DGFT proposes RCMC exemption for exports up to ₹10,000 to aid small exporters
Synopsis
India's DGFT wants to scrap the RCMC requirement for export shipments worth up to ₹10,000 — a small number that could unlock a large shift for MSMEs, artisans and e-commerce sellers navigating postal and courier export channels. With new FTAs in place and global markets volatile, the timing signals a deliberate push to widen the exporter base at the bottom of the pyramid.
Key Takeaways
The DGFT has proposed exempting export consignments with a FOB value up to ₹10,000 from the mandatory RCMC requirement.
The amendment targets Paragraph 2.57 of the Foreign Trade Policy (FTP) 2023 .
Primary beneficiaries include MSMEs , artisans, and e-commerce sellers exporting via post or courier.
The exemption does not apply to goods classified as 'Restricted' under the ITC (HS) schedule.
Stakeholders have 10 days from the 20 July trade notice to submit feedback before the proposal is finalised.
The move is linked to India's new free trade agreements and the broader ease-of-doing-business agenda.
The Directorate General of Foreign Trade (DGFT) has proposed exempting export consignments valued at up to ₹10,000 from the mandatory Registration-cum-Membership Certificate (RCMC) requirement, in a move designed to reduce compliance burdens on small exporters, artisans, and e-commerce sellers. The proposal, outlined in a trade notice issued on 20 July, invites stakeholder feedback within 10 days before the amendment is finalised.
What the Proposal Covers
Under the suggested amendment to Paragraph 2.57 of the Foreign Trade Policy (FTP) 2023, exporters shipping goods with a free-on-board (FOB) value of up to ₹10,000 would no longer need an RCMC or Certificate of Registration to apply for import or export authorisations, or to claim benefits under the FTP. The DGFT describes this as a 'de minimis' exemption targeting low-value shipments dispatched through post offices, courier services, and other emerging export channels.
However, the exemption does not extend to items classified as 'Restricted' under the ITC (HS) classification schedule, ensuring that regulated or sensitive goods remain subject to full compliance requirements.
Who Stands to Benefit
The primary beneficiaries are expected to be micro, small and medium enterprises (MSMEs), individual artisans, and e-commerce sellers who export goods through postal or courier channels. Currently, all exporters seeking FTP benefits or authorisations must hold an RCMC — a certificate issued by Export Promotion Councils or other authorised bodies confirming registration with the relevant export organisation. For small operators handling low-value shipments, this requirement has long been cited as a disproportionate compliance hurdle.
Context: Geopolitical Headwinds and New Trade Agreements
The proposal arrives against a backdrop of rising uncertainty in global markets driven by geopolitical tensions. Notably, it also follows the recent finalisation of several new free trade agreements (FTAs) by India, which have opened fresh export opportunities. Easing entry-level compliance is seen as a way to help smaller exporters capitalise on these openings without being held back by paperwork designed for larger trade volumes.
This is consistent with the Centre's broader push on ease of doing business, which has progressively sought to reduce regulatory friction for MSMEs and individual entrepreneurs engaged in cross-border commerce.
Next Steps
Exporters, industry associations, and other stakeholders have been invited to submit their comments within 10 days of the 20 July trade notice. Once the consultation period closes, the DGFT will review feedback before formally amending the FTP. Industry bodies are expected to broadly welcome the move, though some may seek clarity on the FOB valuation methodology and its interaction with existing FTP benefit structures.
Point of View
000 FOB threshold is modest — at current exchange rates, it covers only the smallest of shipments — but the signal matters more than the number. India's exporter base remains heavily concentrated among large and mid-size firms; the long tail of artisans and e-commerce micro-sellers has been structurally locked out by compliance requirements calibrated for higher-volume trade. The RCMC exemption, if finalised, is a recognition of that asymmetry. The real test will be whether the 10-day consultation period is substantive or ceremonial, and whether the threshold is revised upward based on industry input — a ₹10,000 ceiling may already be too low to meaningfully cover even a modest handicraft shipment.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the RCMC exemption proposed by DGFT for small exporters?
The DGFT has proposed that exporters shipping goods with a free-on-board (FOB) value of up to ₹10,000 will no longer need a Registration-cum-Membership Certificate (RCMC) to apply for authorisations or claim Foreign Trade Policy benefits. The exemption is aimed at MSMEs, artisans, and e-commerce sellers using postal or courier channels.
Which exporters will benefit from the proposed RCMC exemption?
The primary beneficiaries are micro, small and medium enterprises (MSMEs), individual artisans, and e-commerce sellers who export low-value goods through post offices and courier services. Larger exporters or those dealing in restricted goods under the ITC (HS) classification are not covered.
Are there any goods excluded from the proposed exemption?
Yes. The exemption does not apply to items listed as 'Restricted' under the ITC (HS) classification schedule. Such goods will continue to require full RCMC compliance regardless of shipment value.
What is the current RCMC requirement and why is it being reviewed?
Currently, all exporters must hold an RCMC — issued by Export Promotion Councils or authorised bodies — to apply for import or export authorisations and access FTP benefits. The DGFT is reviewing this requirement because it imposes a disproportionate compliance burden on small operators handling low-value shipments.
When will the proposed DGFT amendment take effect?
The DGFT issued a trade notice on 20 July inviting stakeholder comments within 10 days. The amendment to Paragraph 2.57 of FTP 2023 will be finalised after the consultation period closes; no specific implementation date has been announced yet.
