Why the RCMC waiver matters
DGFT, through Trade Notice No. **/****–** dated July **, ****, has invited stakeholder comments on a proposed amendment to Paragraph *.** of the FTP ****. The proposal would exempt export consignments with a Free-on-Board (FOB) value of up to ****;**,*** (~$***) from the RCMC requirement for postal, courier and e-commerce shipments, while restricted items remain excluded. Under the existing FTP provisions, exporters must obtain an RCMC from Export Promotion Councils, such as the Apparel Export Promotion Council (AEPC), to access DGFT authorisations and FTP benefits. Although Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) have not required an RCMC since October ****, the proposed amendment extends the exemption to the smallest consignments. The proposal is particularly significant for India**;s apparel industry, one of the country**;s largest export sectors, even though India ranks only fifth globally in apparel exports at US$**.** billion, well behind China and Bangladesh.
The proposal also matters because of India**;s strong MSME export base. MSME-related products accounted for **.**% of India**;s merchandise exports in FY****–**, up from **.**% a year earlier, according to the Ministry of MSME**;s reply to Parliament on December *, ****. MSME export value tripled from ****;*.** lakh crore in FY****–** to ****;**.** lakh crore in FY****–**. Apparel is one of the country**;s largest MSME-driven export industries, making lower compliance costs particularly relevant for new exporters.
How the waiver cuts compliance costs
