Export House Benefits – A Complete Guide for Indian Exporters

export house benefits

 Export houses play a vital role in promoting India’s international trade. Recognized by the Directorate General of Foreign Trade (DGFT), export houses enjoy numerous benefits, incentives, and privileges that help them expand globally and stay competitive in international markets.

If you are an exporter in India, understanding the export house benefits can give you an edge in reducing costs, improving efficiency, and accessing government-backed incentives. This article provides a detailed overview of the advantages, eligibility criteria, and strategic value of becoming a recognized export house.

What is an Export House?

An Export House is a recognition status granted to exporters by the DGFT under the Foreign Trade Policy (FTP). Based on export performance, businesses can be categorized into:

  • Export House (EH)

  • Star Export House (SEH)

  • Trading House (TH)

  • Star Trading House (STH)

  • Premier Trading House (PTH)

This recognition is given to exporters who achieve a certain level of FOB (Free on Board) export turnover during a specified block of years.

Major Benefits of Export House Certification

Here are the top benefits of becoming a recognized export house in India:

1. Self-Certification for Export Documents

Export houses can issue certain certifications on their own without approaching multiple authorities. This simplifies the process of filing documents for export clearance.

2. Faster Customs Clearance

Recognized export houses receive priority handling at customs, reducing delays at ports and ensuring quicker shipments.

3. Eligibility for Various Incentive Schemes

Export houses get special access to schemes under the Foreign Trade Policy such as:

  • Advance Authorisation Scheme (AAS)

  • Export Promotion Capital Goods (EPCG) Scheme

  • Merchandise Exports from India Scheme (MEIS) (now replaced by RoDTEP/ RoSCTL)

4. Exemption from Bank Guarantee

In certain cases, export houses are exempted from furnishing a bank guarantee when applying for licenses, thus reducing financial burden.

5. Ease in Import of Capital Goods

Export houses can import capital goods for production at concessional duty rates under the EPCG scheme, leading to cost savings.

6. Simplified Procedures

DGFT grants export houses simplified procedures for applications, license renewals, and registrations, making international trade smoother.

7. Brand Recognition and Global Credibility

Having an Export House Status Certificate enhances the reputation of a company internationally, making it easier to build trust with foreign clients.

Who Can Apply for Export House Certification?

Any exporter (manufacturer, merchant, or service provider) who meets the minimum export performance criteria prescribed by DGFT can apply.

  • Export House (EH): USD 3 million FOB in preceding 3 years

  • Star Export House (SEH): USD 25 million FOB in preceding 3 years

  • Trading House (TH): USD 100 million FOB in preceding 3 years

  • Star Trading House (STH): USD 500 million FOB in preceding 3 years

  • Premier Trading House (PTH): USD 2000 million FOB in preceding 3 years

Export House Benefits for MSMEs and Small Exporters

For MSMEs and small exporters, export house recognition can open doors to:

  • Financial assistance and priority loans under government schemes.

  • Easier access to international buyers and trade fairs.

  • Improved chances of availing duty exemptions.

  • Increased market reach through credibility as a government-recognized exporter.

Why Apply for Export House Certification?

Exporting is not just about shipping goods abroad – it requires compliance with multiple regulations. An export house status gives businesses the leverage to expand without worrying about excessive documentation, financial barriers, or customs delays.

By obtaining export house recognition, exporters can:

  • Reduce transaction costs.

  • Get faster access to DGFT licenses.

  • Avail simplified processes under India’s Foreign Trade Policy.

  • Compete with global exporters effectively.

How to Apply for Export House Recognition

Exporters can apply online through the DGFT portal with the required documents:

  • IEC (Import Export Code)

  • RCMC (Registration-Cum-Membership Certificate) from an Export Promotion Council

  • Proof of export performance (shipping bills, BRCs, etc.)

  • PAN, GST, and business incorporation documents

Becoming a recognized Export House in India is more than just a certification – it’s a strategic advantage for exporters. From self-certification benefits and priority customs clearance to financial savings and global credibility, the benefits are immense.

📧 Email: Rishi@ykgglobal.com
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