Updated: 17 September 2026
For a small business trying to enter international markets, even a relatively small compliance requirement can become a real hurdle when an export order needs to be shipped quickly.
That is why the government’s latest change to the RCMC requirement for small-value exports is important for MSMEs, first-time exporters, artisans and small businesses.
The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy, 2023 to provide an exemption from the requirement of a Registration-cum-Membership Certificate (RCMC) or Certificate of Registration for export consignments with a Free-on-Board (FOB) value of up to ₹3 lakh, wherever such certificate would otherwise be required under the Foreign Trade Policy. The amendment took effect immediately.
For a small exporter, this can remove one important hurdle at the beginning of an export journey.
DGFT has amended Paragraph 2.57 of the Foreign Trade Policy, 2023.
The new provision says that an RCMC or Certificate of Registration is not required for an export consignment where the FOB value does not exceed ₹3,00,000.
For consignments above ₹3 lakh, the existing RCMC or Certificate of Registration requirement continues wherever it is otherwise applicable under the Foreign Trade Policy.
| Export consignment FOB value | RCMC requirement |
|---|---|
| Up to ₹3 lakh | Exempt where RCMC would otherwise be required |
| Above ₹3 lakh | Existing requirement continues where applicable |
The ₹3 lakh limit is based on the FOB value of the individual export consignment, not simply your annual export turnover.
This change may look small on paper.
But anyone who has actually tried to start exporting on a small scale knows that timing and paperwork matter.
When a buyer gives you an export order and expects shipment quickly, having to complete another registration before you can proceed can create an additional delay.
I know this from my own experience.
When I was exporting tea as a small exporter, there were occasions when I wanted to explore exporting spices as well.
The problem was that my existing registration did not simply cover everything I wanted to export.
If I wanted to move into another product category, I had to go through the process of applying for the relevant RCMC again.
From my experience, the process could take around 6–10 days.
For a large established exporter, a few days of additional compliance may not seem like a major issue.
But for a small exporter who has just received an order and wants to ship immediately, those days can become a genuine hurdle.
You may have the buyer.
You may have the product.
You may have the money and logistics ready.
But if one registration is still pending, the shipment may have to wait.
That is why I see the new ₹3 lakh exemption as more than just a paperwork change.
For a small exporter trying to test a new overseas market, it can remove one of the initial barriers between receiving a small export order and actually shipping it.
This is my personal experience as an exporter and is not a statement that every exporter previously experienced the same processing time.
RCMC stands for Registration-cum-Membership Certificate.
It is generally issued by the relevant Export Promotion Council, Commodity Board or other prescribed organisation, depending on the exporter’s product and applicable rules.
Where required, it can be part of the exporter’s compliance and registration framework.
The new DGFT provision does not abolish RCMC.
Instead, it creates a de minimis exemption for low-value export consignments up to ₹3 lakh FOB.
The measure is particularly relevant to:
The government specifically says the measure is intended to facilitate small-value exports through Postal, Courier and other emerging channels.
Suppose a small Indian business receives an overseas order.
The export consignment has an FOB value of ₹1.5 lakh.
If RCMC would otherwise have been required under the FTP, the new exemption means the exporter does not need that RCMC for the eligible consignment.
The consignment has an FOB value of exactly ₹3 lakh.
It falls within the exemption threshold.
The consignment exceeds ₹3 lakh.
The new exemption does not apply, and the exporter needs to follow the existing RCMC/Certificate of Registration requirement wherever applicable.
No.
This is an important distinction.
The government has not removed RCMC requirements across the board.
The exemption applies to an eligible export consignment with a FOB value up to ₹3 lakh, where RCMC or a Certificate of Registration would otherwise be required under the Foreign Trade Policy.
Other export requirements can still apply.
For example:
So don’t interpret the new rule as:
“Exports below ₹3 lakh need no compliance.”
That would be incorrect.
The more accurate interpretation is:
“The RCMC/Certificate of Registration requirement is exempted for eligible export consignments up to ₹3 lakh FOB.”
There is an interesting reason behind the change.
Government data for 2021-22 to 2025-26 showed that export consignments valued up to US$3,000 accounted for about 43% of shipping bills, while representing only around 0.86% of India’s total merchandise export value.
In other words, small-value shipments represent a significant number of export transactions but a very small share of total export value.
The government therefore wants to reduce the compliance burden associated with these smaller shipments and make it easier for new exporters to enter international markets.
For a first-time exporter, international trade can already involve learning:
Removing one registration hurdle for small consignments can make the starting process simpler.
It may also allow a business to test an overseas market with a smaller shipment before committing to larger exports.
That is particularly relevant for MSMEs that are still learning how international buyers, logistics and payments work.
