DGFT Automates Free Sale and Commerce Certificate Issuance: Faster Approvals for Non-Drug Exporters

The Directorate General of Foreign Trade (DGFT) has moved the Free Sale and Commerce Certificate (FSC) onto an automated, system-based issuance track. Under Trade Notice No. 24/2026-27, dated 31 August 2026, qualifying FSC applications are now issued automatically through the DGFT portal, bypassing manual scrutiny by Regional Authorities, with risk-based checks applied after issuance. For exporters of non-drug, non-cosmetic goods that need an FSC to enter regulated overseas markets, this should cut turnaround time and administrative delay.

What Happened

An FSC certifies that a product is freely sold in India and is used by exporters whose goods fall outside the Drugs and Cosmetics Act, 1940 — many foreign buyers and regulators ask for it as evidence that a product is lawfully marketed in the country of origin. Previously, every FSC request went to a Regional Authority for manual review before approval.

Under the new system:

• Eligible applications receive automatic, system-generated issuance in line with the prevailing regulatory framework, "bypassing manual scrutiny entirely."
• High-risk or non-standard applications continue to go to Regional Authorities for manual assessment.
• Post-approval risk checks may flag issued certificates for later review, keeping an audit trail without delaying routine cases up front.

The result is faster certificate turnaround for the large share of straightforward applications, while retaining human review where the risk profile warrants it.

Why / Background

The FSC is a recurring documentation requirement for exporters of goods such as food products, nutraceuticals, certain devices and consumer goods destined for markets that demand proof of free domestic sale. Manual, discretionary processing created bottlenecks and uneven turnaround. Automating rule-based issuance is consistent with DGFT's broader digitisation drive — the same thinking behind online Certificate-of-Origin issuance and the recent RCMC exemption for low-value consignments — aimed at reducing friction and processing time for exporters.

Who Benefits

Exporters of non-drug, non-cosmetic products that require an FSC for their destination markets gain the most: faster issuance, fewer back-and-forths with Regional Authorities, and more predictable lead times. Export consultants and CHAs who prepare these certificates benefit from a smoother, more automated workflow. Exporters of drugs and cosmetics are outside the scope of the FSC and continue under their respective regulatory regimes (e.g., CDSCO).

What Exporters Should Do Now

• File FSC applications through the DGFT portal and ensure your product genuinely falls outside the Drugs and Cosmetics Act, 1940, so it qualifies for automated issuance.
• Get the application data right — automated issuance rewards complete, accurate submissions; errors or non-standard cases will be routed to manual review.
• Retain supporting evidence of free domestic sale and product compliance, since post-issuance risk checks can flag certificates for later verification.
• Build the faster turnaround into buyer commitments where an FSC is on the critical path for market entry.
• Confirm destination-market acceptance — some regulators have specific format or legalisation requirements for an FSC.

The Bigger Picture

Automating FSC issuance is a small but telling piece of India's export-facilitation agenda: shifting routine, rule-based approvals from manual queues to system issuance, while concentrating human scrutiny on genuine risk. For exporters, the practical gain is time — but the trade-off is that automated issuance presumes accurate self-presentation, backed by evidence that may be checked afterwards. Clean applications and good records are what turn the speed into a reliable advantage.

Frequently Asked Questions

What is a Free Sale and Commerce Certificate? It certifies that a product is freely sold in India, used by exporters of goods outside the Drugs and Cosmetics Act, 1940 as proof of lawful domestic sale for certain foreign markets.

Does automation mean no review at all? No. Routine, eligible applications are issued automatically, but high-risk or non-standard cases still go to Regional Authorities, and post-issuance risk checks apply.

Which products are covered? Goods falling outside the Drugs and Cosmetics Act, 1940. Drugs and cosmetics are handled under their own regulatory regimes.

Where do I apply? Through the DGFT portal, per Trade Notice No. 24/2026-27.

Conclusion

By automating issuance of the Free Sale and Commerce Certificate, DGFT has removed a routine bottleneck for exporters of non-drug, non-cosmetic goods, speeding a document that often sits on the critical path to market entry. File accurately through the portal, keep your evidence of free domestic sale on hand, and use the faster turnaround to firm up buyer timelines.

This summary is for general guidance only. Verify the current process, eligibility and any format requirements against DGFT Trade Notice No. 24/2026-27 on the DGFT portal (dgft.gov.in) before acting.