- Why in news
- On 16 September 2026, the Commerce Ministry announced that DGFT has exempted export consignments up to ₹3 lakh FOB value from the RCMC or Certificate of Registration requirement.
- What it is
- The Registration-cum-Membership Certificate (RCMC) is issued by an Export Promotion Council or Commodity Board. It shows that an exporter is registered with the body and is a member. It is required, where applicable, to claim benefits and avail services under the Foreign Trade Policy.
- Policy provision amended
- DGFT amended Para 2.57 of the Foreign Trade Policy, 2023 to create the exemption.
- Threshold
- The exemption covers consignments up to ₹3 lakh FOB. Larger consignments still need RCMC or Certificate of Registration, where applicable.
- Issuing bodies
- RCMC is obtained from the relevant Export Promotion Council or Commodity Board.
- FOB value
- Free-on-Board value is the price of goods up to loading on the ship or carrier at the port of export. It excludes freight and insurance beyond that point.
Don’t confuse with RCMC vs IEC: The Importer-Exporter Code is a DGFT-issued business identification needed to import or export. RCMC is issued by an EPC or Commodity Board and gives membership. This exemption concerns only RCMC.
Don’t confuse with FOB vs CIF: FOB excludes freight and insurance after loading. CIF includes cost, insurance and freight to the destination port.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Lowers entry barriers for MSMEs, artisans and first-time exporters, who can test overseas markets and build an export track record.
- Supports exports through postal, courier and e-commerce channels with only a marginal effect on total export value.
Problems
- Exempted exporters may stay outside EPCs and miss their market access and promotion support.
- Small consignments still face other hurdles such as logistics costs, returns and compliance in destination markets.
Way forward
- Encourage exporters to join EPCs as they cross the ₹3 lakh threshold.
- Pair the relaxation with simple digital onboarding and awareness for small exporters.
Put in your answer
Low-value exports data: Small consignments make up most shipping bills but a tiny share of export value, which shows the exemption's low revenue risk and wide reach.
No close past question yet.
No practice question for this one; the card may still help an answer. Why: Foreign Trade Policy 2023 para 2.57 amended; RCMC not needed up to Rs 3 lakh FOB. Useful policy fact; question unlikely.
Worth revising until Prelims 2028: most news questions come within two years of the event.