DGFT Proposes RCMC Exemption For Low-Value Exports To Ease MSME Compliance

New Delhi, Jul 22 (KNN) The Directorate General of Foreign Trade (DGFT) has proposed exempting low-value export consignments from the requirement of obtaining a Registration-cum-Membership Certificate (RCMC), a move aimed at simplifying export procedures for MSMEs, artisans, start-ups and first-time exporters.

In a Trade Notice issued on July 20, the DGFT invited comments from exporters, industry associations and other stakeholders on a proposed amendment to Paragraph 2.57 of the Foreign Trade Policy (FTP) 2023. Stakeholders have been given 10 days to submit their feedback.

RCMC Exemption Proposed For Exports Up To Rs 10,000

Under the proposed amendment, exporters shipping goods with a Free on Board (FOB) value of up to Rs 10,000 will not be required to obtain an RCMC or Certificate of Registration while applying for import or export authorisations under the FTP or while availing benefits and concessions under the policy.

The exemption, however, will not apply to goods classified as ‘Restricted’ under the ITC (HS).

At present, exporters are generally required to obtain an RCMC from Export Promotion Councils (EPCs) or other designated authorities to access various authorisations, incentives and benefits under the Foreign Trade Policy.

Move Aims To Promote Small-Value Exports

According to the DGFT, the proposed amendment seeks to introduce a ‘de minimis’ exemption for low-value export consignments, particularly those shipped through postal services, courier operators and other emerging export channels, including e-commerce.

The proposal is intended to reduce procedural compliance, lower entry barriers for small exporters and encourage greater participation in cross-border e-commerce.

Consultation Underway Before Final Notification

The DGFT said the proposal has been prepared under the stakeholder consultation provisions of the Foreign Trade Policy, and feedback received during the consultation period will be considered before the amendment is finalised.

The proposed relaxation is expected to reduce compliance costs, improve ease of doing business for small exporters and support the expansion of India's e-commerce export ecosystem by facilitating quicker access to international markets.

(KNN Bureau)