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The government has removed the requirement of Registration-cum-Membership Certificate (RCMC) or Certificate of Registration for export consignments with a Free-on-Board (FOB) value of up to Rs 3 lakh, in a move aimed at reducing compliance hurdles for MSMEs, first-time exporters and small businesses, according to a release by the Ministry of Commerce and Industry.
The Directorate General of Foreign Trade (DGFT) has amended Para 2.57 of the Foreign Trade Policy, 2023, to provide the exemption wherever an RCMC or Certificate of Registration is otherwise required under the policy. Consignments exceeding Rs 3 lakh will continue to require the certificate wherever applicable. The move is expected to cover a large number of small-value export transactions. Government data for 2021-22 to 2025-26 shows consignments of up to USD 3,000 accounted for 43 per cent of shipping bills but only 0.86 per cent of India's total merchandise export value. The ministry said the exemption will provide new and occasional exporters with a simpler route to test overseas markets and build an export track record without having to obtain an RCMC upfront. Currently, exporters are generally required to obtain an RCMC or Certificate of Registration from the relevant Export Promotion Council or Commodity Board, wherever applicable. For small and first-time exporters, the process involves identifying the appropriate registering body, submitting documents and completing registration before undertaking exports. The exemption is also expected to support e-commerce, Postal, Courier and other emerging export channels, which are increasingly enabling businesses to reach international customers through low-value consignments. As exporters expand and their consignments cross the Rs 3 lakh threshold, they can obtain membership of the relevant Export Promotion Councils or Commodity Boards and access export promotion, market access and other institutional support, the ministry said. The measure is particularly aimed at broadening participation in exports by enabling small manufacturers, artisans, entrepreneurs and emerging businesses to enter international markets with lower initial compliance requirements. The ministry further said the existing framework for larger exports remains unchanged, with RCMC or Certificate of Registration continuing to be required for consignments above Rs 3 lakh wherever applicable. The move is expected to help emerging exporters gradually integrate into international markets, while allowing them to obtain formal membership of relevant export bodies as their export operations scale up. (ANI)
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