Small exporters get compliance relief as govt removes RCMC requirement for shipments up to Rs 3 lakh

The Indian government has removed the requirement of Registration-cum-Membership Certificate (RCMC) for export shipments valued at up to Rs 3 lakh, according to a statement from the Ministry of Commerce and Industry. This decision aims to ease compliance burdens for small and medium enterprises (MSMEs), first-time exporters, and small businesses engaged in international trade. The Directorate General of Foreign Trade (DGFT) amended Para 2.57 of the Foreign Trade Policy, 2023, to provide this exemption.

Consignments exceeding Rs 3 lakh will still necessitate an RCMC or Certificate of Registration under the policy. This amendment is projected to benefit a substantial number of small-value export transactions. Government data from 2021-22 to 2025-26 indicates that shipments of up to USD 3,000 accounted for 43% of shipping bills but only 0.86% of India's total merchandise export value, highlighting the significance of this relief.

The exemption is intended to provide new and occasional exporters with a more straightforward path to test overseas markets and establish an export record without the upfront obligation of obtaining an RCMC. Typically, exporters must secure an RCMC or Certificate of Registration from the relevant Export Promotion Council or Commodity Board, depending on the nature of the product.

For small and first-time exporters, the process involves selecting the appropriate registering body, submitting necessary documents, and completing the registration before engaging in international trade.

The exemption is anticipated to bolster e-commerce, postal, courier, and other emerging export channels, which are increasingly facilitating businesses to connect with international customers through low-value shipments. As exporters grow and their exports surpass the Rs 3 lakh threshold, they can obtain membership with the relevant Export Promotion Councils or Commodity Boards, thereby accessing export promotion, market access, and other institutional support.

The government's move is specifically designed to expand participation in exports by facilitating small manufacturers, artisans, entrepreneurs, and emerging businesses to enter global markets with reduced initial compliance requirements. The existing framework for larger exports remains unchanged, with RCMC or Certificate of Registration still required for consignments above Rs 3 lakh wherever applicable.

This measure aims to enable emerging exporters to gradually integrate into international markets while allowing them to acquire formal membership with relevant export bodies as their export activities expand.