Overview: The Government has eased export compliance for small-value consignments by exempting shipments with Free-on-Board (FOB) value up to ₹3 lakh from the requirement of Registration-cum-Membership Certificate (RCMC) or Certificate of Registration, wherever such certification is otherwise required under the Foreign Trade Policy. The relaxation is particularly relevant for MSMEs, artisans, first-time exporters, small manufacturers and e-commerce businesses entering overseas markets through low-value shipments.
The Directorate General of Foreign Trade (DGFT) has introduced a de minimis exemption for low-value exports. Under the revised provision, an Registration-cum-Membership Certificate (RCMC) or Certificate of Registration is not required for an export consignment where the Free on Board (FOB) value does not exceed ₹3 lakh, where such certification would otherwise have been required under the FTP. The change is effective immediately.
For consignments with an FOB value above ₹3 lakh, the existing requirement continues wherever an RCMC or Certificate of Registration is otherwise applicable.
The change removes one compliance step for businesses that are starting with small or occasional export orders.
Who Can Benefit From the RCMC Exemption?
The relaxation is particularly relevant to businesses that begin international sales through smaller consignments.
- MSMEs and first-time exporters can test overseas demand without obtaining an RCMC for eligible low-value consignments where the certificate would otherwise have been required.
- Artisans and small manufacturers selling handmade, specialised or niche products can use smaller shipments to develop overseas markets.
- E-commerce and direct to consumer businesses sending individual orders to international customers may benefit where their consignments fall within the ₹3 lakh FOB limit.
- Small and occasional exporters can enter international markets gradually instead of taking on the additional RCMC compliance at the initial stage.
- Businesses using postal, courier and other emerging export channels are also among the intended beneficiaries of the relaxation.
As export volumes increase, businesses should review whether an RCMC or Certificate of Registration becomes applicable based on the nature of their products and the relevant Export Promotion Council or Commodity Board.
Why the ₹3 Lakh Exemption Matters
The change is significant because small-value export transactions account for a large number of export filings even though they represent a relatively small share of India’s overall merchandise export value.
Government data for 2021-22 to 2025-26 shows that consignments valued up to US$ 3,000 accounted for around 43% of shipping bills but only 0.86% of India’s merchandise export value. This indicates the scale of low-value export transactions within the broader export ecosystem.
The exemption therefore targets a segment where the number of transactions is high but the individual shipment value is relatively low.
| Export Situation | RCMC Position |
|---|---|
| FOB value up to ₹3 lakh | RCMC or Certificate of Registration not required where such certification would otherwise apply |
| FOB value above ₹3 lakh | Existing RCMC or Certificate of Registration requirement continues wherever applicable |
| Business scaling exports | Review the applicable Export Promotion Council, Commodity Board and product-specific requirements |
What Should Exporters Do Now?
The exemption is limited to the specified RCMC or Certificate of Registration requirement. It does not remove other export-related obligations.
Businesses must continue to comply with applicable Import Export Code (IEC), customs, GST, product-specific and export documentation requirements.
Exporters planning to scale should also review their RCMC and exporter registrations before their shipments regularly move beyond the ₹3 lakh threshold or their product-specific requirements otherwise trigger registration.
It is also important to remember that the ₹3 lakh limit is based on the FOB value of the individual export consignment, not simply the exporter’s annual turnover.
FAQs
Is RCMC required for exports up to ₹3 lakh?
No. Under the amended rule, an RCMC or Certificate of Registration is not required for an export consignment with an FOB value of up to ₹3 lakh, where such certification would otherwise have been required under the policy.
Does the exemption apply to consignments above ₹3 lakh?
No. Once the FOB value exceeds ₹3 lakh, the existing requirement for an RCMC or Certificate of Registration continues wherever it is otherwise applicable under the Foreign Trade Policy.
Does the exemption remove all export compliance requirements?
No. The relaxation is specifically for the RCMC or Certificate of Registration requirement covered by the amended provision. Exporters must continue to meet other applicable requirements relating to IEC, customs, GST, product-specific regulations and export documentation.
Does every exporter need an RCMC?
Not necessarily. RCMC requirements depend on the applicable provisions of the Foreign Trade Policy and the nature of the exporter’s products and activities. The new exemption provides additional relief where an RCMC or Certificate of Registration would otherwise have been required.
SetIndiaBiz Support
The new RCMC exemption reduces one compliance requirement for small-value exporters, MSMEs, artisans and first-time exporters. However, exporters still need to identify the registrations and documentation applicable to their products, export channel and shipment value.
SetIndiaBiz experts help help export businesses review IEC, RCMC requirements, export documentation and other applicable compliances before entering or expanding in overseas markets.
For businesses starting small, the immediate question is whether a particular consignment falls within the ₹3 lakh FOB exemption and whether any separate product-specific registration continues to apply. As export activity grows, the applicable RCMC and other exporter registrations should be reviewed accordingly.
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Author Bio
Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
