Government Eases RCMC Requirement for Export Consignments Up to ₹3 Lakh

Key Highlights:

• The Government has introduced a de minimis exemption from the Registration-cum-Membership Certificate (RCMC) requirement for small-value export consignments.
• This exemption applies to export consignments with a Free-on-Board (FOB) value of up to ₹3 lakh.
• The Directorate General of Foreign Trade (DGFT) amended Para 2.57 of the Foreign Trade Policy, 2023 to implement this change.
• The measure aims to reduce the compliance burden for new and small exporters, including MSMEs, artisans, and first-time exporters.
• It facilitates exports through Postal, Courier, and other emerging e-commerce channels, supporting broader participation in international trade.

Detailed Insights:

• The initiative simplifies market entry for emerging exporters by removing the upfront RCMC requirement for eligible small-value consignments.
• It enables new exporters to test overseas markets and build an export track record with significantly lower initial compliance requirements.
• Historically, low-value exports constitute a large percentage of shipping bills but a minimal share of India's total merchandise export value.
• Exporters whose consignments exceed the ₹3 lakh threshold will still be required to obtain RCMC and access broader institutional support.
• This step reinforces the government's commitment to reducing compliance burdens and making international trade more accessible to small businesses.

Key Concepts Involved:

• Registration-cum-Membership Certificate (RCMC): A certificate required by exporters from relevant Export Promotion Councils or Commodity Boards.
• Directorate General of Foreign Trade (DGFT): The agency responsible for formulating and implementing India's foreign trade policy.
• Foreign Trade Policy (FTP): A set of guidelines and instructions established by the DGFT for the import and export of goods in India.
• Free-on-Board (FOB): An international shipping term indicating the point at which costs and risks transfer from seller to buyer.