{"id":2606,"date":"2026-10-02T12:48:08","date_gmt":"2026-10-02T12:48:08","guid":{"rendered":"https:\/\/www.iiiem.in\/blog\/?p=2606"},"modified":"2026-10-02T12:49:51","modified_gmt":"2026-10-02T12:49:51","slug":"rcmc-exemption-up-to-%e2%82%b93-lakh-of-shipment-what-every-new-exporter-in-india-should-know","status":"publish","type":"post","link":"https:\/\/www.iiiem.in\/blog\/rcmc-exemption-up-to-%e2%82%b93-lakh-of-shipment-what-every-new-exporter-in-india-should-know\/","title":{"rendered":"RCMC Exemption up to \u20b93 Lakh of Shipment : What Every New Exporter in India Should Know"},"content":{"rendered":"RCMC Exemption up to \u20b93 Lakh of Shipment : What Every New Exporter in India Should Know<\/h2>\n
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)<\/strong> from the relevant Export Promotion Council or Commodity Board.<\/p>\nTo make small-value exports easier, the Directorate General of Foreign Trade (DGFT)<\/strong> has introduced an important relaxation.<\/p>\nUnder DGFT Notification No. 36\/2026-27 dated 15 September 2026<\/strong>, an RCMC or Certificate of Registration is not required for an export consignment having FOB value up to \u20b93 lakh<\/strong>, where such certificate would otherwise be required under the Foreign Trade Policy (FTP).<\/p>\nThis is particularly relevant for first-time exporters, MSMEs, artisans and small businesses<\/strong> testing international markets.<\/p>\nWhat is the \u20b93 Lakh RCMC Exemption?<\/strong><\/h3>\nThe rule is simple:<\/p>\n
\n\n\nFOB value of export consignment<\/strong><\/td>\nRCMC requirement<\/strong><\/td>\n<\/tr>\n<\/thead>\n\n\nUp to \u20b93 lakh<\/strong><\/td>\nRCMC\/Certificate of Registration not required<\/strong>, where otherwise applicable<\/td>\n<\/tr>\n\nAbove \u20b93 lakh<\/strong><\/td>\n| RCMC\/Certificate of Registration continues to apply<\/strong>, wherever required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Important:<\/strong> The threshold refers to the FOB value of the export consignment<\/strong>, not the exporter’s annual turnover.<\/p>\nThe exemption is also not an abolition of RCMC<\/strong>. It is a relaxation for eligible low-value consignments.<\/p>\nWhy Has DGFT Introduced This Relaxation?<\/strong><\/h3>\nThe Government’s objective is to reduce the initial compliance burden and lower the entry barrier for small and new exporters<\/strong>.<\/p>\nAccording to the Government, during 2021-22 to 2025-26<\/strong>, consignments up to US$3,000 accounted for around 43% of shipping bills but only 0.86% of India’s merchandise export value<\/strong>. This indicates a very large number of small-value export transactions.<\/p>\nThe relaxation is intended to:<\/p>\n \n- Reduce upfront compliance for small exporters<\/li>\n
- Help first-time exporters test overseas markets<\/li>\n
- Encourage MSMEs and artisans to start exporting<\/li>\n
- Facilitate exports through postal and courier channels<\/strong><\/li>\n
- Help emerging exporters build an export track record<\/li>\n
- Gradually bring successful small exporters into Export Promotion Councils and Commodity Boards as their business grows.<\/li>\n<\/ul>\n
Does the \u20b93 Lakh Exemption Apply to APEDA, Spices Board, Tea Board and MPEDA, etc. where RCMC is mandatory?<\/strong><\/p>\nThe DGFT provision is framed broadly as an exemption from the RCMC or Certificate of Registration requirement under FTP, wherever such certificate is otherwise required.<\/strong> The Government’s explanation refers to RCMC requirements from the relevant Export Promotion Councils or Commodity Boards<\/strong>.<\/p>\nTherefore, for a qualifying consignment of \u20b93 lakh FOB or below<\/strong>, the new exemption can cover the applicable RCMC\/Certificate of Registration requirement<\/strong> under FTP.<\/p>\nThe RCMC\/Certificate of Registration requirement is exempted for the qualifying low-value consignment. Other statutory or product-specific requirements may continue to apply.<\/strong><\/p>\nWhat the New Exporter Still Needs to Understand<\/strong><\/h3>\nThe \u20b93 lakh relaxation is not an exemption from all export compliance<\/strong>.<\/p>\nDepending on the product and transaction, an exporter may still need:<\/p>\n \n- IEC<\/strong><\/li>\n
- Customs documentation and applicable ICEGATE processes<\/li>\n
- GST compliance<\/li>\n
- Product-specific certificates or approvals<\/li>\n
- Phytosanitary\/health certificates, where applicable<\/li>\n
- Quality or inspection certificates, where applicable<\/li>\n
- Destination-country import requirements<\/li>\n
- Labelling and packaging requirements<\/li>\n
- Restricted\/prohibited goods permissions, where applicable<\/li>\n<\/ul>\n
Therefore:<\/p>\n RCMC exemption \u2260 Export-compliance exemption<\/strong><\/p>\nIt simply removes one important compliance requirement for qualifying low-value consignments.<\/p>\n A Simple Example for a New Exporter<\/strong><\/p>\nHere is an example with different industries:<\/p>\n Imagine a first-time merchant exporter, his first three shipments are:<\/p>\n \n \n \n\n\n| Shipment<\/th>\n | FOB value<\/th>\n | RCMC under \u20b93 lakh relaxation<\/th>\n<\/tr>\n<\/thead>\n | \n\n| Spices<\/td>\n | \u20b91.50 lakh<\/td>\n | Exempt, where otherwise applicable<\/td>\n<\/tr>\n | \n| Coffee<\/td>\n | \u20b92.40 lakh<\/td>\n | Exempt, where otherwise applicable<\/td>\n<\/tr>\n | \n| Leather products<\/td>\n | \u20b92.90 lakh<\/td>\n | Exempt, where otherwise applicable<\/td>\n<\/tr>\n | \n| Fourth shipment<\/td>\n | \u20b94.00 lakh<\/td>\n | Normal RCMC requirement applies, where applicable<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n This allows a new exporter to test international markets with smaller consignments<\/strong> before moving into larger export transactions.<\/p>\nWhat Are the Benefits for New Exporters?<\/h3>\n1. Lower entry barrier<\/strong><\/span><\/h3>\nA first-time exporter can begin with qualifying small consignments without first completing the RCMC requirement.<\/p>\n 2. Lower initial compliance cost<\/strong><\/span><\/h3>\nThe exporter can avoid the immediate cost and administrative effort associated with obtaining RCMC for an eligible shipment.<\/p>\n 3. Easier market testing<\/strong><\/span><\/h3>\nSmall businesses can test a new product, buyer or country with a relatively small shipment.<\/p>\n 4. Helpful for MSMEs<\/strong><\/span><\/h3>\nSmall manufacturers and artisans can enter international markets more easily.<\/p>\n | | | | | | |