The Directorate General of Foreign Trade (DGFT) has exempted small exporters from the mandatory Registration-cum-Membership Certificate (RCMC) or Certificate of Registration requirement for export consignments with a free-on-board (FOB) value of up to ₹3 lakh, the Commerce Ministry announced on 16 September 2026. The move, effected through an amendment to Para 2.57 of the Foreign Trade Policy, 2023, is aimed at reducing compliance barriers for new and small exporters operating through postal, courier, e-commerce, and other emerging channels.

What Has Changed

Under the revised rules, exporters shipping consignments valued at or below ₹3 lakh will no longer need to obtain an RCMC or Certificate of Registration from the relevant Export Promotion Council (EPC) or Commodity Board before undertaking exports. Consignments exceeding the ₹3 lakh threshold will continue to require a valid certificate wherever mandated under the Foreign Trade Policy.

Previously, even first-time or occasional exporters handling small shipments had to identify the appropriate registering authority, submit prescribed documents, and complete the registration process — an additional compliance step that could delay or deter entry into international markets.

The Data Behind the Decision

Historical data covering the five-year period from 2021-22 to 2025-26 underpins the policy shift. According to the Commerce Ministry statement, consignments valued at up to $3,000 account for 43% of all shipping bills but represent only 0.86% of India's total merchandise export value. The exemption is, therefore, designed to cover a substantial volume of transactions while having a marginal impact on overall export value.

This data-driven framing signals a deliberate calibration — the government is widening participation in exports without meaningfully altering the revenue composition of the sector.

Who Benefits

The measure is particularly targeted at MSMEs, artisans, small manufacturers, entrepreneurs, and first-time exporters. By removing the upfront RCMC requirement for eligible consignments, these groups gain a simpler entry point into international markets, allowing them to test overseas demand and establish an export track record before committing to formal registration.

The policy is also expected to accelerate low-value exports through e-commerce, postal, and courier channels — segments that have grown rapidly as cross-border direct-to-consumer trade expands globally.

Compliance Pathway as Exporters Scale

The exemption is structured as an on-ramp rather than a permanent bypass. As exporter operations grow and consignment values cross the ₹3 lakh threshold, they will be required to obtain RCMC membership and engage with the relevant Export Promotion Councils or Commodity Boards. At that stage, they can access export promotion activities, market access initiatives, and other institutional support services.

The Commerce Ministry noted that the measure is also expected to broaden the membership base of Export Promotion Councils by encouraging greater MSME participation over time.

Broader Context

This comes amid sustained government efforts to diversify India's exporter base and deepen participation in global value chains. India has been pushing to expand merchandise exports through policy simplification, and the e-commerce export segment — where low-value, high-frequency shipments are the norm — has been a recurring focus. Notably, this is one of the more targeted interventions under the Foreign Trade Policy, 2023, directly addressing the friction that discourages micro and small enterprises from attempting international trade for the first time.

The amendment takes effect immediately, and small exporters across sectors can begin utilising the exemption for eligible consignments without awaiting further procedural steps.