Govt eases entry norm for small exporters for consignments up to Rs 3 lakh
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New Delhi, Sep 16 : The government has introduced exemption from the requirement of Registration-cum-Membership Certificate (RCMC) or Certificate of Registration for small-value export consignments up to Rs 3 lakh, according to a Commerce Ministry statement issued on Wednesday.
The measure is aimed at reducing the compliance burden for new and small exporters and facilitating exports through postal, courier as well as e-commerce 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 Rs 3 lakh, wherever such certificate is otherwise required under the Foreign Trade Policy.
Export consignments exceeding Rs 3 lakh will continue to require a valid RCMC or Certificate of Registration, wherever applicable, the statement said.
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 $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 Rs 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 statement said.
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 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 Rs 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 statement added.
The measure is aimed at reducing the compliance burden for new and small exporters and facilitating exports through postal, courier as well as e-commerce 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 Rs 3 lakh, wherever such certificate is otherwise required under the Foreign Trade Policy.
Export consignments exceeding Rs 3 lakh will continue to require a valid RCMC or Certificate of Registration, wherever applicable, the statement said.
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 $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 Rs 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 statement said.
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 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 Rs 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 statement added.
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Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.