Government slashes RCMC requirement for export consignments

The Government has established a de minimis exemption from the Registration-cum-Membership Certificate (RCMC) or Certificate of Registration requirement for export consignments with a value up to Rs 3 lakh. This initiative seeks to alleviate the compliance demands for nascent and smaller exporters and to streamline exports via Postal, Courier, and other evolving channels. The Directorate General of Foreign Trade (DGFT) has revised Para 2.57 of the Foreign Trade Policy, 2023, stipulating that an RCMC or Certificate of Registration will not be mandated for export consignments with a Free-on-Board (FOB) value of up to Rs 3 lakh, where such certification would otherwise be necessary under the Foreign Trade Policy. Export consignments surpassing Rs 3 lakh will remain subject to the existing requirement of a valid RCMC or Certificate of Registration, as applicable. Analysis of data spanning the previous five fiscal years (2021-22 to 2025-26) reveals that low-value exports represent a noteworthy volume of shipping bills, yet constitute a diminutive fraction of aggregate export value. For example, shipments up to USD 3,000 comprise 43 per cent of shipping bills but represent only 0.86 per cent of India’s total merchandise export value. Consequently, the exemption is anticipated to encompass a considerable number of small-value export transactions while exerting only a limited effect on the overall export value.