DGFT Automates Free Sale Certificate Issuance to Cut Processing Time for Exporters

The Directorate General of Foreign Trade (DGFT) has automated the issuance of Free Sale and Commerce Certificates (FSC), aiming to make the approval process quicker and reduce the compliance burden for exporters. Under the new system, eligible FSC applications will no longer be required to undergo routine manual scrutiny. Instead, applications that meet the prescribed conditions will be processed automatically through the DGFT portal, helping exporters obtain the certificates in a shorter timeframe.

The Ministry of Commerce and Industry said the initiative is intended to simplify the existing process and reduce delays. Until now, exporters could submit their applications online, but the requests were subsequently sent to the concerned DGFT Regional Authority for manual examination, verification and approval. The earlier procedure often resulted in longer processing times.

According to DGFT Trade Notice No. 24/2026-2027 issued on August 31, the new automated mechanism will allow eligible applications to move through a system-driven workflow without being routinely referred for manual scrutiny. The government expects the change to significantly improve turnaround times for a large number of FSC applications.

The new system does not mean that every application will be automatically approved. Cases that require additional verification or fail to satisfy the conditions for automated processing can still be referred to the relevant DGFT Regional Authority for manual examination. Some applications that are cleared automatically may also be selected for subsequent review under DGFT's risk management system.

Free Sale and Commerce Certificates are issued by the DGFT under India's Foreign Trade Policy for certain products that are not covered by the Drugs & Cosmetics Act, 1940. These certificates can be required by exporters for meeting regulatory or commercial requirements in overseas markets. The DGFT said the new mechanism represents a shift from manual verification towards a digital and system-based process. The automated workflow is expected to support paperless processing, reduce unnecessary administrative intervention and provide exporters with more predictable turnaround times.

The move is part of the government's broader efforts to simplify trade procedures and improve the ease of doing business for exporters. By automating routine applications while retaining manual checks for cases that need closer examination, DGFT aims to make the certification process faster without removing necessary regulatory safeguards.

Disclaimer: This image is taken from ANI.