The Directorate General of Foreign Trade has introduced a de minimis exemption from the Registration-cum-Membership Certificate requirement for eligible export consignments with a Free-on-Board value of up to ₹3 lakh. The change amends Para 2.57 of the Foreign Trade Policy, 2023 and is intended to reduce compliance friction for small-value exporters.
New RCMC Rule
| Item | New position |
|---|---|
| FOB threshold | Up to ₹3 lakh |
| Document exempted | RCMC where it would otherwise be required |
| Policy amended | Foreign Trade Policy 2023, Para 2.57 |
| Target users | MSMEs, artisans, first-time and occasional exporters |
The threshold is based on the FOB value of the consignment. The exemption does not abolish RCMC rules across international trade. For consignments above ₹3 lakh, existing RCMC or Certificate of Registration requirements continue wherever applicable.
Why the Exemption Was Introduced
For a small exporter, the administrative burden attached to a low-value shipment can be disproportionate to the value of the transaction. The government’s objective is to create a simpler entry route for businesses testing international demand or making occasional overseas shipments.
The measure is particularly relevant to small manufacturers, artisans, micro-enterprises and exporters using postal, courier and other emerging export channels.
The Data Behind the Decision
The government examined export data covering 2021-22 to 2025-26. During this five-year period, consignments up to US$3,000 accounted for 43% of shipping bills, while contributing only 0.86% of India’s total merchandise export value.
The gap between these two figures explains the policy approach. Small shipments are numerous in documentation terms but represent a very small portion of the total merchandise export value. Simplifying their compliance therefore targets a high-volume administrative category without changing the rules for larger-value trade.
Who Can Benefit?
First-time exporters can test an overseas market with smaller shipments before entering the full membership framework of an Export Promotion Council or Commodity Board.
MSMEs can reduce initial compliance costs when their export orders remain within the ₹3 lakh threshold.
Artisans selling small quantities of traditional products overseas may have a more accessible route for individual or occasional consignments.
E-commerce exporters may also benefit where shipments are routed through postal or courier channels and fall within the stated value limit.
What Has Not Changed?
The exemption is not a blanket waiver of export registrations. If an export consignment exceeds the ₹3 lakh threshold and an RCMC is otherwise required, the existing requirement continues.
The exemption also applies only where the RCMC or Certificate of Registration would otherwise have been required. Other laws, customs requirements, product-specific approvals and applicable export regulations are not removed by this amendment.
Meaning of De Minimis
De minimis is used in policy and regulatory contexts for a small-value threshold below which a specified requirement may be waived. In the new DGFT provision, the threshold is ₹3 lakh in FOB value for eligible consignments covered by the exemption.
Important Exam Facts
- Authority: Directorate General of Foreign Trade
- Policy: Foreign Trade Policy 2023
- Provision amended: Para 2.57
- FOB exemption threshold: ₹3 lakh
- Data period cited: 2021-22 to 2025-26
- Consignments up to US$3,000: 43% of shipping bills
- Share of merchandise export value: 0.86%
- Key beneficiaries: MSMEs, artisans, first-time and occasional exporters
Source: Ministry of Commerce and Industry and DGFT, Government of India.