This change is especially relevant to the growing number of businesses selling internationally through:
A traditional bulk export may involve a large shipment.
But an online business could receive many smaller international orders.
The government specifically identified e-commerce, postal, courier and other emerging channels as areas that can benefit from the relaxation.
The exemption is designed for small-value consignments.
Once your consignments exceed ₹3 lakh, the existing RCMC/Certificate of Registration framework continues wherever applicable.
As the export business grows, exporters can obtain membership of the relevant Export Promotion Council or Commodity Board and access the wider export-promotion and institutional support available through these organisations.
So the new rule does not eliminate the importance of RCMC.
It simply gives small exporters more room to start small.
Even when the RCMC requirement does not apply, don’t forget the rest of your export preparation.
Before shipping, check:
☐ IEC is available and valid
☐ Product HS code has been identified
☐ Product is freely exportable or required permission has been obtained
☐ FOB value of the individual consignment has been calculated
☐ RCMC exemption has been checked
☐ Commercial/proforma invoice is prepared
☐ Packing list is prepared
☐ Shipping and customs documentation is ready
☐ GST/export procedure has been checked
☐ Buyer and destination-country requirements have been verified
☐ Product-specific certification requirements have been checked
☐ Payment terms are clear
☐ Freight and insurance costs have been considered
The new rule can be reduced to four simple points:
The threshold refers to the FOB value of the export consignment.
Eligible consignments up to ₹3 lakh are exempt from RCMC/Certificate of Registration where that certificate would otherwise be required under the FTP.
Existing RCMC/registration requirements continue wherever applicable.
The exemption does not remove other export, customs, tax, product or destination-country requirements.
For someone who has never exported, registration and compliance requirements can sometimes look like small formalities.
But when you are operating a small business, every additional day and every additional procedural hurdle matters.
My own experience of exporting tea and later wanting to explore spices showed me this very clearly.
If you have a buyer waiting and you are ready to ship, having to wait several days for another registration can be frustrating.
A large exporter may have a dedicated export team handling such processes.
A small entrepreneur may be doing everything alone — finding the buyer, arranging the product, negotiating the price, preparing documents, coordinating logistics and managing payment.
For such exporters, simplifying the first small shipment can make a meaningful difference.
The new ₹3 lakh RCMC exemption therefore has the potential to make the first step into exporting a little easier for India’s small businesses.
The government has introduced a ₹3 lakh FOB exemption from the RCMC/Certificate of Registration requirement for eligible export consignments where the certificate would otherwise be required under the Foreign Trade Policy. The change took effect immediately following DGFT’s amendment to Paragraph 2.57.
For a small exporter, this could mean one less registration hurdle when testing an overseas market with a small shipment.
But remember:
RCMC exemption does not mean compliance exemption.
Before exporting, always check the latest DGFT rules, customs requirements, product-specific regulations and destination-country requirements.
Planning your first or next export?
Use these practical BusinessZindagi resources:
The government has exempted eligible export consignments with an FOB value up to ₹3 lakh from the requirement to obtain an RCMC or Certificate of Registration where that certificate would otherwise be required under the Foreign Trade Policy.
Yes. The DGFT amendment specifically refers to the Free-on-Board (FOB) value of the export consignment.
If RCMC or Certificate of Registration would otherwise have been required under the FTP, the new exemption means that eligible ₹2 lakh FOB consignments do not require it.
The ₹3 lakh exemption does not apply. The existing RCMC/Certificate of Registration requirement continues wherever applicable.
No. The new provision concerns RCMC/Certificate of Registration. Other applicable export requirements, including IEC and customs procedures, continue.
The government specifically says the measure is intended to facilitate exports through Postal, Courier and other emerging channels, which includes the growing small-value e-commerce export ecosystem.
No. Product-specific restrictions, licences, authorisations and other regulatory requirements may still apply.
No. The exemption applies to eligible consignments up to ₹3 lakh FOB. The existing framework continues for consignments above ₹3 lakh wherever RCMC is otherwise required.
DGFT issued Notification No. 36/2026-27 dated 15 September 2026, amending Paragraph 2.57 of the Foreign Trade Policy, 2023, with immediate effect.
Check the latest DGFT notification and Foreign Trade Policy, along with applicable customs, product-specific and destination-country requirements.
AI Disclaimer: This article was prepared with AI assistance and checked against available official government information. Rules and procedures can change, so exporters should verify the latest DGFT notification before acting.
Editorial Disclaimer: BusinessZindagi provides educational information and does not provide legal, tax, customs or professional export advice. The personal export experience shared in this article reflects the author’s own experience and should not be treated as a statement about every exporter’s circumstances.
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