RCMC Exemption up to ₹3 Lakh of Shipment : What Every New Exporter in India Should Know
Starting an export business often means dealing with several registrations and compliance requirements before the first shipment. For many products, exporters are required to obtain a Registration-cum-Membership Certificate (RCMC) from the relevant Export Promotion Council or Commodity Board.
To make small-value exports easier, the Directorate General of Foreign Trade (DGFT) has introduced an important relaxation.
Under DGFT Notification No. 36/2026-27 dated 15 September 2026, an RCMC or Certificate of Registration is not required for an export consignment having FOB value up to ₹3 lakh, where such certificate would otherwise be required under the Foreign Trade Policy (FTP).
This is particularly relevant for first-time exporters, MSMEs, artisans and small businesses testing international markets.
What is the ₹3 Lakh RCMC Exemption?
The rule is simple:
| FOB value of export consignment | RCMC requirement |
| Up to ₹3 lakh | RCMC/Certificate of Registration not required, where otherwise applicable |
| Above ₹3 lakh | RCMC/Certificate of Registration continues to apply, wherever required |
Important: The threshold refers to the FOB value of the export consignment, not the exporter’s annual turnover.
The exemption is also not an abolition of RCMC. It is a relaxation for eligible low-value consignments.
Why Has DGFT Introduced This Relaxation?
The Government’s objective is to reduce the initial compliance burden and lower the entry barrier for small and new exporters.
According to the Government, during 2021-22 to 2025-26, consignments up to US$3,000 accounted for around 43% of shipping bills but only 0.86% of India’s merchandise export value. This indicates a very large number of small-value export transactions.
The relaxation is intended to:
- Reduce upfront compliance for small exporters
- Help first-time exporters test overseas markets
- Encourage MSMEs and artisans to start exporting
- Facilitate exports through postal and courier channels
- Help emerging exporters build an export track record
- Gradually bring successful small exporters into Export Promotion Councils and Commodity Boards as their business grows.
Does the ₹3 Lakh Exemption Apply to APEDA, Spices Board, Tea Board and MPEDA, etc. where RCMC is mandatory?
The DGFT provision is framed broadly as an exemption from the RCMC or Certificate of Registration requirement under FTP, wherever such certificate is otherwise required. The Government’s explanation refers to RCMC requirements from the relevant Export Promotion Councils or Commodity Boards.
Therefore, for a qualifying consignment of ₹3 lakh FOB or below, the new exemption can cover the applicable RCMC/Certificate of Registration requirement under FTP.
The RCMC/Certificate of Registration requirement is exempted for the qualifying low-value consignment. Other statutory or product-specific requirements may continue to apply.
What the New Exporter Still Needs to Understand
The ₹3 lakh relaxation is not an exemption from all export compliance.
Depending on the product and transaction, an exporter may still need:
- IEC
- Customs documentation and applicable ICEGATE processes
- GST compliance
- Product-specific certificates or approvals
- Phytosanitary/health certificates, where applicable
- Quality or inspection certificates, where applicable
- Destination-country import requirements
- Labelling and packaging requirements
- Restricted/prohibited goods permissions, where applicable
Therefore:
RCMC exemption ≠ Export-compliance exemption
It simply removes one important compliance requirement for qualifying low-value consignments.
A Simple Example for a New Exporter
Here is an example with different industries:
Imagine a first-time merchant exporter, his first three shipments are:
| Shipment | FOB value | RCMC under ₹3 lakh relaxation |
|---|---|---|
| Spices | ₹1.50 lakh | Exempt, where otherwise applicable |
| Coffee | ₹2.40 lakh | Exempt, where otherwise applicable |
| Leather products | ₹2.90 lakh | Exempt, where otherwise applicable |
| Fourth shipment | ₹4.00 lakh | Normal RCMC requirement applies, where applicable |
This allows a new exporter to test international markets with smaller consignments before moving into larger export transactions.
What Are the Benefits for New Exporters?
1. Lower entry barrier
A first-time exporter can begin with qualifying small consignments without first completing the RCMC requirement.
2. Lower initial compliance cost
The exporter can avoid the immediate cost and administrative effort associated with obtaining RCMC for an eligible shipment.
3. Easier market testing
Small businesses can test a new product, buyer or country with a relatively small shipment.
4. Helpful for MSMEs
Small manufacturers and artisans can enter international markets more easily.
5. Supports e-commerce exports
The Government specifically expects the measure to facilitate low-value exports through postal, courier and emerging export channels.
One Point Every Exporter Must Remember
The ₹3 lakh limit is based on the FOB value of the export consignment.
Therefore:
₹2.99 lakh FOB → within the exemption
₹3 lakh FOB → within the exemption
₹3.01 lakh FOB → above the threshold; normal RCMC requirement applies wherever applicable
Do not confuse the ₹3 lakh limit with annual turnover or total exports during the year.
Conclusion
The ₹3 lakh RCMC exemption is an important facilitation measure for India’s new and small exporters. It allows eligible low-value export consignments to move forward without the RCMC/Certificate of Registration requirement that would otherwise apply under the FTP.
For a beginner, this means less paperwork at the entry stage, easier market testing and a lower barrier to starting exports.
However, exporters must remember that RCMC exemption does not remove other product-specific, customs, GST or destination-country requirements.
Start small, understand the rules, test the market—and scale your exports as your business grows.
FAQs
1. Is RCMC abolished for exporters?
No. The exemption applies to qualifying export consignments with FOB value up to ₹3 lakh. For consignments above ₹3 lakh, the existing RCMC/Certificate of Registration requirement continues wherever applicable.
2. Is the ₹3 lakh limit based on annual exports?
No. It is based on the FOB value of the export consignment.
3. Does this exemption apply to products covered by Commodity Boards?
The DGFT provision covers the RCMC/Certificate of Registration requirement under FTP, including requirements involving relevant Export Promotion Councils or Commodity Boards.
4. Does an exporter still need IEC?
Yes. The RCMC relaxation does not itself remove other applicable export requirements.
5. Does ₹3 lakh exemption mean that no certificate is required for the product?
No. It only provides the specified RCMC/Certificate of Registration exemption. Other product-specific and destination-country requirements may still apply.
6. What happens if my FOB value is ₹3.50 lakh?
The ₹3 lakh exemption does not apply. The exporter must follow the normal RCMC/Certificate of Registration requirement wherever applicable.
7. What is the official DGFT notification?
DGFT Notification No. 36/2026-27 dated 15 September 2026, which amended Para 2.57 of the Foreign Trade Policy 2023. The Government announced the measure through PIB on 16 September 2026.
Applicable from 16th September 2026.