Govt waives RCMC requirement for exports up to ₹3 lakh

Under the amended provision, exporters will not need an RCMC or certificate of registration for consignments with a free-on-board (FOB) value of up to ₹3 lakh.

The Centre on Wednesday eased compliance for small-value exports by exempting consignments worth up to ₹3 lakh from obtaining a registration-cum-membership certificate (RCMC) or certificate of registration 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 a de minimis exemption to reduce the compliance burden for micro, small, and medium enterprises (MSMEs), artisans, first-time exporters, and businesses using e-commerce and other emerging export channels, according to official press statement.

Under the amended provision, exporters will not need an RCMC or certificate of registration for consignments with a free-on-board (FOB) value of up to ₹3 lakh. For consignments exceeding ₹3 lakh, the existing requirement will continue wherever applicable under the Foreign Trade Policy.

The move comes against the backdrop of a large number of low-value export transactions accounting for a relatively small share of India’s overall merchandise exports. Data for the five years from 2021-22 to 2025-26 shows that consignments valued at 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 substantial number of small-value export transactions while having only a marginal impact on the overall value of exports.

At present, exporters are generally required to obtain an RCMC or certificate of registration from the relevant Export Promotion Council or Commodity Board, wherever applicable. For new or occasional exporters, this can involve identifying the appropriate registering body, submitting documents and completing the registration process before undertaking exports.

Boost for new, small exporters

The government said removing the upfront requirement for eligible small consignments would allow new exporters to test overseas markets and build an export track record at lower initial compliance costs.

The measure is also expected to facilitate exports through postal and courier channels, as well as e-commerce-led cross-border trade, which can allow smaller businesses to reach international customers without undertaking large-volume shipments.

The exemption, however, is limited to small-value consignments. As exporters scale up and undertake consignments exceeding the ₹3 lakh threshold, they will continue to be required to obtain an RCMC or the relevant certificate of registration, wherever prescribed.

The government said such exporters can subsequently obtain membership of the relevant Export Promotion Councils or Commodity Boards and access export promotion programmes, market-access initiatives and other institutional support.

The measure is also expected to broaden participation in exports among smaller businesses by reducing the initial compliance barrier. Over time, exporters that expand beyond the exemption threshold would enter the existing institutional framework of EPCs and Commodity Boards.

"Exporters' ability to bear compliance costs is better measured by annual export turnover than by the value of an individual shipment. We reiterate our recommendation for an exemption covering exporters with annual exports up to ₹50 lakh, administered automatically through IEC and PAN-linked systems. More fundamentally, access to government export benefits should not depend on purchasing an industry body membership when exporter credentials can already be verified digitally. Export Promotion Councils have an important role, but membership should be driven by the value of their buyer connections, market intelligence and support not by its status as a compulsory gateway to government benefits," said Vinod Kumar, president, India SME Forum.

About the Author

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.