DGFT Introduces Automated Issuance of Free Sale and Commerce Certificates: What Exporters Need to Know

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has introduced an automated mechanism for the issuance of Free Sale and Commerce Certificates (FSC) through Trade Notice No. 24/2026-2027 dated 31 August 2026.

The move is aimed at reducing processing time, minimizing manual intervention and making the certificate issuance process more efficient for exporters.

What is a Free Sale and Commerce Certificate?

A Free Sale and Commerce Certificate (FSC) is issued by DGFT to exporters for eligible products that are not covered under the Drugs & Cosmetics Act, 1940.

The certificate can be relevant where an overseas buyer or regulatory authority requires confirmation regarding the free sale and commercial status of products in India.

Previously, applications submitted online were routed to the concerned Regional Authority (RA) for manual analysis, verification and approval. According to the Trade Notice, this process could involve substantial processing time.

DGFT Moves Towards Automated Processing

DGFT has been continuously working towards digitisation and automation of its processes to reduce compliance burdens and facilitate smoother international trade.

The latest mechanism is based on a rule-based, system-driven workflow with a risk-based management approach. Eligible applications can now be considered for automatic issuance through the DGFT portal, subject to applicable conditions.

This represents another step towards reducing manual intervention in India's export-related regulatory processes.

Key Features of the New Mechanism

The Trade Notice highlights three important features:

1. Eligible applications may be automatically issued

Applications satisfying the applicable parameters can be considered for automatic issuance of the Free Sale and Commerce Certificate.

This means that qualifying exporters may no longer have to go through the traditional manual processing route in every case.

2. Applications requiring verification can still undergo manual processing

Automation does not mean that every application will necessarily be approved automatically.

Applications that require verification or do not satisfy the parameters prescribed for automated processing may continue to be routed to the concerned Regional Authority for manual processing.

3. Auto-approved applications may subsequently be reviewed

Even applications that are automatically approved may subsequently be flagged for review by the concerned Regional Authority under the system's risk-management parameters.

Therefore, exporters should ensure that the information and documents submitted with the application are accurate and compliant.

What Does This Mean for Exporters?

The new system is expected to provide several practical advantages.

Faster processing: Eligible applications can benefit from automated issuance rather than waiting for manual examination.

Reduced compliance burden: Automation can reduce the need for repeated manual interaction with DGFT authorities.

Paperless processing: The system-driven process supports DGFT's broader objective of digital and paperless trade-related procedures.

Better trade facilitation: Faster availability of the certificate can help exporters respond more efficiently when overseas buyers or authorities require the document.

The Trade Notice specifically states that the new mechanism is intended to enable seamless, paperless processing and expedited turnaround times for trade and industry.

Exporters Should Still Exercise Caution

Although the process has been automated, exporters should not assume that every FSC application will automatically be approved.

The system can route applications for manual verification where the prescribed parameters are not met, and even auto-approved applications may subsequently be selected for review under the risk-management framework.

Therefore, exporters should carefully examine:

• Whether their product is eligible for an FSC;

• The applicable DGFT requirements;

• The accuracy of product and exporter details;

• Supporting documentation;

• The information being submitted through the DGFT portal; and

• Any specific requirements applicable to the destination country or overseas buyer.

How Can adwisez Help Exporters?

Navigating DGFT procedures can still be complicated even when the underlying process becomes automated. adwisez can help exporters understand the applicable requirements and determine the appropriate course of action.

If you are planning to apply for a Free Sale and Commerce Certificate, adwisez can assist with matters such as:

1. Initial Consultation

The first step is to book a consultation with an adwisez consultant.

During the consultation, the consultant can understand your business, product, export requirements and the specific issue for which you require assistance.

The consultant can explain the applicable procedure and guide you regarding the documentation and compliance requirements relevant to your case.

2. Understanding the DGFT Procedure

Adwisez can help you understand the FSC application process, including the relevant DGFT requirements and the manner in which the application should be approached.

3. Application & Documentation Assistance

Where further professional assistance is required, Adwisez can assist with the relevant documentation, application-related work and other procedural requirements, subject to the scope of engagement.

4. Assistance Where an Application Requires Further Processing

If an application does not fall within the automated parameters or is routed for manual verification, professional assistance may become particularly useful.

Adwisez can help you understand the issue and determine the appropriate next steps based on the circumstances of the application.

Important: Consultation and Further Services Are Separate

Adwisez follows a consultation-first model.

You will first need to book a consultation. During the consultation, the consultant will understand your matter and explain the applicable procedure, requirements and possible assistance.

If you subsequently require Adwisez to undertake further professional services or handle the work, those services will be covered under a separate quotation.

The quotation will be issued separately based on the nature, scope and complexity of the work required.

Need Help With DGFT or Export Compliance?

Don't let a complicated DGFT procedure delay your export plans.

Book a consultation with Adwisez first, understand your requirements, and then decide on the further assistance you need.

Adwisez — Get the right professional guidance for your trade, tax and regulatory matters.