DGFT Eases Export Compliance: What MSMEs Need to Know

 



For Indian exporters, the latest DGFT changes are focused on one practical issue: making export processes easier to manage. Two changes are already in effect, while another proposed reform could change how businesses document the origin of goods.

For MSMEs that are expanding exports, using courier or smaller shipments, or importing inputs for manufacturing, these changes are worth tracking.

RCMC Relief for Small Export Shipments

The DGFT has introduced a de minimis exemption from the Registration-cum-Membership Certificate (RCMC) requirement for export consignments with FOB value up to ₹3 lakh.

Under DGFT Notification No. 36/2026-27 dated 15 September 2026, exporters will not need an RCMC or Certificate of Registration where such a certificate would otherwise be required under the Foreign Trade Policy, provided the shipment's FOB value does not exceed ₹3 lakh. The exemption is effective immediately.

The government has specifically linked the move to reducing compliance for new and small exporters and facilitating exports through postal, courier and other emerging channels.

→ What this means for you: If your business is testing international markets through smaller orders, samples or e-commerce shipments, the initial compliance burden can be lower. For consignments above ₹3 lakh, the existing RCMC requirement continues wherever applicable.

PSIC Process Gets a Revised Timeline

DGFT has also revised the timeline for issuing Pre-Shipment Inspection Certificates (PSICs) through Trade Notice No. 28/2026-27 dated 16 September 2026.

The revised provision says that a PSIC should be generated and issued within two days from the date of inspection. DGFT has also provided a one-time seven-day relaxation for recognised Pre-Shipment Inspection Agencies to clear certain backlog PSICs relating to inspections conducted before 25 August 2026.

The notice also requires PSIC uploading to be completed from the same geographical location or country where the inspection was carried out.

→ What this means for you: Exporters whose products require pre-shipment inspection should build the new two-day timeline into their shipment planning and make sure inspection and documentation teams are aligned.

DGFT Is Reviewing Rules of Origin

A separate development could have a bigger long-term impact on exporters using imported inputs.

Through Trade Notice No. 27/2026-27 dated 14 September 2026, DGFT invited comments on proposed amendments to Para 2.93 of the Handbook of Procedures, 2023 concerning Non-Preferential Rules of Origin. The proposal covers how origin would be determined for exports and imports, including processing requirements, tariff-heading changes and value-addition criteria.

The proposal also includes provisions relating to electronic Certificates of Origin and self-certification by eligible Status Holder manufacturer exporters. These are proposed changes, not final rules, so businesses should not change their existing procedures solely on the basis of the draft.

→ What this means for you: Manufacturers using imported raw materials or components should keep an eye on the consultation, particularly if origin documentation is important for their export contracts or customs requirements.

What Exporting MSMEs Should Check Now

These updates are not just paperwork changes. Export compliance can directly affect shipment timelines, customer commitments and working capital cycles.

If your company exports regularly, review:

  • Whether smaller consignments can benefit from the new ₹3 lakh RCMC exemption.
  • Whether your products require a PSIC and whether the new two-day issuance timeline fits your dispatch schedule.
  • Whether your product costing and manufacturing records clearly establish where inputs are sourced and processed.
  • Whether your export documentation is organised enough to respond quickly if origin verification is required.
  • Whether additional export orders could increase your inventory and working capital requirement.

The Bigger Picture for Growing Exporters

The direction is fairly clear: export processes are becoming increasingly digital, time-bound and documentation-driven.

For a growing MSME, that means export readiness is not only about finding overseas buyers. The business also needs clean documentation, reliable product records and enough financial headroom to fulfil larger orders without putting pressure on cash flow.

The new ₹3 lakh RCMC exemption can make smaller export transactions easier, while the PSIC timeline change brings greater discipline to inspection-dependent shipments. At the same time, the proposed rules of origin show why manufacturers should keep their sourcing and production records in order.

The practical takeaway: If exports are becoming a bigger part of your business, review your compliance process and working capital position together rather than treating them as separate issues.

If these changes affect your export, credit or working capital position, talk to SME PAISA for debt syndication, credit consulting and working capital advisory.

Sources: Ministry of Commerce & Industry, Press Information Bureau; Directorate General of Foreign Trade, Notifications and Trade Notices, September 2026.

— Team SME PAISA

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