India Eases RCMC Rule For Low Value Exports
ECONOMY & POLICY

India Eases RCMC Rule For Low Value Exports

The Directorate General of Foreign Trade (DGFT) has proposed exempting low value export consignments from the requirement to hold a registration-cum-membership certificate (RCMC), in a move intended to simplify compliance for small exporters. The proposal targets shipments with a free-on-board value of up to Rs 10,000 and seeks to reduce paperwork for first time exporters and micro, small and medium enterprises. The announcement forms part of a wider government effort to encourage exports through online platforms and emerging delivery channels.

Under the proposed amendment to Paragraph 2.57 of the Foreign Trade Policy 2023, consignments below the specified threshold would not need an RCMC or a Certificate of Registration when applying for authorisations or claiming benefits under the policy. The exemption would apply chiefly to items sent through postal and courier services but would exclude products listed as restricted under India’s ITC (HS) classification. Export promotion councils and other authorised bodies that currently issue RCMCs would remain responsible for registrations above the threshold.

The DGFT issued a trade notice on July 20 inviting comments from exporters, industry associations and other stakeholders and has allowed 10 days for feedback before finalising the amendment. Authorities described the change as a de minimis exemption intended to streamline processes for artisans, e-commerce sellers and individuals making small consignments abroad. By removing the compliance step for low value shipments, the administration expects to lower barriers to entry for novice exporters.

Industry participants and trade bodies are now considering the implications for export claims and benefit eligibility under the FTP and for operational practice at postal and courier outlets. The DGFT proposal remains subject to stakeholder consultation and final approval by the relevant ministry. The proposal has been categorised as under review pending feedback.

The Directorate General of Foreign Trade (DGFT) has proposed exempting low value export consignments from the requirement to hold a registration-cum-membership certificate (RCMC), in a move intended to simplify compliance for small exporters. The proposal targets shipments with a free-on-board value of up to Rs 10,000 and seeks to reduce paperwork for first time exporters and micro, small and medium enterprises. The announcement forms part of a wider government effort to encourage exports through online platforms and emerging delivery channels. Under the proposed amendment to Paragraph 2.57 of the Foreign Trade Policy 2023, consignments below the specified threshold would not need an RCMC or a Certificate of Registration when applying for authorisations or claiming benefits under the policy. The exemption would apply chiefly to items sent through postal and courier services but would exclude products listed as restricted under India’s ITC (HS) classification. Export promotion councils and other authorised bodies that currently issue RCMCs would remain responsible for registrations above the threshold. The DGFT issued a trade notice on July 20 inviting comments from exporters, industry associations and other stakeholders and has allowed 10 days for feedback before finalising the amendment. Authorities described the change as a de minimis exemption intended to streamline processes for artisans, e-commerce sellers and individuals making small consignments abroad. By removing the compliance step for low value shipments, the administration expects to lower barriers to entry for novice exporters. Industry participants and trade bodies are now considering the implications for export claims and benefit eligibility under the FTP and for operational practice at postal and courier outlets. The DGFT proposal remains subject to stakeholder consultation and final approval by the relevant ministry. The proposal has been categorised as under review pending feedback.

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