The Directorate General of Foreign Trade (DGFT) has exempted low-value export consignments with a Free-on-Board (FOB) value not exceeding ₹3 lakh from the requirement of obtaining a Registration-cum-Membership Certificate (RCMC) or Certificate of Registration.
The relaxation, which has come into effect immediately, is intended to promote small-value exports, particularly shipments made through postal, courier and other emerging export channels.
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Foreign Trade Policy Amended
The Central Government issued the notification by exercising its powers under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 1.02 of the Foreign Trade Policy, 2023.
Through the notification, a new sub-paragraph (c) has been inserted after sub-paragraph (b) in paragraph 2.57 of the Foreign Trade Policy, 2023.
The newly inserted provision states that, notwithstanding anything contained in the preceding sub-paragraphs, the requirement of an RCMC or Certificate of Registration will not apply to an export consignment whose FOB value does not exceed ₹3 lakh.
Accordingly, eligible exporters sending goods valued at up to ₹3 lakh per consignment will no longer be required to obtain the registration certificate wherever the exemption applies.
Relief Aimed At Small Exporters
The government said the amendment has been introduced to promote small-value exports, especially exports undertaken through post, courier and other emerging channels.
The requirement of obtaining an RCMC can involve registration formalities and compliance costs. The exemption is therefore expected to make it easier for small businesses, individual entrepreneurs, artisans, online sellers and first-time exporters to access international markets through low-value consignments.
The relaxation may particularly benefit exporters using e-commerce and cross-border delivery platforms, where individual shipments are generally smaller in value and are frequently dispatched through postal or courier networks.
₹3 Lakh Limit Applies Per Consignment
The exemption is linked to the FOB value of an individual export consignment. It applies only where that value does not exceed ₹3 lakh.
Export consignments having an FOB value above ₹3 lakh will continue to require a valid RCMC or Certificate of Registration wherever such registration is otherwise mandatory under the Foreign Trade Policy, 2023.
The notification, therefore, does not abolish the RCMC framework or grant a general exemption to an exporter based on annual turnover. Instead, it introduces a de minimis threshold determined with reference to the value of each export consignment.
What Is An RCMC?
An RCMC is a certificate generally issued by an Export Promotion Council, Commodity Board or another designated authority. It establishes that an exporter is registered with the concerned organisation for a particular product or sector.
The certificate may be required for accessing certain authorisations, benefits, concessions or services available under India’s foreign trade framework.
Following the amendment, exporters of consignments valued at ₹3 lakh or less will not have to obtain an RCMC or Certificate of Registration merely for such low-value shipments, subject to the terms of the Foreign Trade Policy.
Other Export Requirements To Continue
The notification grants an exemption specifically from the RCMC or Certificate of Registration requirement. It does not dispense with other legal or procedural requirements applicable to exports.
Exporters may still have to comply with requirements relating to the Importer Exporter Code, customs documentation, product-specific restrictions, prohibited or restricted goods, taxation, payment realisation and regulations administered by other authorities.
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