The Directorate General of Foreign Trade (DGFT) has suggested exempting export shipments valued up to Rs 10,000 from needing a Registration-cum-Membership Certificate (RCMC). This move aims to support small exporters, including MSMEs, artisans, and e-commerce sellers using postal or courier services. These exempted exporters can now apply for import/export authorizations and claim Foreign Trade Policy (FTP) benefits without an RCMC.
The exemption, however, excludes items categorized as “Restricted” under the ITC (HS) classification. In a recent trade notice, the DGFT has sought feedback from exporters, industry bodies, and stakeholders on the proposed change to the Foreign Trade Policy (FTP) 2023. Interested parties have ten days to provide their comments before the amendment is finalized.
Presently, exporters typically require an RCMC or a Registration Certificate to access import/export authorizations and FTP benefits. The proposed amendment would waive the RCMC requirement for export consignments with a free-on-board (FOB) value of up to Rs 10,000. This initiative is aimed at easing compliance for low-value export shipments, particularly those utilizing postal and courier services.
The DGFT’s objective with this proposal is to introduce a ‘de minimis’ exemption for small exporters, thereby reducing regulatory burdens on individuals and small businesses involved in exports. This regulatory relief is designed to help exporters navigate global market uncertainties amidst challenging geopolitical scenarios. Additionally, it is expected to enhance opportunities for small exporters following recent free trade agreement finalizations with various countries.
