The government has introduced a de minimis exemption from the requirement of a Registration-cum-Membership Certificate (RCMC) or Certificate of Registration for small-value export consignments up to Rs 3 lakh, aimed at reducing the compliance burden for new and small exporters and facilitating exports through postal, courier and other emerging channels.
What change has DGFT made to the Foreign Trade Policy?
The Directorate General of Foreign Trade (DGFT) has amended Para 2.57 of the Foreign Trade Policy, 2023, to provide that RCMC or Certificate of Registration will not be required for export consignments with a Free-on-Board (FOB) value of up to Rs 3 lakh, wherever such certification is otherwise required under the policy. Export consignments exceeding Rs 3 lakh will continue to require a valid RCMC or Certificate of Registration wherever applicable.
How significant is the volume of small-value exports affected by this change?
Historical data spanning five years, from 2021-22 to 2025-26, shows that low-value exports account for a significant share of shipping bills but a very small proportion of overall export value. Consignments up to USD 3,000, for instance, account for 43 percent of shipping bills but only 0.86 percent of India’s total merchandise export value. As a result, the exemption is expected to cover a substantial number of small-value transactions while having only a marginal impact on the overall value of exports.
What compliance burden did the earlier requirement impose on small exporters?
Exporters have generally been required to obtain an RCMC or Certificate of Registration from the relevant Export Promotion Council or Commodity Board wherever applicable under the Foreign Trade Policy. For new or occasional exporters handling small-value consignments, this involved an additional compliance step, including identifying the appropriate registering body, submitting prescribed documents and completing registration before undertaking exports.
How will this benefit MSMEs and first-time exporters?
The measure provides MSMEs, artisans, small businesses and first-time exporters with a simpler entry point into international markets by removing the requirement to obtain an RCMC upfront for eligible small-value consignments. This is expected to enable emerging exporters to test overseas markets and build an export track record with lower initial compliance requirements, before eventually obtaining membership of relevant Export Promotion Councils or Commodity Boards as their consignments scale beyond the Rs 3 lakh threshold.
What does this mean for e-commerce and emerging export channels?
The exemption is also expected to facilitate exports through postal, courier and other emerging channels that are increasingly helping businesses reach international customers, supporting the broader growth of e-commerce-driven export activity from India.
What does this mean for the broader export ecosystem?
The existing framework for larger exports remains unchanged, with the RCMC requirement continuing to apply to consignments exceeding Rs 3 lakh wherever otherwise applicable. Over time, the measure is expected to broaden the base of Export Promotion Councils and Commodity Boards by encouraging greater MSME participation in exports, with businesses gaining access to export promotion activities, market access initiatives and institutional support once they scale beyond the exemption threshold and formally register.
