DGFT Automates Free Sale Certificate for Export from India

The Directorate General of Foreign Trade (DGFT) has introduced an automated mechanism for the issuance of Free Sale and Commerce Certificates (FSC). Eligible exporters will be able to escape existing manual verification process for Free Sale Certificate for Export from India. The same has been notified by the Department of Commerce, Ministry of Commerce and Industry vide notification dated 31st August, 2026. 

The DGFT issues Free Sale Certificate for Export of items that are not covered under the Drugs & Cosmetics Act, 1940. Earlier, applications submitted online were routed to the concerned Regional Authority (RA) for manual analysis, verification and approval, resulting in additional processing time. 

According to the Trade Notice, the DGFT is now enabling automated issuance of FSCs through the DGFT portal, subject to applicable conditions. The initiative forms part of the Directorate's broader efforts towards digitisation and automation of trade-related processes and reduction of compliance burdens. 

Risk-Based Automated Processing 

The automated mechanism envisaged under the Handbook of Procedures, 2023 provides for the phased implementation of a rule-based, system-driven workflow incorporating a risk-based management approach. 

Under the new mechanism: 

• Eligible applications will be considered for automatic issuance in accordance with the prevailing framework.  
• Applications that require verification or do not meet the prescribed automated-processing parameters may continue to be routed to the concerned Regional Authority for manual processing.  
• Certain applications that are automatically approved may subsequently be flagged for review by the concerned Regional Authority based on the system's risk-management parameters.  

Paperless and Expedited Trade Processing 

The DGFT stated that the automated issuance mechanism will transition FSC processing from manual verification to a system-driven workflow, facilitating paperless processing and reducing turnaround time for exporters and other stakeholders in trade and industry. 

The initiative is expected to streamline the regulatory process for obtaining Free Sale and Commerce Certificates while retaining manual scrutiny for applications requiring additional verification or falling outside the automated processing parameters.