The Directorate General of Foreign Trade plans to remove the RCMC requirement for export consignments valued up to ₹10,000. This proposal aims to reduce compliance costs for MSMEs and boost e-commerce exports. The government is currently seeking industry feedback on this potential change to the Foreign Trade Policy.
Detailed Coverage
The Directorate General of Foreign Trade (DGFT) has initiated a proposal to simplify export procedures by exempting low-value shipments from the mandatory Registration-cum-Membership Certificate (RCMC) requirement. Under the current framework, exporters must obtain an RCMC from designated export promotion councils to qualify for various government incentives and policy benefits. The proposed amendment specifically targets individual consignments valued at ₹10,000 or less, aiming to ease the administrative burden on smaller players.
Impact on MSMEs and E-commerce
This policy shift is primarily designed to support micro, small, and medium enterprises (MSMEs) and individual artisans who frequently use courier, postal, or e-commerce channels for international trade. For many small-scale sellers, the RCMC process can be a time-consuming barrier that limits their ability to ship products abroad efficiently. By removing this requirement for smaller shipments, the government expects to encourage more first-time exporters to participate in global trade.
It is important for stakeholders to note that this exemption will not apply to items categorized as restricted under the ITC (HS) classification. Even if a shipment falls under the ₹10,000 value threshold, it must still comply with all other existing trade regulations and security checks if the goods are classified as restricted.
Next Steps and Monitoring
The DGFT has opened a 10-day window for industry participants to provide feedback on the proposed amendment. This consultative process is essential for identifying potential implementation challenges, such as how customs authorities will verify the value of these shipments to prevent misuse of the exemption. Investors and business owners involved in logistics, e-commerce, and export-import services should monitor the final notification from the DGFT, as it will clarify the exact operational guidelines for claiming this exemption once the feedback period concludes.