays can result in missed deadlines and losses. With export house privileges, engineering firms can ensure faster logistics, better customer satisfaction, and lower risk of penalty for late deliveries.
3. Eligibility for Incentive Schemes
Star-rated exporters are often prioritized for government export incentive schemes such as:
- RoDTEP (Remission of Duties and Taxes on Exported Products)
- SEIS (Service Exports from India Scheme)
- Duty drawback benefits
- Advance Authorization Scheme
Engineering exporters can maximize their profits and reduce input costs by availing these incentives more seamlessly once they obtain Export House Status.
4. Simplified Documentation and Compliance
Export documentation can be tedious and time-consuming. However, One Star Export House holders enjoy streamlined procedures. They can self-certify certain export documents and are exempt from filing certain compliance certificates like the Bank Realization Certificate (BRC) for specific applications. This saves both time and administrative overhead.
5. Access to Better Financial Support
Banks and financial institutions offer improved terms of trade credit, export financing, and working capital loans to certified export houses. With Export House Status, engineering exporters are seen as lower-risk borrowers. This enhanced credibility can help secure faster funding at better interest rates.
6. Increased Visibility in Government Procurement
Several government and international procurement contracts give preference to recognized exporters. Engineering firms with an Export House Status stand a better chance of qualifying for such tenders and contracts. This widens their business scope significantly, both within India and abroad.
Why Export House Status is the Ideal Starting Point
Many small and medium engineering companies are beginning their journey with the One Star Export House certification. It is considered the most accessible level of recognition and provides a host of benefits with a relatively low export performance requirement.
You can learn more or apply for certification through this One Star Export House application link on the DGFT official website.
Eligibility Criteria for One Star Export House
To qualify, a company must:
- Hold a valid Import Export Code (IEC)
- Achieve a minimum of USD 3 million in export FOB (Free on Board) value over the last three financial years, plus the current year
- Be registered with a recognized Export Promotion Council
- Submit certified financial statements and export data through the ANF 3A form on the DGFT portal
Engineering exporters who meet these criteria can apply directly online and usually receive their certificate within 7 to 15 working days if documents are correct and complete.
Real-World Impact: Case Studies
a) SME Fabrication Unit in Pune
A medium-scale fabrication unit dealing in industrial structures and machine parts earned One Star Export House status in 2022. The certification helped the business:
- Enter new export markets in Europe
- Reduce export clearance time by 30%
- Receive a 2% reduction in interest rates on export loans
b) Automation Parts Manufacturer in Bengaluru
After securing Export House certification, the company leveraged RoDTEP incentives and saved over ₹10 lakhs annually in duties. Their credibility also helped them secure an international contract with a leading German automation brand.
These examples show how even small and medium engineering firms can benefit significantly from this government recognition.
How to Apply For Export House Status
- Register your business and IEC on the DGFT Portal
- Fill out the ANF 3A form
- Upload the required documents:
- IEC Certificate
- RCMC (Registration-Cum-Membership Certificate)
- CA-certified export performance certificate
- Financial statements
- IEC Certificate
- Pay the prescribed application fee
- Track the status of your application and download the certificate once approved
Conslusion
India’s engineering sector is rapidly evolving and capturing attention in global markets. As competition intensifies, acquiring an official Export House Status is no longer optional—it’s a strategic move. The One Star Export House certification is not only a government recognition but a passport to international growth, operational efficiency, and financial ease.
For Indian engineering units, the time to act is now. Leverage your export performance, apply for Export House recognition, and unlock a world of new opportunities.
