New Delhi: The government has eased compliance requirements for small exporters by exempting export consignments valued up to Rs 3 lakh from the requirement of a Registration-cum-Membership Certificate (RCMC) or Certificate of Registration, wherever the certificate is otherwise mandatory under the Foreign Trade Policy.
The Directorate General of Foreign Trade (DGFT) has amended Para 2.57 of the Foreign Trade Policy, 2023, to introduce the de minimis exemption. Export consignments exceeding Rs 3 lakh will continue to require a valid RCMC or Certificate of Registration wherever applicable.
The move is aimed at reducing entry barriers for MSMEs, artisans, small businesses and first-time exporters and facilitating exports through postal, courier and emerging e-commerce channels.
Low-value exports account for large share of shipments
Government data for the five-year period from 2021-22 to 2025-26 show that low-value exports constitute a significant proportion of shipping bills but a relatively small share of India’s overall merchandise export value.
Consignments valued up to $3,000 accounted for around 43% of shipping bills but only 0.86% of the country’s total merchandise export value during the period, according to the government.
The exemption is therefore expected to cover a substantial number of small-value export transactions while having only a marginal impact on the overall value of merchandise exports.
Boost for first-time exporters
Under the existing system, exporters requiring an RCMC generally have to register with the relevant Export Promotion Council or Commodity Board before undertaking exports. For new or occasional exporters, the process can involve additional documentation and compliance.
The new exemption will allow eligible exporters to test overseas markets and build an export track record without obtaining an RCMC upfront.
As businesses expand and consignments cross the Rs 3 lakh threshold, exporters can obtain membership of the relevant Export Promotion Councils or Commodity Boards and access institutional support for export promotion and market access.
Push for e-commerce exports
The government expects the measure to give a boost to low-value exports through postal and courier channels, as well as e-commerce and other emerging export routes.
It also aims to encourage greater participation of MSMEs in international trade and gradually integrate emerging exporters into the formal export ecosystem.
The existing RCMC framework for higher-value consignments remains unchanged, with certificates continuing to be required for consignments exceeding Rs 3 lakh wherever applicable under the Foreign Trade Policy.
