Paras Nagpal, Business Consultant, GetMyCA | Last updated: October 2026
Quick Answer
DGFT Notification No. 36/2026-27 provides that an export consignment with an FOB value of up to ₹3 lakh does not need an RCMC or Certificate of Registration where that certificate would otherwise be required under the Foreign Trade Policy. The threshold applies per export consignment, not to annual turnover or total yearly exports. The relief does not remove IEC, Customs, GST, product-licence or destination-country requirements.
Small exporters in India have received an important compliance relaxation under the Foreign Trade Policy 2023. The Directorate General of Foreign Trade (DGFT) amended FTP Para 2.57 so that the applicable RCMC or Certificate of Registration requirement will not apply to a qualifying low-value export consignment.
The legal notification is dated 15 September 2026 and states that the amendment takes effect immediately. The Government's explanatory PIB release was published on 16 September 2026. This distinction explains why both dates may appear in online articles.
For MSMEs, artisans, first-time exporters and businesses testing overseas markets through smaller shipments, the change can remove one initial compliance requirement. It is not a blanket exemption from export law.
What Is the New ₹3 Lakh RCMC Exemption?
DGFT Notification No. 36/2026-27 inserted a new sub-paragraph (c) after Para 2.57(b) of FTP 2023. It provides that an export consignment with an FOB value not exceeding ₹3,00,000 does not require an RCMC or Certificate of Registration where such a requirement would otherwise apply under the Foreign Trade Policy.
The threshold is tested against the individual export consignment. It is not a limit on the exporter's annual turnover, company revenue, total yearly exports or lifetime exports.
| Export consignment FOB value |
Does the low-value exemption apply? |
| ₹1,50,000 |
Yes, subject to the other conditions |
| ₹2,75,000 |
Yes, subject to the other conditions |
| ₹3,00,000 |
Yes, because the value does not exceed ₹3 lakh |
| ₹3,00,001 |
No; check normal RCMC requirements |
| ₹5,00,000 |
No; check normal RCMC requirements |
What Is RCMC and Why Is It Relevant?
RCMC stands for Registration-cum-Membership Certificate. It is generally issued by an Export Promotion Council, Commodity Board, Development Authority or another recognised registering authority based on the exporter's main line of business.
RCMC is relevant in specified situations under the Foreign Trade Policy, including certain authorisations, benefits and concessions. It was therefore inaccurate to say that RCMC was compulsory for every export shipment in every situation even before this amendment.
When RCMC is required, an exporter normally checks the council or board connected with the product that forms the main line of export business. A product not covered by a specific EPC or Commodity Board may require the exporter to consider FIEO, subject to the applicable rules.
Is the ₹3 Lakh Limit Per Shipment or Per Year?
The limit is based on the FOB value of an individual export consignment. It is not ₹3 lakh of annual turnover, total yearly exports, company revenue or lifetime exports.
For example, an exporter may have one genuinely separate consignment with an FOB value of ₹2 lakh and a later separate consignment worth ₹2.50 lakh. Each consignment is examined on its own FOB value and the applicable rules.
However, the notification does not specifically explain how commercially linked transactions deliberately divided into smaller shipments should be treated. Exporters should not assume that artificially splitting one larger commercial transaction automatically qualifies for the exemption.
What Does FOB Value Mean?
FOB means Free on Board. For this exemption, the relevant test is the FOB value of the export consignment. Exporters should not automatically substitute marketplace order value, retail selling price, annual sales, business turnover or another invoice figure for the notified FOB value.
Threshold examples: ₹2,95,000 is within the threshold; ₹3,00,000 is within the threshold; ₹3,10,000 exceeds the threshold. Keep supporting export records showing the FOB value used for the consignment.
USD 3,000, which appears in the Government's statistical analysis of low-value exports, is not the legal RCMC exemption threshold. The notified threshold is ₹3,00,000 FOB per export consignment.
What Changed in FTP Para 2.57?
In simple terms, the position is:
- Earlier: where Para 2.57 required an RCMC or Certificate of Registration, the exporter had to comply with that requirement.
- Now: where the export consignment's FOB value is ₹3 lakh or less, the applicable RCMC or Certificate of Registration requirement does not apply.
This is a limited relaxation within the RCMC framework. It does not change the export policy status of the product and does not cancel other registrations, licences or approvals.
Why Did DGFT Introduce the Exemption?
The measure is intended to reduce the compliance burden for smaller exporters and promote low-value exports through Postal, Courier, e-commerce and other emerging channels.
