Automated Issuance of Free Sale Certificates (FSC) on the DGFT Portal

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Dated: 01.09.2026

Automated Issuance of Free Sale Certificates (FSC) on the DGFT Portal

The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, Government of India, has announced a significant advancement in trade facilitation: the automated issuance of Free Sale and Commerce Certificates (FSC) through the DGFT portal. This initiative is designed to streamline export procedures, reduce compliance burdens, and accelerate the processing of export documentation for Indian exporters.

What is a Free Sale and Commerce Certificate (FSC)?

A Free Sale and Commerce Certificate is an official document issued to exporters for products not covered under the Drugs & Cosmetics Act, 1940. It certifies that the specified goods are freely sold in India and are eligible for export, which is often a requirement for regulatory authorities in importing countries.

Previous Process: Manual and Time-Consuming

Traditionally, exporters would apply online for an FSC, but the process involved manual analysis, verification, and approval by the concerned Regional Authority (RA). This manual workflow resulted in substantial processing times and increased administrative overhead for both exporters and government officials.

The Shift to Automation: Key Features

The DGFT’s new automated system, as outlined in Trade Notice No. 24/2026-2027, introduces a rule-based, system-driven workflow with a risk-based management approach. Here are the main features:

Automatic Issuance for Eligible Applications
- Applications that meet the established criteria are automatically processed and issued FSCs without manual intervention, ensuring faster turnaround times.
Risk-Based Management
- The system uses risk parameters to determine which applications can be auto-approved and which require further verification.
- Applications that do not meet automated processing parameters or require additional scrutiny are routed to the concerned RA for manual processing.
Post-Issuance Review
- Some auto-approved applications may be flagged for subsequent review by the RA under the system’s risk management protocols, ensuring compliance and oversight.

Benefits for Exporters and Trade

Reduced Processing Time: Automation eliminates bottlenecks, enabling exporters to obtain FSCs more quickly.
Paperless and Seamless Workflow: The entire process is digitized, reducing paperwork and the need for physical visits to government offices.
Enhanced Transparency: A rule-based system ensures consistent and transparent decision-making.
Improved Trade Facilitation: Faster documentation supports exporters in meeting international market requirements efficiently.

Implementation and Compliance

The automated FSC issuance is part of DGFT’s broader strategy to digitize and automate trade processes, as envisaged in Paragraph 1.04 (d) of the 2023 Handbook of Procedures. Exporters are encouraged to familiarize themselves with the updated process and ensure their applications meet the eligibility criteria for automatic processing.

Conclusion

The introduction of automated FSC issuance on the DGFT portal marks a major step forward in India’s efforts to modernize export procedures. By leveraging technology, the government aims to create a more business-friendly environment, supporting exporters in their global endeavors.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: DGFT

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