The Directorate General of Foreign Trade (DGFT) has introduced automated issuance of Free Sale and Commerce Certificates on its online portal, reducing manual processing for eligible exporters and making certificate issuance more predictable.
The new system, announced on September 1, 2026, applies to Free Sale and Commerce Certificates (FSCs) issued under the Foreign Trade Policy for products that are not covered by the Drugs & Cosmetics Act, 1940.
Until now, FSC applications have been processed by Regional Authorities (RAs) of DGFT following scrutiny and verification. Under the new arrangement, applications that meet the prescribed conditions can be processed automatically through the DGFT portal without being sent for manual scrutiny.
The change is aimed at shortening processing times for eligible applications and reducing the compliance effort associated with the earlier process. The government expects the automated mechanism to make the certificate issuance process more efficient for exporters while maintaining checks where they are required.
Not every application will move through the automated route. Applications that require additional verification or do not satisfy the parameters established for automatic processing can still be referred to the concerned Regional Authority for manual examination.
The system also incorporates risk-based oversight. Even after an application has been automatically approved, it may subsequently be flagged to the relevant Regional Authority for review under the system’s risk management parameters.
According to the Ministry of Commerce & Industry, combining automated, rule-based processing with risk-based review is intended to reduce unnecessary manual intervention without removing appropriate verification and oversight.
For exporters, the change could make the process of obtaining Free Sale and Commerce Certificates more predictable, particularly for applications that qualify for automatic issuance. The certificates are relevant to exporters dealing in products outside the scope of the Drugs & Cosmetics Act, 1940.
The initiative is part of the government’s continuing efforts to improve the ease of doing business for the exporting community by shifting eligible regulatory processes towards digital and automated systems.
The DGFT’s move also creates a clearer distinction between applications that can be processed automatically and those that require closer examination, allowing Regional Authorities to retain their review role where verification or risk assessment is necessary.
Source: This article is based on an official press release issued by the Press Information Bureau (PIB)
Press Release: Press Information Bureau
