India is planning to simplify export procedures for shipments worth up to Rs 10,000, a move that could make it easier for small businesses and first-time exporters to reach global markets. The proposal aims to reduce paperwork by removing a key registration requirement for low-value export consignments.

Highlights:

• The proposal removes the RCMC requirement for eligible export shipments worth up to Rs 10,000.
• MSMEs, artisans and ecommerce sellers are expected to benefit from simpler export procedures and lower compliance costs.

The Directorate General of Foreign Trade (DGFT) has proposed exempting export consignments with a free-on-board (FOB) value of up to Rs 10,000 from obtaining a Registration-cum-Membership Certificate (RCMC).

The proposal is part of the government's broader effort to encourage exports through ecommerce platforms and simplify compliance for smaller exporters. It is also expected to make overseas trade more accessible for businesses that regularly send small-value shipments through courier and postal services.

What's Changing?

Under the current rules, exporters generally need an RCMC or a Certificate of Registration to apply for import or export authorisations and claim benefits available under the Foreign Trade Policy (FTP) 2023.

An RCMC is issued by Export Promotion Councils or other authorised organisations and serves as proof that an exporter is registered with the relevant export body.

If the proposed amendment is approved, exporters sending goods worth up to Rs 10,000 will no longer need to obtain an RCMC while applying for authorisations or other benefits under the Foreign Trade Policy.

However, the exemption will not apply to products classified as "restricted" under India's ITC (HS) classification. These items will continue to follow the existing export regulations.

Why Does It Matter?

The proposal could significantly reduce compliance requirements for MSMEs, artisans, startups and ecommerce sellers, many of whom export products in small quantities.

For first-time exporters, obtaining registrations and completing documentation can often become an additional hurdle. By removing this requirement for low-value consignments, the government hopes to make international trade simpler and more cost-effective.

The move also aligns with India's growing focus on ecommerce exports, where products are commonly shipped in smaller parcels through courier companies and postal networks rather than large cargo consignments.

Industry experts believe the proposed relaxation could encourage more small businesses to explore overseas markets while improving ease of doing business for exporters.

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What Happens Next?

The DGFT has issued a trade notice inviting comments from exporters, industry associations and other stakeholders on the proposed amendment to Paragraph 2.57 of the Foreign Trade Policy 2023.

Stakeholders have been given 10 days to submit their feedback before the proposal is finalised.

If implemented, the change is expected to simplify export procedures for thousands of low-value shipments, reduce paperwork for small businesses and strengthen India's push to expand exports through digital and ecommerce channels.