Govt proposes to ease rules to help small exporters
New Delhi, July 21
The Directorate General of Foreign Trade has proposed to exempt export consignments worth up to Rs 10,000 from the requirement of obtaining a Registration-cum-Membership Certificate, to help small exporters grow their businesses.
The move is expected to benefit micro, small and medium enterprises (MSMEs), artisans and e-commerce sellers who export goods through postal or courier channels.
These small exporters will be allowed to skip RCMC requirements when applying for import or export authorisations or claiming Foreign Trade Policy (FTP) benefits.
However, the exemption does not apply to items listed as "Restricted" under the ITC (HS) classification.
In a trade notice issued on July 20, the DGFT invited comments from exporters, industry associations and other stakeholders on the proposed amendment to Paragraph 2.57 of the Foreign Trade Policy (FTP) 2023. Stakeholders have been given 10 days to send their feedback before the proposal is finalised.
Currently, exporters generally need an RCMC or a Certificate of Registration to apply for import or export authorisations and to claim benefits available under the Foreign Trade Policy.
An RCMC is issued by Export Promotion Councils or other authorised bodies and serves as proof that an exporter is registered with the relevant export organisation.
Under the proposed amendment, exporters shipping goods with a free-on-board (FOB) value of up to Rs 10,000 will no longer have to obtain an RCMC or Certificate of Registration when applying for authorisations or other benefits under the FTP.
According to the DGFT, the proposal is meant to introduce a 'de minimis' exemption for low-value export shipments, especially those sent through post offices, courier services and other emerging export channels.
The removal of the compliance requirement for smaller consignments, the government aims to reduce the regulatory burden on individuals and small businesses engaged in exports.
The move comes in the backdrop of growing uncertainties in global markets amid the challenging geopolitical tensions.
The ease of doing business is also expected to help small exporters to capitalise on the new opportunities that have been thrown open with the finalisation of new free trade agreements with several countries recently.
— IANS
Reader Comments
This is good for small e-commerce sellers on Amazon and Flipkart who export. But we need to ensure that the exemption is not misused for restricted items. The DGFT must have strict monitoring in place, otherwise some exporters may try to exploit this loophole.
At last some ease of doing business! I run a small export business from Ludhiana shipping handicrafts to Europe. The RCMC process was so time-consuming and costly for small shipments. This will encourage more people to think globally. Ab hum bhi global ban sakte hain! 🚀
Good move but 10 days is too short for feedback from stakeholders. Many small exporters in rural areas may not even know about this notice. The government should extend the comment period and also translate the notice in regional languages for better reach. Yeh sab urban-centric decision hai thoda.
Finally something for small players! My mother makes organic pickles and we have been wanting to export to UAE. The RCMC process was a big hurdle for us. This Rs 10,000 exemption will help her test the international market without all the compliance burden. Thank you DGFT! ❤️
This is a smart policy move. The 'de minimis' exemption will reduce transaction costs dramatically for micro-exporters. India has huge potential in cross-border e-commerce from villages. But we also need better logistics infrastructure for postal and courier channels to actually benefit from this.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.