DGFT Automates Issuance of Free Sale and Commerce Certificates for Exporters

The Directorate General of Foreign Trade (DGFT) has enabled automated issuance of Free Sale and Commerce Certificates (FSC) on the DGFT portal, announced in a Press Information Bureau release dated 1 September 2026. Eligible applications that meet the prevailing parameters can now be issued automatically, without being routed for manual scrutiny by a Regional Authority.

If your business exports products that buyers or foreign regulators want an FSC for, certificate turnaround should get faster — but the eligibility and documentation behind the certificate are unchanged.

What Happened

A Free Sale and Commerce Certificate is a document DGFT issues to exporters, under the Foreign Trade Policy framework, for items not covered under the Drugs & Cosmetics Act, 1940. It certifies that the goods are freely sold in India and can be exported, and many overseas buyers and importing-country regulators ask for one.

Until now, FSCs were issued by DGFT Regional Authorities (RAs) after scrutiny and verification of each application. Under the new mechanism, eligible applications meeting the automated processing parameters are considered for automatic issuance. Applications that need verification, or that do not meet the automated parameters, continue to be routed to the concerned RA for manual processing. DGFT has also retained risk-management controls: even some auto-approved applications may later be flagged to an RA for review.

The change is part of the Government's continuing Ease of Doing Business initiatives for the exporting community.

Why It Matters

For exporters of products such as cosmetics-adjacent goods, food supplements outside drug regulation, industrial and consumer items, and similar categories, an FSC is often a gating document for a shipment or a market registration abroad. Manual processing added waiting time and back-and-forth. Rule-based automation is expected to reduce processing time for a significant share of applications, lower the compliance burden, and make issuance more predictable — without removing oversight where it is warranted.

Who Benefits

Exporters of eligible, non-drug items who regularly need FSCs benefit most, along with their CHAs and consultants who file on their behalf. The measure does not extend to items governed by the Drugs & Cosmetics Act, 1940, which follow their own regulatory route.

Operational Detail

Automation applies to the processing of eligible applications, not to eligibility itself. An application still has to be complete and correct to qualify for auto-issuance. Where the system's parameters are not satisfied — or where verification is needed — the application goes to the RA as before. Because auto-approved cases can be pulled for post-issuance risk review, exporters should keep supporting records ready even after a certificate is issued.

What Exporters Should Do Now

• Confirm whether your product needs an FSC for your target market or buyer, and that it falls outside the Drugs & Cosmetics Act, 1940.
• File complete, accurate applications on the DGFT portal — auto-issuance depends on meeting the system's parameters cleanly.
• Keep product details, composition where relevant, and supporting documents consistent to avoid being routed to manual scrutiny.
• Retain records after issuance in case an auto-approved FSC is flagged for risk-based review.
• Build the (now shorter) FSC timeline into your shipment and market-registration planning, but do not assume instant issuance for every case.

The Bigger Picture

FSC automation is one of several 2026 DGFT portal upgrades — alongside Open API for Certificates of Origin, PSIA/PSIC and Bank Guarantee module enhancements, and automated authorisation-closure data flows from ICEGATE — that shift routine, low-risk processing from manual review to rule-based automation while preserving risk-based checks. The pattern favours exporters who file clean, well-documented applications.

Frequently Asked Questions

What is a Free Sale and Commerce Certificate? A certificate DGFT issues confirming that specified goods (not covered by the Drugs & Cosmetics Act, 1940) are freely sold in India and may be exported. Foreign buyers and regulators often require it.

Does automation mean every FSC is now instant? No. Only eligible applications meeting the automated parameters are auto-issued. Others are routed to a Regional Authority for manual processing.

Are drug and cosmetic products covered? No. Items under the Drugs & Cosmetics Act, 1940 are outside this FSC route and follow their own regulatory process.

Can an auto-issued certificate be reviewed later? Yes. DGFT retains risk-management parameters under which auto-approved applications may be flagged to a Regional Authority for review.

Conclusion

Automated FSC issuance is a genuine efficiency gain for exporters of eligible items, cutting waiting time for clean applications while keeping verification and risk-based oversight in place. The best way to benefit is to file complete, accurate applications and keep records ready.

This article is for general guidance only. Exporters should verify current requirements and eligibility on the DGFT portal and refer to the official DGFT/PIB release before acting.