According to the PIB release dated 16 September 2026, consignments up to USD 3,000 accounted for around 43% of shipping bills but only 0.86% of India's merchandise export value during FY 2021-22 to FY 2025-26. The figures indicated that many transactions represented a relatively small share of total export value.
Why Do Some Articles Mention a ₹10,000 Limit?
₹10,000 was an earlier proposal, not the final rule. DGFT Trade Notice No. 14/2026-27 dated 20 July 2026 invited stakeholder comments on a draft amendment proposing an exemption for export consignments with FOB value up to ₹10,000.
The final Notification No. 36/2026-27 dated 15 September 2026 increased the threshold to ₹3 lakh. Exporters relying on older articles should check whether the content was updated after the final notification.
Does the Exemption Also Remove IEC Requirements?
No. Notification No. 36/2026-27 deals with RCMC or Certificate of Registration. It does not remove IEC requirements.
For export of goods, IEC requirements are governed separately. IEC is generally required unless the exporter or transaction falls within a specific exemption. Therefore, RCMC exemption is not the same as IEC exemption.
Businesses that still need an IEC can review GetMyCA's IEC Registration in India guidance for the DGFT application process and documentation.
What Other Export Compliances Continue Below ₹3 Lakh?
A qualifying low-value shipment must still comply with other applicable laws. Depending on the product and transaction, an exporter may need to check:
- IEC status and Customs requirements
- shipping and commercial documentation
- GST and LUT requirements, where applicable
- product-specific licences, NOCs or regulatory approvals
- restricted or prohibited export policy
- quality or inspection certificates
- FSSAI, plant quarantine or similar requirements, where applicable
- commodity-specific registrations
- destination-country requirements
Exporters using the LUT or GST refund route can separately review GetMyCA's GST refund guidance. Only the applicable RCMC or Certificate of Registration requirement has been relaxed.
Does the Exemption Apply to Courier, Postal and E-Commerce Exports?
Small-value export channels are an important focus of the change. The notification and PIB explanation discuss Postal, Courier, e-commerce and other emerging channels as routes that may benefit from lower entry barriers.
Courier, postal and e-commerce exporters must still comply with the rules applicable to their products, shipment method and destination. The exemption does not make a restricted product freely exportable or remove Customs and tax documentation.
Can Merchant Exporters Use the ₹3 Lakh Exemption?
The final notification applies the threshold to an export consignment. It does not create separate thresholds for manufacturer exporters and merchant exporters.
Merchant exporters should examine the consignment's FOB value, whether an RCMC or Certificate of Registration would otherwise apply, and whether separate product-specific or statutory requirements exist. Crossing ₹3 lakh does not automatically mean that FIEO is the correct registering authority; the relevant EPC or Commodity Board should be identified first.
What About APEDA and Other Commodity Board Registrations?
The DGFT change should not be interpreted as cancelling every sector-specific registration requirement. APEDA states that RCMC applications for APEDA Scheduled Products are processed through the DGFT e-RCMC system. Exporters dealing in those products should check the current APEDA and DGFT guidance applicable to the product and registration requirement.
A shipment below ₹3 lakh should not automatically be assumed to remove a separate APEDA, Commodity Board, product-safety or statutory compliance requirement. The same caution applies where an EPC or sector-specific law imposes an independent registration or certification requirement.
Is RCMC Required for RoDTEP, RoSCTL or Duty Drawback?
This issue was clarified separately before the September 2026 exemption. DGFT Trade Notice No. 19/2024-25 dated 4 October 2024 clarified that RCMC is not required for specified post-export remission-based schemes such as RoDTEP, RoSCTL and Duty Drawback.
Therefore, an exporter should not assume that RCMC is needed only because it wants to claim RoDTEP. The ₹3 lakh exemption and the earlier remission-scheme clarification address different RCMC situations.
What Happens When a Shipment Exceeds ₹3 Lakh?
Suppose a business makes one export of ₹1.80 lakh FOB, a second export of ₹2.40 lakh FOB and a later export of ₹5 lakh FOB. The first two consignments fall within the threshold. For the ₹5 lakh consignment, the low-value exemption no longer applies.
The exporter must then check whether an RCMC or Certificate of Registration is otherwise required under FTP 2023. If it is required, the correct EPC, Commodity Board, Development Authority or other registering authority should be identified based on the exporter's main line of business.
Do You Need to Apply Separately for the Exemption?
Notification No. 36/2026-27 creates the exemption through FTP Para 2.57(c). It does not prescribe a separate application merely to claim the low-value RCMC relief.
