Overview
The RCMC (Registration Cum Membership Certificate) is an authorization document for importing or exporting restricted products according to the Foreign Trade Policy (FTP). Typically, the Export Promotion Councils
(EPCs),Commodity Boards, and Export Development Authorities established by the Director General of Foreign Trade (DGFT) for each restricted product issue this certificate.
More over, it functions as proof of membership or registration of an exporter with a specific EPC, commodity board, or export development authority. The RCMC is essential to benefit from concessions provided under the FTP for importing or exporting restricted goods. IndiaFilings, as a professional service provider, can assist businesses in obtaining RCMC registration online quickly and efficiently. We have years of experience handling RCMC registration process and can provide end-to-end support to our clients.
OVERVIEW
What is RCMC
Certificate?
Importers and Exporters must be aware of what
is RCMC certificate. RCMC full form stands for
Registration-Cum-Membership Certificate. The RCMC certificate validates an
exporter dealing with products registered
with an agency or organization authorized by
the Indian Government. This certificate of RCMC meaning indicates that the
exporter is registered with the authorized agency or organization.
Why RCMC Registration?
The RCMC registration process online serves
several purposes.
Firstly, it authorizes importing or exporting
products that fall under the restricted category per the Foreign Trade Policy
(FTP).
Secondly, it is evidence of membership or
registration of an exporter with a specific EPC, commodity board, or export
development authority.
Thirdly, it is required to take advantage of concessions provided under the FTP for the import/export of restricted goods.
Eligibility
Exporter or Merchandiser (Merchant)
Before applying for RCMC registration, the exporter or
merchandiser must confirm that their business deals with imports and exports.
This is one of the key requirements for starting a manufacturing company in
India.
Additionally, the exporter must prove they have applied
for an Import Export Code (IEC) from the authorized authority. The DGFT
(Director General of Foreign Trade) regulates the IEC.
Business Main Line Declaration In the Business Main Line
Declaration, the exporter or merchant must specify their primary business line.
For instance, if their main business is dealing with
coffee and tea products, they need to consult the Tea and
Coffee
Promotion Board. In case there is no export promotion
board or regulatory agency for the commodities dealt with by the exporter, this
needs to be mentioned as well.
Consent from the Board of the FIEO The applicant must
obtain the necessary board permission or clearance from FIEO. If no specialized
board is available for a specific product, the applicant needs to apply for
approval to FIEO. In addition, obtaining FIEO
authorization is also required for RCMC registration online.
Benefits
Obtaining a Registration Cum Membership Certificate
(RCMC) offers several benefits to exporters. Some of these benefits include:
Access to export promotion schemes and benefits - RCMC is
a mandatory requirement for availing export promotion schemes and benefits such
as Duty Drawback, Merchandise Export from India Scheme (MEIS), and Market
Access Initiative (MAI).
Facilitation in import and export - RCMC makes it easier
for exporters to import or export restricted goods as the certificate validates
the exporter's authenticity and products' authenticity.
Easier customs clearance - RCMC reduces the time and
effort required for customs clearance as it proves the exporter's membership
with a recognized authority and their compliance with government regulations.
Enhances credibility - RCMC enhances the credibility of
the exporter as it is a testament to their compliance with government
regulations and standards.
Access to market information - RCMC enables exporters to
stay updated with the latest market information and developments through export
promotion activities and programs organized by Export Promotion Councils and
Commodity Boards.
RCMC Registering Authorities
The Registering Authorities responsible for issuing the
RCMC Certificate are empowered by the DGFT. These authorities include the
Export Promotion Councils, Commodity Boards, and Export Development Authority.
Their primary function is to promote and develop the
Indian export industry, and each authority is responsible for promoting a
particular group of products.
The DGFT currently authorizes 35 organizations to issue
the RCMC certificate, including 27 Export Promotion Councils, 6 Commodity
Boards, and 2 Development Authorities, which work towards promoting the
import/export of restricted items.
Export promotion councils
These authorities are categorized based on the type of
products they deal with. Each of India's Export Promotion Councils and
commodities boards categorizes itself according to the Type of products.
