DGFT Automates Free Sale And Commerce Certificate Issuance To Cut Processing Time For Exporters

(MENAFN- Live Mint) New Delhi: The Directorate General of Foreign Trade (DGFT) has automated the issuance of export clearance certificates for non-regulated goods, cutting red tape for business owners navigating the nation's trade bureau.

Under the DGFT 's new workflow, routine applications for Free Sale and Commerce Certificates will skip manual review by regional officers. The system instead relies on an automated, rule-based algorithm to verify and issue trade documentation.

The shift addresses a long-standing complaint among exporters regarding unpredictable processing delays at regional trade offices. By shifting routine verifications to an automated system, officials aim to fast-track compliant shipments while reserving manual scrutiny for high-risk or irregular applications.

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The move marks the latest push by New Delhi to digitize trade infrastructure and boost export competitiveness. However, trade authorities retained a post-approval safety net, granting regional officers the authority to audit automatically cleared certificates based on internal risk flags.

Applications that require verification or do not meet the parameters prescribed for automated processing may continue to be routed to the concerned RA for manual processing.

In addition, certain applications that are automatically approved may subsequently be flagged to the concerned Regional Authority for review under the system's 'risk-management parameters'.

Automation plus manual scrutiny

The new framework, therefore, seeks to combine automated processing for eligible applications with manual scrutiny and risk-based review in cases requiring additional verification.

DGFT said the measure is expected to reduce avoidable manual intervention, improve the predictability of processing and facilitate faster issuance of Free Sale and Commerce Certificates for eligible exporters.

The initiative is also expected to strengthen rule-based, paperless processing while retaining appropriate verification and oversight for applications that require scrutiny.

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According to DGFT, the automated mechanism will make the issuance of Free Sale and Commerce Certificates more 'efficient, transparent and predictable' for exporters and the administering authorities.

The Free Sale and Commerce Certificate facility is governed by paragraph 2.34 of the Handbook of Procedures, under which DGFT issues such certificates to exporters for items outside the scope of the Drugs & Cosmetics Act, 1940.

The latest change effectively shifts eligible FSC applications from the earlier manual verification route to a 'system-driven process', while retaining Regional Authority intervention where applications fall outside the automated processing parameters or are selected for risk-based review.

The move is part of the government's broader efforts to promote ease of doing business for the exporting community through greater digitisation and automation of trade-related processes.

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