EXPORT & TRADING HOUSE

History –Export House

The origin of export houses in India goes back to 1958
when Government of India gave serious consideration
to the development of specialized agencies for the
promotion of non traditional items
The initiative was necessary to help the small scale
sector in the export of their products
The criterion adopted by Indian
Government in EXIM policy 1985-88
Exports divided into
SELECT Product
( non traditional products – engineering goods , leather etc )

NON SELECT Product

( Traditional items )

Export Turnover : Between 3 crore to 7 crore

Annual Growth Rate : Minimum 20%

History –Trading House
The concept of Trading House in India was brought
into being by the government in 1981-82
It was in line with such a concept in developed
countries where encouragement given to those
companies who have professional expertise in the field
of International Trade , export
The criterion adopted by Indian
Government in EXIM policy 1985-88
The export house were eligible to become Trading
Houses provided they had annual average export in
the three previous financial years of at least Rs 15
crore of exports in the select products
 Annual Growth Rate : Minimum 20% for renewal
of status
EXIM Policy 1988 - 1991
The eligibility of grant of Export house / Trading
House certificate was based on the concept of NFE
(Net Foreign Exchange ) earning made in the
preceding three licensing years termed as “ Base
Period “
 The annual average NFE earnings in the prescribed
base period should not be less than
(i) Rs 2 crore in the case of export house
(ii) Rs 10 crore in the case of Trading house
EXIM Policy change 2007
With effect from 1st April 2007 the criterion for
criterion as Export house , Trade house or star trading
house is the average annual NFE during the three
preceding years
Category Performance ( In Rupees )
Export House ( EH )
20 crore
Star Export House (SEH )
100 crore
Trading House
500 crore
Star Trading House

2500 crore
Premier Trading House (PTH)
10000 crore
Star Export House
Who can Become Star Export House ?
Merchant as well as Manufacturer Exporters, Service
Providers, Export Oriented Units (EOUs) and Units
located in Special Economic Zones (SEZs), Agri
Export Zone (AEZ’s), Electronic Hardware
Technology Parks (EHTPs), Software Technology
Parks (STPs) and Bio Technology Parks (BTPs) shall
be eligible for applying for status as Star Export
Houses
Eligibility Criterion
The applicant shall be
categorized depending on his
total FOB/FOR export
performance during the current
plus the previous three years
Classification Criterion
Category Performance ( In Rupees )
One Star Export House
15 crore
Two Star Export House
100 crore
Three Star Export House
500 crore
Four Star Export House
1500 crore
Five Star Export House
5000 crore
Privileges

 Licence/certificate/permissions 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. The remittance, however, would
continue to be received through banking channels;
100% retention of foreign exchange in EEFC account
Enhancement in normal repatriation period from 180
days to 360 days.
Entitlement for consideration under the Target Plus
Scheme
Exemption from furnishing of Bank Guarantee in
Schemes under this Policy.
Reference
1)
http://books.google.co.in/books?id=bQ-
04WIqkl8C&pg=PA50&lpg=PA50&dq=Define+star+export+house&source=bl&ots=5Ht6v8DbSv
&sig=ChKzt5HUY1EcdcnF9ztIEG2-
p6g&hl=en&ei=WpeQTOGYG8aHccOHxPYM&sa=X&oi=book_result&ct=result&resnum=9&v
ed=0CDYQ6AEwCA#v=onepage&q&f=false