New Delhi: The Directorate General of Foreign Trade (DGFT) has introduced automated issuance of Free Sale and Commerce Certificates (FSCs) through its online portal, aiming to reduce processing time and compliance requirements for eligible exporters.
The move is part of the government’s ongoing efforts to improve Ease of Doing Business for the exporting community by reducing manual intervention in routine certificate processing.
FSC Applications to Move to Automated Processing
Free Sale and Commerce Certificates are issued to exporters under the Foreign Trade Policy for eligible products that are not covered under the Drugs & Cosmetics Act, 1940.
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Previously, applications were examined and verified by DGFT Regional Authorities (RAs) before the certificates were issued.
Under the new system, eligible applications will be processed automatically according to the applicable rules and parameters.
What changes under the new mechanism?
- Eligible FSC applications can receive automatic issuance.
- Such applications will not ordinarily be routed for manual scrutiny.
- The system is designed to reduce processing time for eligible applications.
- It is expected to lower the compliance burden associated with manual processing.
- Applications requiring additional verification can still be sent to the concerned Regional Authority.
Risk-Based Checks to Continue
The automated process does not eliminate regulatory oversight.
Applications that do not meet the prescribed automated processing parameters or require verification can continue to undergo manual processing by the concerned Regional Authority.
The system will also use risk-management parameters to identify certain auto-approved applications for subsequent review by the concerned RA.
This allows routine applications to be processed automatically while retaining additional scrutiny for cases identified as requiring verification.
DGFT Seeks More Predictable Certificate Processing
According to DGFT, the automated mechanism is intended to reduce avoidable manual intervention and make the issuance process more predictable for exporters.
The initiative combines rule-based automation with risk-based review, allowing the department to streamline eligible applications while maintaining verification mechanisms for cases requiring closer examination.
Expected benefits for exporters:
- Faster issuance of eligible FSCs.
- Reduced manual intervention.
- Lower compliance burden.
- More predictable processing timelines.
- Greater use of automated, rule-based processing.
- Continued oversight through risk-based review.
Part of Ease of Doing Business Measures
The automated FSC mechanism is part of the government’s broader efforts to simplify procedures for exporters through digital systems.
By shifting eligible applications from manual scrutiny to automated processing, DGFT aims to make certificate issuance more efficient while retaining safeguards for applications that require additional examination.
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