New Delhi, July 21 (SocialNews.XYZ) The Directorate General of Foreign Trade (DGFT) has proposed to exempt export consignments worth up to Rs 10,000 from the requirement of obtaining a Registration-cum-Membership Certificate (RCMC), 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.
Source: IANS
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