Centre eases export compliance for shipments up to Rs 3 lakh, seeks 5-year RoDTEP extension
Exporters will not need a registration certificate for shipments valued up to three lakh rupees. This change reduces compliance burdens for new and small businesses entering overseas markets. The government is also seeking a five-year extension for the RoDTEP export promotion scheme. Discussions are underway to ensure predictability and examine potential changes to the mission. A framework for…
New Delhi: The Centre has announced that exporters will no longer be required to obtain a Registration-cum-Membership Certificate (RCMC) for shipments valued up to ₹3 lakh. This decision aims to lessen the compliance burden for new and small exporters, enabling them to explore outbound shipments via postal, courier services and emerging channels.
According to the commerce and industry ministry, consignments valued at $3,000 constitute 43% of shipping bills but contribute to only 0.86% of India's total merchandise export value. With this relaxed compliance requirement, emerging exporters can test overseas markets and establish a foundation for export activities with lower initial obligations.
As exporters' operations expand and their shipments exceed the ₹3 lakh threshold, they will be able to attain membership in relevant Export Promotion Councils or Commodity Boards, granting access to export promotion, market access, and other institutional support services. The ministry recently requested a five-year extension for the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, of which the budget allocation was ₹18,232 crore in FY26, and was increased to ₹10,000 crore for the current fiscal year.
The scheme is set to conclude on September 30, and the ministry is engaged in discussions with the department of expenditure to establish a predictable framework for the upcoming fiscal year, according to an official.
The RoDTEP Scheme, launched in 2021, offers refunds of taxes, duties, and levies incurred by exporters during manufacturing and distribution processes. These refunds are not reimbursed under other mechanisms at the central, state, or local levels, and range from 0.3-3.9%. The commerce and industry ministry is prepared to make adjustments to the ₹25,060-crore Export Promotion Mission based on feedback received from exporters.
The ministry is actively developing a framework for Sectoral Brand India, including factoring services, and is in ongoing discussions with factoring service providers.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