List of Export Promotion Councils, Commodity Boards, and
Development Authorities in India:
Export Promotion Councils:
• Agricultural
and Processed Food Products Export Development Authority (APEDA)
• Apparel
Export Promotion Council (AEPC)
• Basic
Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL)
• Carpet
Export Promotion Council (CEPC)
• Chemicals
and Allied Products Export Promotion Council (CAPEXIL)
• Council for
Leather Exports (CLE)
• Electronics
and Computer Software Export Promotion Council (ESC)
• Engineering
Export Promotion Council (EEPC)
• Federation
of Indian Export Organisations (FIEO)
• Gems and
Jewellery Export Promotion Council (GJEPC)
• Handloom
Export Promotion Council (HEPC)
• Handicrafts
and Handlooms Export Corporation of India (HHEC)
• Indian
Oilseeds and Produce Export Promotion Council (IOPEPC)
• Indian Silk
Export Promotion Council (ISEPC)
• Marine
Products Export Development Authority (MPEDA)
• Pharmaceuticals
Export Promotion Council of India (PHARMEXCIL)
• Plastics
Export Promotion Council (PLEXCONCIL)
• Project
Exports Promotion Council of India (PEPC)
• Services
Export Promotion Council (SEPC)
• Shellac
Export Promotion Council (SPEC)
• Sports Goods
Export Promotion Council (SGEPC)
• Synthetic
and Rayon Textiles Export Promotion Council (SRTEPC)
• Tea Board of
India
• Tobacco
Board
• Wool and
Woollens Export Promotion Council (WWEPC)
• The Coffee
Board of India
• The Cotton
Textiles Export Promotion Council (TEXPROCIL)
Commodity Boards
• Coir Board
• Coffee Board
• Rubber Board
• Spices Board
• Tea Board of
India
• Tobacco
Board
Development Authorities
• Electronics
Industries Development of India (ELCID)
• National
Centre for Trade Information (NCTI)
If an export product is not covered by any Export
Promotion Council or Commodity Board, the exporter can obtain the RCMC from the
Federation of Indian Exporters Organization (FIEO).
If the exporter deals with multi-products and the
situation are unresolved, they can also obtain RCMC from FIEO.
For multi-product exporters in the North Eastern States,
the RCMC can be obtained from Shellac & Forest Products Export Promotion
Council (except for products managed by APEDA, Spices Board, and Tea Board).
For exporters of handicrafts and handloom products from
Jammu & Kashmir, the Director of Handicrafts, Government of Jammu &
Kashmir, is authorized to issue the RCMC.
Validity of RCMC
The RCMC remains valid starting from the issuance date on
the 1st of April of the licensing year and is valid for five years, concluding
on the 31st of March.
Documents Required
The application form for RCMC must be
accompanied by several mandatory documents, including:
· An IEC number issued by the regional
licensing authority
· A Permanent Account Number (PAN)
granted by the competent authority
· The Memorandum of Association (MOA)
for corporate, institutional, private limited, or limited companies
· A self-certified copy of the
partnership deed for partnership companies and individuals
· The trust deed for trusts,
institutional or corporate entities
· A certificate from the Registrar of
Companies regarding the registered office change of the company
· Certified data on the company's
foreign exchange earnings over the past three years, provided by the company's
chartered accountant
· A board resolution or power of
attorney issued in favor of the signing authority, if the name of the signing
authority is not mentioned in the IEC/MOA/partnership deed/trust deed of the
company/firm/trust
· A GST registration certificate.
Types
of Exporters/Importers Covered - RCMC
The
online RCMC application process is available for various types of exporters and
importers, including:
· Ordinary Membership: This type of
membership is suitable for businesses new to the export and import industry and
looking for basic membership.
· Associate Membership: This membership
is for entities involved in the export and import trade for a significant
period and has an established business. The fee for associate membership is
higher than ordinary
· membership and includes a small amount
of GST.
· Premier Trading House (PTH)
Membership: This membership is for companies with a significant share in
India's total exports and substantially contributed to India's international
trade.
· Star Export House (SEH) Membership:
This membership is for companies that have demonstrated consistent export
growth and earned significant foreign exchange.
· Trading House (TH) Membership: This
membership is for companies engaged in import and export activities with an
annual turnover of at least INR 100 crores.
Compliance with RCMC
Compliance with the RCMC Certificate is mandatory for
exporters who wish to participate in various government schemes and programs
related to exports. Some of the important compliance requirements related to
RCMC are as follows:
Renewal of RCMC: The RCMC is valid for five years, after
which it needs to be renewed. Failure to renew the RCMC can result in
non-compliance.
Adherence to Export-Import Policy: Exporters must adhere
to the export-import policy guidelines and conditions related to the RCMC
issued by the DGFT.
Submission of Annual Export Data: Exporters must submit
their annual export data to the DGFT as required. Failure to do so can result
in the suspension or cancellation of the RCMC.
Compliance with Customs Regulations: Exporters must
comply with the customs regulations and procedures related to the export of
goods. Non-compliance can result in penalties and other legal actions.
Compliance with Foreign Trade Regulations: Exporters must
comply with the various foreign trade regulations related to the export of
goods, such as compliance with export control regulations, sanctions, and embargoes.
Adherence to Quality Standards: Exporters must adhere to
the quality standards specified by the importing country for exporting goods.
Maintenance of Records: Exporters must maintain records
related to their export transactions and comply with the record-keeping
requirements of the DGFT.
Compliance with RCMC requirements is essential for
exporters to participate in various export-related schemes and programs and to
avoid penalties and legal actions.
RCMC Registration Procedure: DGFT Common Digital Platform
for filing of RCMC
The DGFT has recently launched the e-RCMC module as part
of its IT revamp project. This module is a common digital platform designed to
provide exporters, importers, and issuing agencies with single-point access for
RCMC/RC-related processes, including new/modified/renewal
RCMC/RC applications. The primary aim of this platform is to offer an
electronic, contactless single window for RCMC/RC-related processes, making
obtaining
RCMC certificates simpler and more efficient.