India’s ₹3 lakh export exemption: which paperwork goes away?

A small manufacturer can find a buyer abroad and still face paperwork before the first order leaves India. One of those documents is an RCMC, short for Registration-cum-Membership Certificate, issued by an export promotion council or another recognised body. Where the Foreign Trade Policy requires it, the exporter must obtain the certificate to access the relevant authorisation, benefit or concession.

India has now removed that requirement for qualifying small consignments. A DGFT notification dated 15 September 2026, published in the Gazette on 16 September, adds an exemption for an export consignment whose free-on-board value does not exceed ₹3 lakh. The change has immediate effect. It gives a business testing an overseas market one fewer registration step for an eligible shipment.

What the certificate was for

Export promotion councils support particular groups of products or services. An exporter applies to the appropriate council or registering body, provides the required documents and receives a certificate confirming registration or membership.

The pre-existing rule in paragraph 2.57 of the Foreign Trade Policy ties RCMC to applications for specified import or export authorisations, and for benefits or concessions under the policy, unless an exemption applies. An exporter therefore needs to check whether the authorisation or benefit they are applying for requires RCMC. Under that rule, the certificate was not a universal shipping permit for every parcel.

For a first-time exporter who does need it, registration adds work before they can obtain the relevant authorisation or benefit. A business with regular overseas orders can spread that effort across many sales. Someone trying a small first order has to complete it before knowing whether the customer will come back.

The ₹3 lakh test applies to the consignment

The amendment inserts a new paragraph 2.57(c), overriding the certificate requirement in the preceding two subparagraphs for consignments within the threshold. Exactly ₹3 lakh qualifies; a value above it does not. Above the threshold, the earlier requirement continues wherever it otherwise applies.

The unit being tested is the export consignment, not the firm's annual turnover or the value of one item inside the package. A consignment can contain several products. The notification does not create an annual ₹3 lakh allowance that a business uses up over successive shipments.

The value is measured on a free-on-board, or FOB, basis. This is the export value before the international freight and insurance used to carry the goods onward. A delivered price quoted to an overseas buyer can include those additional costs, so the two figures should not be treated as interchangeable.

Suppose a small textile business has a consignment with an FOB value of ₹2.4 lakh and would otherwise need an RCMC under paragraph 2.57. That consignment qualifies for the exemption. If a later consignment has an FOB value of ₹3.4 lakh, it falls outside the exemption and the business must meet the certificate requirement where applicable. The business checks each consignment separately.

What still has to happen before shipping

An Importer-Exporter Code, or IEC, identifies the business to the trade authorities. It serves a different purpose from council membership. Paragraph 2.05 of the Foreign Trade Policy requires an IEC for goods exports unless a separate exemption applies; the new RCMC provision does not remove it.

The goods also need their export documents. Paragraph 2.06 lists a commercial invoice and packing list, the relevant transport document, and a shipping bill, bill of export or postal bill of export. These tell the authorities what is being sent, its value and how it is travelling. Product-specific restrictions and additional documents can also apply.

The route affects the filing process. DGFT's e-commerce exports handbook describes postal and courier procedures, including the courier shipping bill filed through the Express Cargo Clearance System. A small seller still needs to coordinate with the postal or courier operator and provide the information needed for that route.

For the textile business, the exemption removes the council-registration requirement for the qualifying order. It must still identify itself to the authorities, declare its shipment and meet the relevant product rules. The exemption does not itself grant a tax refund or make the goods acceptable in the destination market.

Why reduce paperwork for small orders?

The commerce ministry's 16 September explanation identifies micro, small and medium enterprises (MSMEs), artisans and first-time exporters as intended beneficiaries. Postal, courier and e-commerce channels let these businesses reach overseas customers through relatively small orders.

The ministry illustrates the number of transactions involved using data for 2021–22 to 2025–26: consignments up to US$3,000 accounted for 43% of shipping bills but 0.86% of merchandise export value. That dollar band is the ministry's statistical example, distinct from the new ₹3 lakh legal threshold. The figures show that small consignments account for a large share of declarations even though they contribute little to total export earnings.

The government's aim is to make those early transactions easier, allowing businesses to test demand and build experience. Whether that leads to more sustained exporting will depend on buyers returning, delivery costs, product quality and payment reliability as well as paperwork. The notification establishes the exemption; its effect on repeat orders will take longer to observe.