Exporters should nevertheless maintain records supporting the export consignment, FOB value, invoice, shipping details and all other applicable export compliances. Any separate product licence, registration or statutory approval must still be completed where applicable.
Should an Existing RCMC Be Cancelled?
No automatic cancellation conclusion should be drawn simply because the ₹3 lakh exemption has been introduced. An existing RCMC may remain relevant for future consignments above ₹3 lakh where RCMC applies, FTP authorisations or benefits requiring RCMC, the exporter's relationship with the relevant EPC or Commodity Board, and other registration purposes.
Notification No. 36/2026-27 does not state that existing RCMCs must be cancelled or surrendered.
Practical Checklist Before Exporting Below ₹3 Lakh
- Confirm that the FOB value of the individual consignment is ₹3,00,000 or less.
- Check whether an RCMC or Certificate of Registration would otherwise apply.
- Confirm that the IEC is active or that a specific IEC exemption applies.
- Check whether the product is freely exportable.
- Identify any product licence, NOC, statutory registration or sector-specific requirement.
- Keep Customs, GST, invoice and shipping documents ready.
- Check whether an EPC or Commodity Board has a separate product-specific requirement.
- Ensure the transaction is genuinely separate and not an artificial split of a larger commercial order.
- Keep records supporting the FOB value.
- If future shipments may exceed ₹3 lakh, identify the correct registering authority early.
Frequently Asked Questions
Is RCMC mandatory for exports below ₹3 lakh in 2026?
Where an RCMC or Certificate of Registration would otherwise apply, Notification No. 36/2026-27 provides an exemption if the export consignment's FOB value does not exceed ₹3 lakh.
Is ₹3 lakh calculated per shipment or per year?
The threshold applies to the FOB value of an export consignment, not the exporter's annual turnover or yearly export value.
Is exactly ₹3,00,000 covered?
Yes. The notification says the FOB value must not exceed ₹3,00,000, so exactly ₹3 lakh is within the threshold.
Do I need RCMC if my shipment is ₹3.5 lakh?
The ₹3 lakh exemption will not apply. Check whether RCMC or a Certificate of Registration is otherwise required for the transaction.
Do I still need IEC for a ₹2 lakh export?
The RCMC notification does not remove IEC requirements. IEC is governed separately and is generally required for goods exports unless a specific exemption applies.
Can I claim RoDTEP without RCMC?
DGFT Trade Notice No. 19/2024-25 clarified that RCMC is not required for specified post-export remission schemes such as RoDTEP, RoSCTL and Duty Drawback.
Does the exemption automatically remove APEDA registration?
Do not assume so. APEDA Scheduled Products and other regulated categories may have separate statutory, registration or product-specific requirements that should be checked independently.
Can I divide a ₹6 lakh order into two ₹3 lakh shipments?
The notification uses a per-consignment threshold but does not specifically clarify commercially linked transactions deliberately divided into multiple shipments. Artificial splitting should not be assumed to qualify automatically.
Which EPC should I choose when RCMC becomes applicable?
Normally, first check the Export Promotion Council or Commodity Board connected with the exporter's main line of business. Where no EPC or Commodity Board covers the product, or in certain multi-product cases, FIEO may be relevant.
Do I need to apply separately to claim the ₹3 lakh exemption?
The notification does not prescribe a separate exemption application merely for claiming this low-value relief. Keep proper shipment and FOB-value records.
Should I cancel my existing RCMC?
No automatic cancellation is required by the notification. An existing RCMC may remain relevant for larger consignments, other FTP requirements or council-related purposes.
Did the exemption start on 15 or 16 September 2026?
The DGFT notification is dated 15 September 2026 and states that it takes effect immediately. The PIB explanatory release was published on 16 September 2026, which explains the date difference seen on some websites.
Final Thoughts
The RCMC exemption up to ₹3 lakh reduces an initial compliance requirement for qualifying low-value export consignments. It is limited to the applicable RCMC or Certificate of Registration requirement.
Before exporting, separately check the FOB value, IEC status, product export policy, sector-specific registrations, Customs requirements, GST/LUT requirements and the relevant EPC or Commodity Board. As consignments grow beyond ₹3 lakh, review the normal RCMC requirements and identify the correct registering authority before proceeding.
Official References and Verification Note
Disclaimer: This article is for general informational purposes. RCMC, IEC, export-policy, Customs, GST and product-specific requirements may vary depending on the exporter, product, destination and transaction. Verify the latest DGFT and relevant statutory-authority requirements before acting.