No RCMC needed for export consignments up to ₹3 lakh (FTP 2023 amended)

The RCMC exemption for small exports: what happened?

An RCMC is issued by an Export Promotion Council or Commodity Board. Getting one is an extra step for a small or first-time exporter. Most tiny shipments add little to export value but face the same paperwork.

• DGFT amended Para 2.57 of the Foreign Trade Policy 2023: no Registration-cum-Membership Certificate (RCMC) is needed for consignments with FOB value up to ₹3 lakh [PIB].
• Aim: lower entry barriers for MSMEs and first-time exporters using postal, courier and e-commerce channels [PIB].

Why this threshold?

• Data for 2021-22 to 2025-26 shows small consignments are many in number but small in value.
• Consignments up to USD 3,000 make up 43 per cent of shipping bills but only 0.86 per cent of merchandise export value.
• So the exemption covers many transactions with little effect on export value.
• It also helps exports through post, courier and e-commerce.

What can Prelims ask on the RCMC exemption for small exports?

• RCMC = Registration-cum-Membership Certificate, issued by Export Promotion Councils or Commodity Boards.
• No RCMC needed for consignments up to ₹3 lakh FOB (Para 2.57, FTP 2023).