Government waives RCMC requirement for exports up to ₹3,000 | Today’s news
The Center on Wednesday eased compliance for small value exports by exempting consignments worth up to ₹3 lakh from obtaining Registration Certificate with Membership (RCMC) or Foreign Trade Policy Registration Certificate.
The Directorate General of Foreign Trade (DGFT) has amended paragraph 2.57 of the Foreign Trade Policy 2023 to introduce a de minimis exemption to reduce the burden on micro, small and medium enterprises (MSMEs), artisans, first-time exporters and businesses using e-commerce and other emerging export channels, according to an official press release.
Under the amended provision, exporters will not need an RCMC or a certificate of registration for shipments with an FOB (free-on-board) value of up to ₹3 lakhs. For shipments over ₹3 lakh, the existing requirement will continue wherever possible under the foreign trade policy.
The move comes against the backdrop of a large number of low-value export transactions that account for a relatively small share of India’s total merchandise exports. Figures for the five years from 2021-22 to 2025-26 show that shipments worth up to $3,000 accounted for 43% of shipping bills but only 0.86% of the country’s total merchandise export value.
The exemption is expected to cover a significant number of low-value export transactions, with only a marginal impact on the total value of exports.
Currently, exporters are generally required to obtain an RCMC or registration certificate from the relevant Export Promotion Council or Commodity Board whenever possible. For new or occasional exporters, this may include identifying the relevant registration authority, submitting documents and completing the registration process before exporting.
Support for new, small exporters
The government said removing the upfront requirement for eligible small shipments would allow new exporters to test overseas markets and build export records with lower upfront compliance costs.
The measure is also expected to facilitate exports through postal and courier channels, as well as e-commerce-driven cross-border trade, which can allow smaller businesses to reach international customers without having to make bulk shipments.
However, the exemption is limited to low-value shipments. As exporters scale up and take over shipments ₹3 lakh, they will continue to be required to obtain RCMC or relevant registration certificate wherever prescribed.
The government said such exporters can then obtain membership of the relevant Export Promotion Councils or Commodity Councils and gain access to export promotion programmes, market access initiatives and other institutional support.
The measure is also expected to expand export participation among smaller businesses by reducing the initial hurdle of compliance. Over time, exporters who crossed the exemption threshold would come under the existing institutional framework of EPCs and Commodity Boards.
“The ability of exporters to bear the costs of compliance is better measured by annual export turnover than by the value of an individual shipment. We reiterate our recommendation for an exemption for exporters with annual exports of up to ₹50 lakh, managed automatically through IEC and PAN systems. More fundamentally, access to government export benefits should not depend on purchasing membership of an industry body when an exporter’s credentials can already be digitally verified. Export promotion councils have an important role to play, but membership should be driven by the value of their links to buyers, market intelligence and support, not their status as a mandatory gateway to government benefits,” said Vinod Kumar, President, India SME Forum.
