HomeEXPORTDGFT proposes RCMC exemption for low-value exports to boost MSME and E-Commerce...

DGFT proposes RCMC exemption for low-value exports to boost MSME and E-Commerce Shipments

NEW DELHI : In a move aimed at simplifying export procedures for Micro, Small and Medium Enterprises (MSMEs), artisans, and first-time exporters, the Directorate General of Foreign Trade (DGFT) has proposed easing export norms by exempting low-value export consignments from the requirement of obtaining a Registration-cum-Membership Certificate (RCMC).

In a Trade Notice issued on 20 July, the DGFT invited comments from exporters, industry associations and other stakeholders on a proposed amendment to Paragraph 2.57 of the Foreign Trade Policy (FTP) 2023. Stakeholders have been given 10 days to submit their feedback before the proposal is finalized.

Under the proposed amendment, exporters shipping goods with a Free on Board (FOB) value of up to ₹10,000 would no longer be required to obtain an RCMC or Certificate of Registration while applying for import or export authorisations under the FTP or while availing benefits and concessions under the policy. However, the exemption will not apply to goods classified as “Restricted” under the ITC (HS) classification.

Currently, exporters are generally required to secure an RCMC, issued by Export Promotion Councils (EPCs) or other designated authorities, to access various authorisations, incentives and benefits under the Foreign Trade Policy. The certificate serves as proof of an exporter’s registration with the relevant export promotion body.

According to the DGFT, the proposed amendment seeks to introduce a de minimis exemption for low-value export consignments, particularly those shipped through postal services, courier operators and e-commerce platforms. The initiative is expected to significantly reduce procedural compliance for small exporters while encouraging greater participation in cross-border e-commerce.

The proposal is aligned with the Government of India’s broader objective of expanding India’s export base by making international trade more accessible to MSMEs, artisans, start-ups and individual entrepreneurs. By lowering entry barriers for small-value shipments, the measure is expected to facilitate quicker market access, promote digital exports and strengthen India’s growing e-commerce export ecosystem.

Industry stakeholders believe the proposed relaxation could provide a major boost to small businesses by reducing administrative burdens, lowering compliance costs and encouraging more enterprises to participate in global trade through emerging export channels.

The DGFT stated that the proposed amendment has been prepared under the stakeholder consultation provisions of the Foreign Trade Policy, and feedback received during the consultation period will be considered before the final notification is issued.

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