DGFT Automates Free Sale and Commerce Certificate Issuance
Exporters dealing in items not covered under the Drugs & Cosmetics Act, 1940 have long relied on Free Sale and Commerce Certificates (FSC) to prove their goods are freely sold and marketed in India. Until now, every FSC application — however routine — had to pass through manual scrutiny at the concerned Regional Authority (RA), often stretching processing timelines.
That is set to change. Through Trade Notice No. 24/2026-2027, dated August 31, 2026, the Directorate General of Foreign Trade (DGFT) has announced the automated issuance of FSCs on its portal, marking another step in the government’s push toward paperless, system-driven trade facilitation.
What Is the Free Sale and Commerce Certificate?
An FSC is issued under Paragraph 2.34 of the Handbook of Procedures (HBP). It certifies that a product not regulated by the Drugs & Cosmetics Act is freely sold in the domestic market, a document frequently required by overseas buyers and regulators before importing Indian goods.
The Existing Process
Previously, once an exporter applied online, the file was routed to the relevant RA for manual analysis, verification, and approval — a process that added to compliance timelines despite the application itself being digital.
Why the Shift to Automation?
DGFT has been steadily digitizing its systems to cut compliance burdens and enable frictionless trade. This latest move builds on Paragraph 1.04(d) of the HBP, 2023, which envisioned a phased rollout of rule-based, system-driven workflows backed by risk-based management.
Key Features of the Automated Mechanism
The Trade Notice outlines three core elements of the new system:
- Automatic issuance for eligible applications — Applications meeting the prevailing framework will be approved automatically, without manual intervention.
- Manual routing where needed — Applications that require verification, or that fall outside the automated processing parameters, will continue to be sent to the concerned RA for manual review.
- Post-issuance risk flagging — Even auto-approved applications aren’t entirely free of oversight. Certain cases may be flagged to the RA afterward for review under the system’s risk-management parameters.
Note:
This automation does not remove human oversight altogether — it redistributes it. Routine, low-risk applications move faster through the system, while the RA’s attention is concentrated on cases that genuinely need scrutiny, whether flagged before or after approval.
Who Should Pay Attention?
This notice is addressed to all exporters and members of trade and industry, export promotion councils and trade associations, and all DGFT Regional Authorities — effectively, anyone who applies for or processes FSCs.
Conclusion
With this notice, DGFT signals a broader shift from manual verification to a system-driven, risk-based workflow for Free Sale and Commerce Certificates. For exporters, the practical upside is straightforward: faster, more predictable turnaround times on a certificate that is often a gatekeeper for international trade. As DGFT continues rolling out automation across its processes, this move offers a glimpse of how routine export compliance is likely to evolve — quicker for the many, with scrutiny reserved for the few that need it.
Notification Reference:
DGFT
Trade Notice No. 24/2026-2027
31/08/2026