Govt exempts low-value exports up to ₹3 lakh from registration requirement

The government on Wednesday exempted export consignments with a Free-on-Board (FOB) value of up to ₹3 lakh from the requirement of Registration-cum-Membership Certificate (RCMC) or Certificate of Registration to ease compliance for small and first-time exporters.

The Directorate General of Foreign Trade (DGFT) has amended he Foreign Trade Policy, 2023 to provide the exemption where an RCMC or Certificate of Registration would otherwise be required under the policy.

The requirement will continue to apply to export consignments exceeding ₹3 lakh, wherever applicable.

The exemption is expected to particularly benefit micro, small and medium enterprises (MSMEs), artisans, small businesses and occasional exporters, who can now undertake eligible low-value shipments without obtaining an RCMC upfront.

RCMCs are generally obtained from the relevant Export Promotion Council or Commodity Board. For new or occasional exporters, the process involves identifying the appropriate registering body, submitting documents and completing registration before undertaking exports.

According to the Ministry of Commerce & Industry, data for the five years from 2021-22 to 2025-26 shows that low-value shipments constitute a large share of shipping bills but a small share of the overall value of merchandise exports.

Consignments valued at up to $3,000 accounted for 43% of shipping bills during the period but represented only 0.86% of India's total merchandise export value, it said.

The government said the de minimis exemption would therefore cover a substantial number of small-value export transactions while having a marginal impact on the overall value of exports.

The move is also expected to facilitate exports through postal and courier channels as well as other emerging channels, including e-commerce, which allow smaller businesses to access overseas customers.

The exemption allows emerging exporters to test overseas markets and build an export track record without taking on the RCMC requirement at the initial stage.

“As exporters scale up and undertake higher-value consignments, they can obtain RCMC membership and access the wider range of export promotion and institutional support provided through Export Promotion Councils and other prescribed bodies,” the ministry said.

The government said the measure would also encourage greater participation of MSMEs in exports and broaden the base of Export Promotion Councils and Commodity Boards.