Government Simplifies Overseas Shipping For Small Exporters, Relaxes Entry Requirement For Consignments Worth Up To ₹3 Lakh

The Indian government has streamlined regulations for small exporters, eliminating the need for mandatory registration certificates on export consignments valued at up to ₹3 lakh. The Commerce Ministry announced that businesses will no longer require a Registration-cum-Membership Certificate or Certificate of Registration for such shipments, unless specified otherwise under the Foreign Trade Policy.

The Directorate General of Foreign Trade amended Paragraph 2.57 of the Foreign Trade Policy 2023 to implement this exemption. However, shipments with a free-on-board value exceeding ₹3 lakh will still need the aforementioned certificates, where applicable. The reform aims to ease entry barriers for MSMEs, artisans, small manufacturers, entrepreneurs, and first-time exporters, covering shipments via postal, courier, e-commerce, and other emerging export channels.

Government data from 2021-22 to 2025-26 revealed that low-value consignments made up 43% of shipping bills but contributed only 0.86% to India's total merchandise exports. The exemption can thus benefit numerous transactions while having a minimal impact on aggregate export value. Previously, businesses had to register with Export Promotion Councils or Commodity Boards before shipping goods, which involved identifying registering authorities, filing documents, and fulfilling formalities before entering overseas markets.

The relaxed norms allow eligible firms to test global demand and establish an export record with lower initial compliance costs. Once shipments surpass the ₹3 lakh threshold, exporters can obtain the necessary registration and gain access to market development programs, export promotion initiatives, and institutional support.