DGFT introduces online automation for Free Sale and Commerce Certificates

The Directorate General of Foreign Trade (DGFT), functioning under the Ministry of Commerce & Industry, has rolled out an automated module for issuing Free Sale and Commerce Certificates (FSC) through the DGFT online portal. This development is aligned with the Government’s ongoing Ease of Doing Business agenda and is intended to simplify and expedite formalities for the exporting community.

Under the Foreign Trade Policy framework, FSCs are granted to exporters in respect of items that are not regulated under the Drugs & Cosmetics Act, 1940. The new system shifts a major portion of the process from manual scrutiny by Regional Authorities (RAs) to rule-based automated approval, while still retaining oversight through risk-management checks and manual verification wherever necessary.

Background: Role and purpose of FSCs

What is a Free Sale and Commerce Certificate?

A Free Sale and Commerce Certificate serves as a document indicating that specific products are freely sold in India and are permissible for commercial use or trade. Many overseas regulators and importers require such certificates from exporters as part of their import clearance or product registration processes.

Key aspects of FSCs include:

  • They are issued under the Foreign Trade Policy framework.
  • They confirm that the products are freely available for sale in India.
  • They are used mainly to satisfy requirements of foreign authorities, trade partners or regulatory bodies.
  • They apply only to products outside the purview of the Drugs & Cosmetics Act, 1940.

Earlier process under Regional Authorities

Before the introduction of automation:

  • Exporters had to file FSC applications on the DGFT portal or through prescribed means.
  • Each application was routed to the concerned Regional Authority (RA) of DGFT.
  • RAs were responsible for reviewing, scrutinizing and verifying the details submitted.
  • Certificates were issued only after the RA completed its examination and was satisfied with the information and documents.

This manual approach, while ensuring regulatory checks, often involved longer processing timelines and repeated interfaces between exporters and RAs, thereby adding to compliance obligations and administrative burden.

New automated issuance system on DGFT portal

Core change: Rule-based auto-issuance

Under the newly enabled system, DGFT has operationalized an automated issuance mechanism for FSCs directly through the DGFT portal.