Ø IEC and RBI Exchange Control Remains
Ø Export Incentives like RoDTEP
and Drawback will Stand, only EPC Goes
Ø RCMC Exemption
Lowers Entry Barriers for MSMEs and First-Time Exporters
·
De
minimis exemption:
Government has exempted export consignments with FOB value up to ₹3 lakh
from the requirement of Registration-cum-Membership
Certificate (RCMC) or Certificate of Registration, wherever
such certificate is otherwise required under the FTP.
·
FTP
amendment: DGFT
has amended Para 2.57 of
the Foreign Trade Policy (FTP), 2023 to introduce the
exemption.
·
Above
₹3 lakh:
Export consignments exceeding
₹3 lakh will continue to require a valid RCMC/Certificate
of Registration, wherever applicable.
·
Target
beneficiaries: The
measure is particularly aimed at MSMEs,
artisans, small businesses, entrepreneurs, first-time and occasional exporters.
·
Lower
compliance burden: New
exporters can undertake eligible small-value exports without first identifying
the relevant Export Promotion Council/Commodity Board and completing the RCMC
registration process.
·
Historical
basis:
During 2021-22 to 2025-26,
consignments up to USD
3,000 accounted for about 43% of shipping bills but only 0.86% of total
merchandise export value.
·
E-commerce
boost: The
exemption is expected to facilitate low-value
exports through Postal, Courier and other emerging export channels,
including e-commerce.
·
Market
testing: Small
businesses can use the simplified regime to test overseas markets and build an export track record
with lower initial compliance requirements.
·
Scaling
up: Once
exporters expand and consignments exceed ₹3 lakh, they can obtain RCMC
membership from the relevant EPCs/Commodity
Boards and access their export-promotion and market-access
services.
·
EPC
participation: The
measure may broaden the exporter base of Export
Promotion Councils and Commodity Boards by enabling more MSMEs
to enter international markets before undertaking formal membership.
·
Existing
framework retained: The
relaxation is strictly
limited to consignments up to ₹3 lakh; the existing
RCMC/registration requirement remains applicable to higher-value consignments
wherever prescribed.
Effect
of this measure: The
amendment creates a simpler entry route for small and first-time exporters,
particularly through postal,
courier and e-commerce channels, while retaining the existing
registration framework for larger exports.
The Government
has introduced a de minimis exemption from the requirement of
Registration-cum-Membership Certificate (RCMC) or Certificate of Registration
for small-value export consignments up to ₹3 lakh. The measure is aimed
at reducing the compliance burden for new and small exporters and facilitating
exports through Postal, Courier and other emerging channels.
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 having a Free-on-Board (FOB) value
of up to ₹3 lakh, wherever such certificate
is otherwise required under the Foreign Trade Policy. Export consignments
exceeding ₹3 lakh will continue to require a valid RCMC or Certificate of
Registration, wherever applicable.
Historical
data for the last five years (2021-22 to 2025-26) indicates that low-value
exports account for a significant share of shipping bills but a very small
proportion of the overall export value. Consignments up to USD 3,000, for
instance, account for 43 per cent of shipping bills but only 0.86 per cent of
India’s total merchandise export value. 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 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 under the Foreign Trade Policy. For new or occasional
exporters undertaking small-value consignments, this involves an additional
compliance step, including identifying the appropriate registering body,
submitting the prescribed documents and completing the registration process
before undertaking exports.
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 will enable
emerging exporters to test overseas markets and establish an export track
record with lower initial compliance requirements.
As exporters
expand their operations and their consignments move beyond the ₹3 lakh
threshold, they can obtain membership of the relevant Export Promotion Councils
or Commodity Boards and access export promotion, market access and other
institutional support services.
The measure
offers lower entry barriers for new exporters, enabling first-time and
occasional exporters to undertake eligible small-value exports without
obtaining an RCMC upfront. It is particularly beneficial for MSMEs and small
businesses, as small manufacturers, artisans, entrepreneurs and emerging
exporters will be able to explore overseas markets and build an export track
record with lower initial compliance requirements.
The exemption
will also facilitate e-commerce and other emerging export channels. It is
expected to support low-value exports through Postal, Courier and other
emerging channels that are increasingly enabling businesses to reach
international customers.
The measure
will support the gradual integration of emerging exporters into global markets.
As exporters scale up and undertake higher-value consignments, they can obtain
RCMC membership and access the wider range of export promotion and
institutional support provided through Export Promotion Councils and other
prescribed bodies.
At the same
time, the existing framework for larger exports remains unchanged. The
exemption is limited to small-value consignments, while the requirement of RCMC
or Certificate of Registration will continue for consignments exceeding
₹3 lakh, wherever otherwise applicable.
The measure
will also help broaden the base of Export Promotion Councils and Commodity
Boards by encouraging greater participation of MSMEs in exports. By lowering
the initial compliance barrier, more MSMEs will be able to enter international
markets and, as their export operations scale beyond the ₹3 lakh
threshold, obtain RCMC and become members of the relevant EPCs or Commodity
Boards to access export promotion activities, market access initiatives and
other institutional support.
The measure
reinforces the Government’s commitment to reducing the compliance burden,
broadening participation in exports and making international trade more
accessible to MSMEs, first-time exporters and emerging businesses.