Automated Issuance of Free Sale and Commerce Certificates
DGFT Introduces Automated Issuance of Free Sale and Commerce Certificates
The Directorate General of Foreign Trade (DGFT) has introduced an automated mechanism for issuing Free Sale and Commerce Certificates (FSC) through its online portal.
The initiative, announced through Trade Notice No. 24/2026-2027 dated 31 August 2026, is aimed at simplifying the certification process, reducing manual intervention and improving turnaround time for exporters.
Background
Under Paragraph 2.34 of the Handbook of Procedures (HBP), DGFT issues Free Sale and Commerce Certificates to exporters for eligible products that are not covered under the Drugs and Cosmetics Act, 1940.
Previously, after an exporter submitted an online application, the application was generally forwarded to the concerned Regional Authority (RA) for manual scrutiny, verification and approval. This process could result in additional processing time.
Automated Processing of FSC Applications
To promote greater digitisation and facilitate ease of doing business, DGFT has now enabled a system-based automated workflow for eligible FSC applications.
The new mechanism operates on a rule-based and risk-based approach in line with the digital processing framework contemplated under the HBP.
Important Features
1. Automatic issuance for eligible applications
Applications satisfying the prescribed system parameters may be processed and approved automatically without routine manual intervention.
2. Manual processing where required
Applications that require additional verification or do not satisfy the conditions prescribed for automated processing may continue to be referred to the relevant Regional Authority for examination.
3. Risk-based review
Even after automatic approval, certain applications may subsequently be selected by the system for review by the concerned Regional Authority based on applicable risk-management parameters.
Impact on Exporters
The introduction of automated FSC issuance is expected to make the certification process more efficient, paperless and transparent. Exporters meeting the applicable requirements may benefit from faster processing and reduced dependency on manual verification.
The move is also part of DGFT’s broader efforts to digitise trade procedures, reduce compliance requirements and facilitate seamless international trade.
Key Takeaway
The automated Free Sale and Commerce Certificate facility represents a further step towards paperless and technology-driven export administration. Exporters dealing in products eligible for FSC may now experience quicker processing, while applications requiring scrutiny will continue to be handled by the concerned Regional Authorities.
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