DGFT has enabled automated issuance of Free Sale and Commerce Certificates on its portal for eligible export applications, reducing routine manual processing while retaining Regional Authority scrutiny for cases requiring verification or risk-based review.
KEY TAKEAWAY
The Directorate General of Foreign Trade (DGFT) has enabled automated Free Sale and Commerce Certificate issuance on its portal for eligible exporters.
The change was announced by the Ministry of Commerce and Industry on 1 September 2026, following Trade Notice No. 24/2026–2027 dated 31 August 2026. The certificates are issued under the Foreign Trade Policy for export items that are not covered under the Drugs & Cosmetics Act, 1940.
Under the new system, eligible applications can be considered for automatic issuance without being routed for manual scrutiny. Applications requiring verification or those that do not meet the automated processing parameters may still be sent to the concerned Regional Authority for manual processing. Certain auto-approved applications may also subsequently be flagged for review under the system’s risk-management parameters.
The change is intended to reduce avoidable manual intervention, improve processing predictability and facilitate faster issuance for eligible exporters.
What Has Changed in the Free Sale and Commerce Certificate Process?
Previously, an exporter submitted an online application and the application was routed to the concerned DGFT Regional Authority for manual analysis, verification and approval.
DGFT has now introduced a rule-based, system-driven workflow with a risk-based management approach for automated issuance.
The change is therefore not simply a move from paper to digital submission. It changes how eligible applications are processed after submission.
Applications that satisfy the applicable automated processing parameters can be considered for automatic issuance, while cases requiring additional scrutiny can continue through the Regional Authority process.
Who Can Use the Automated FSC Facility?
The Free Sale and Commerce Certificate framework applies to exporters seeking certificates for eligible items covered by the relevant Foreign Trade Policy provisions.
The current DGFT mechanism specifically concerns certificates for items not covered under the Drugs & Cosmetics Act, 1940.
Exporters should therefore establish that their product falls within the applicable FSC framework before relying on the automated issuance facility.
The automation does not change the underlying product coverage requirements.
Automatic Issuance Does Not Mean Automatic Approval for Every Application
This is the most important point for exporters.
DGFT has not removed scrutiny from the FSC process altogether.
Applications that require verification, or that do not satisfy the system’s automated processing parameters, may continue to be routed to the concerned Regional Authority for manual processing.
In addition, certain applications that receive automatic approval may subsequently be flagged to the Regional Authority for review under the system’s risk-management parameters.
The new system can therefore be understood as a three-part processing model:
- Eligible applications: considered for automatic issuance.
- Applications requiring verification: routed for manual processing.
- Selected auto-approved applications: may subsequently be reviewed under risk-management parameters.
This approach combines automation with continued regulatory oversight.
Why the Change Matters to Exporters
The immediate significance of the new system is process efficiency.
DGFT states that the automated mechanism is expected to reduce processing time for a significant category of FSC applications and lower the compliance burden associated with the earlier manual process.
For exporters that need a Free Sale and Commerce Certificate for international business, faster processing can make documentation workflows more predictable.
The benefit may be particularly relevant where businesses need certificates repeatedly or where certificate processing forms part of a wider export documentation timeline.
However, exporters should not treat the new facility as a relaxation of the underlying eligibility requirements.
A Rule-Based Approach to Trade Facilitation
Trade Notice No. 24/2026–2027 describes the automated FSC mechanism as part of DGFT’s broader digitisation and automation efforts.
The Trade Notice refers to Paragraph 1.04(d) of the Handbook of Procedures, 2023, which envisages phased implementation of a rule-based, system-driven workflow with a risk-based management approach.
The new FSC mechanism reflects this approach by using system parameters for eligible applications while retaining manual intervention where verification is required.
For exporters, this represents a broader shift in trade administration towards digital processing, automated decision pathways and risk-based scrutiny.
What Exporters Should Check Before Applying
Automation does not remove the need for exporters to provide accurate information and satisfy the applicable framework.
Before applying for an FSC, businesses should check:
- Product eligibility — Confirm that the product falls within the applicable FSC framework.
- Regulatory coverage — Determine whether the product is covered by the Drugs & Cosmetics Act, 1940 or otherwise falls outside the FSC mechanism.
- Application information — Ensure that the information submitted through the DGFT portal is complete and accurate.
- Supporting records — Keep relevant documentation available if the application is selected for verification.
- Post-approval review — Be aware that certain auto-approved applications may subsequently be flagged for Regional Authority review.
The objective should therefore be to use automation while maintaining the same level of compliance discipline expected under the underlying trade framework.
What This Means for Trade Compliance
The practical value of automated FSC issuance goes beyond eliminating some manual steps.
A predictable digital process can reduce administrative friction for exporters and allow trade authorities to concentrate manual scrutiny on applications that require closer examination.
DGFT’s approach also demonstrates how automation and risk management can operate together: straightforward applications can move through a system-driven process, while exceptions and selected cases remain subject to human review.
This distinction is important as more export-related services move towards digital processing.
What to Watch Next
The effectiveness of the automated FSC mechanism will depend on how it performs in actual exporter use.
Key indicators to watch include:
- Processing turnaround times for eligible applications
- The proportion of applications receiving automatic issuance
- The types of applications routed for manual verification
- The operation of post-approval risk-based review
- Further automation of DGFT certification and authorisation processes
For exporters, the immediate benefit is potentially a more efficient and predictable certification process.
For India’s wider trade administration, the FSC initiative signals a continuing move towards rule-based digital processing combined with risk-based oversight.
SOURCE
DGFT Trade Notice No. 24/2026–2027, dated 31 August 2026
Subject: Automated Issuance of Free Sale and Commerce Certificates (FSC)
Government announcement: Ministry of Commerce & Industry / Press Information Bureau, 1 September 2026.
