DGFT Automates Free Sale and Commerce Certificates

The Directorate General of Foreign Trade (DGFT) has introduced automated issuance of Free Sale and Commerce Certificates (FSC) through Trade Notice No. 24/2026-2027. The system applies to exporters seeking certificates under Paragraph 2.34 of the Handbook of Procedures for products that do not fall under the Drugs & Cosmetics Act, 1940.

Free Sale and Commerce Certificates

Free Sale and Commerce Certificates are trade documents issued for products that are freely sold in the domestic market and are often required for export clearance in foreign markets. In India, the DGFT functions under the Ministry of Commerce and Industry and issues trade-related authorisations through its regional offices.

Automated Issuance Process

The new workflow replaces routine manual examination, verification, and approval by Regional Authorities with a phased electronic process. Eligible online applications that satisfy all prescribed system parameters now receive automatic certificate generation without manual intervention.

Applications that do not satisfy the automated parameters, or that require additional verification, continue to be routed to the concerned Regional Authority for manual processing. The framework also includes a post-approval review mechanism under specified risk-management parameters for selected auto-approved applications.

Handbook of Procedures and Regulatory Context

Paragraph 2.34 of the Handbook of Procedures provides the procedural basis for FSC issuance. The Handbook of Procedures is part of India’s foreign trade administration framework under the Foreign Trade Policy and related DGFT notifications.

The Drugs & Cosmetics Act, 1940 regulates drugs and cosmetics in India, and products outside its scope may still require trade certification for export-related purposes. The DGFT uses electronic systems for several export and import services under its online portal.

Important Facts for Exams

• The DGFT is a statutory authority under the Ministry of Commerce and Industry.
• The Handbook of Procedures contains operational rules for foreign trade applications in India.
• The Drugs & Cosmetics Act, 1940 is a central law governing drugs and cosmetics in India.
• Regional Authorities of the DGFT handle manual scrutiny in cases that do not qualify for system-based approval.

Digital Trade Facilitation

Paperless trade is a customs and trade facilitation practice that uses electronic documents instead of physical paperwork. Automated certificate issuance is part of India’s wider move towards digital processing in export administration.