DGFT Plans To Ease Export Rules For Small Shipments Up to Rs 10,000 With RCMC Relief

New Delhi, Jul 21 (KNN) The Directorate General of Foreign Trade (DGFT) has proposed exempting export consignments valued up to Rs 10,000 from the requirement of obtaining a Registration-cum-Membership Certificate (RCMC), in a move aimed at encouraging small-value exports and easing compliance.

In a trade notice issued on July 20, the DGFT invited comments from exporters, industry bodies and other stakeholders within 10 days on the proposed amendment to the Foreign Trade Policy 2023.

The proposal introduces a ‘de minimis’ exemption for shipments with a free-on-board (FOB) value of up to Rs 10,000, particularly targeting exports through postal, courier and emerging e-commerce channels.

Relief for Small Exporters

The move is expected to benefit micro, small and medium enterprises (MSMEs), artisans and first-time exporters by reducing procedural requirements. 

Currently, exporters must obtain an RCMC—issued by Export Promotion Councils or authorised bodies—to access authorisations and benefits under the policy.

By removing this requirement for low-value consignments, the government aims to simplify export processes and promote participation in global trade, especially through online platforms.

Industry Welcomes Move, Flags Limitations

Exporters and trade experts have largely welcomed the proposal as a step towards reducing compliance costs. Industry estimates suggest that RCMC-related expenses, including membership and registration fees, can be significant for small exporters.

However, some stakeholders argue that the Rs 10,000 threshold may be too low to create a meaningful impact, as many shipments of this value do not typically utilise policy benefits.

Concerns Over Scope and Safeguards

Experts have also raised concerns about the absence of a cap on the number of consignments eligible under the exemption. They caution that without such limits, there could be potential misuse or increased scrutiny from authorities.

Additionally, the proposed relaxation will not apply to items classified as ‘restricted’ under India’s ITC (HS) framework.

The DGFT said the proposal is aimed at reducing regulatory burden and facilitating small-scale exporters. The final decision will be taken after reviewing stakeholder feedback received during the consultation period.

(KNN Bureau)