The full form of RCMC is Registration Cum Membership Certificate, it is an important document for businesses involved in the import or export of restricted goods. It is issued by Export Promotion Councils (EPCs), Commodity Boards, and Export Development Authorities under the Foreign Trade Policy (FTP). It serves multiple vital functions, such as validating the exporter’s membership with an authorized agency and granting access to various export-related benefits.
What is RCMC?
The RCMC is an official certificate that verifies an exporter’s registration with a relevant EPC or commodity board, ensuring FTP compliance. It is required to avail of government concessions and incentives related to the import and export of restricted goods.
Why is RCMC Registration Needed?
RCMC Registration is essential for the following:
1. Authorization: Allowing the export or import of restricted goods.
2. Exporter’s Registration : Proving the exporter’s registration with an authorized agency.
3. Access to FTP Benefits: Enabling exporters to access benefits under the FTP, including schemes like Duty Drawback, Merchandise Export from India Scheme (MEIS), and Market Access Initiative (MAI).
Purpose and Benefits of RCMC
The Registration Cum Membership Certificate (RCMC) is far more than just a formality in international trade—it's a gateway to numerous operational advantages and market recognition. Here's how RCMC can transform your export business:
1. Recognition as a Legitimate Exporter
Holding an RCMC certificate signifies your official status as a legitimate exporter, assuring your partners and regulatory bodies worldwide that your business complies with Indian government standards and foreign trade policies. This certification is not just a symbol; it is a testament to your adherence to industry norms, which builds trust and credibility in global markets. As a result, it opens up opportunities for international collaborations and partnerships, helping your business grow its reach and reputation.
2. Access to Concessions and Benefits
RCMC registration unlocks various incentives under the Foreign Trade Policy (FTP). These include benefits like duty drawbacks, tax exemptions, and subsidies, all designed to reduce your operational costs and improve your competitive edge. By taking advantage of these financial concessions, your business can lower the barriers to entry in global markets, enabling you to reinvest resources for expansion and growth.
3. Simplified Licensing Process
RCMC certificate simplifies the typically lengthy and complex process of acquiring essential export permits. Since the certificate signals that your business has already met the necessary export standards, the review process for obtaining additional documentation becomes faster and more efficient. This means less waiting time, quicker market entry, and smoother overall export experience.
4. Access to Market Development Assistance
RCMC holders can benefit from support in promoting their products at global trade fairs and exhibitions. These events offer businesses the chance to display their goods to an international audience, network with potential buyers, and increase their visibility in global markets. Such exposure can significantly enhance your business’s market presence and lead to valuable export opportunities.
Who Issues the RCMC?
RCMCs are issued by various Export Promotion Councils (EPCs), Commodity Boards, and Development Authorities authorized by the DGFT. These authorities help promote the export industry by issuing RCMC for specific product categories. The DGFT recognizes 35 organizations, including 27 EPCs, 6 Commodity Boards, and 2 Development Authorities.
Eligibility Criteria for RCMC
To qualify for RCMC registration, businesses must meet the following essential requirements:
-Engagement in Export-Import Activities: The applicant must be actively involved in exporting or importing goods.
-Import Export Code (IEC): A valid Import Export Code, issued by the Director General of Foreign Trade (DGFT), is required.
-Sector Specification: Applicants must declare the primary sector they operate in (e.g., leather goods, textiles, etc.), and obtain approval from the corresponding export council or board.
-Approval from FIEO or Relevant Authority: If no specific board exists for a sector, approval from the Federation of Indian Export Organizations (FIEO) must be obtained.
Documents Required for RCMC Application
The following documents are needed for RCMC registration:
-IEC Number: Obtained from the DGFT.
-PAN: Permanent Account Number.
-Company Documents: MOA, partnership deed, trust deed, etc.
-GST Certificate: For businesses registered under GST.
-Financial Data: Certified reports of foreign exchange earnings for the last three years.
RCMC Registration Process
Here’s a step-by-step guide to registering for an RCMC:
1. Identify the Relevant Authority: Determine the appropriate Export Promotion Council (EPC) or Commodity Board based on the product or service you export.
2. Prepare Required Documents:
-Import Export Code (IEC)
-Permanent Account Number (PAN)
-Memorandum of Association (MOA) or Partnership Deed (for firms)
-Trust Deed (for trusts)
-Change of Registered Office Certificate (if applicable)
-Foreign exchange earnings data, certified by a Chartered Accountant
-Board resolution or power of attorney (if applicable)
-GST Registration certificate
3. Complete the RCMC Application: Visit the DGFT website to access the online application form.
4. Submit Documents Online: Upload the completed application and required documents to the respective EPC or commodity board website.
5. Pay Registration Fee: The fee varies between councils and boards and is paid online during the application process.
6. Wait for Processing: The processing time typically takes 7 to 10 days, although this can vary.
7. Receive RCMC: Once approved, the RCMC is issued, typically valid for 5 years.
8. Renewal: To renew your RCMC, submit required documents and pay the renewal fee before it expires.
Validity of RCMC
The RCMC is valid for five years, starting from the 1st of April of the licensing year and expiring on the 31st of March.
Types of Exporters and Importers Covered under RCMC
Different types of memberships are available for exporters based on their business scale:
1. Ordinary Membership: For new businesses.
2. Associate Membership: For established traders.
3. Premier Trading House (PTH): For major contributors to India's exports.
4. Star Export House (SEH): For companies with consistent export growth.
5. Trading House (TH): For companies with an annual turnover of INR 100 crores or more.
Compliance with RCMC Regulations
Exporters must comply with RCMC regulations to remain eligible for export-related benefits. Key compliance requirements include:
-Renewal: RCMC must be renewed every five years.
-Adherence to Export-Import Policy: Compliance with DGFT guidelines.
-Export Data Submission: Annual export data must be provided to the DGFT.
-Customs and Foreign Trade Regulations: Adherence to government rules and quality standards.
How Exporters Gain Advantages from RCMC?
Concessions under the Foreign Trade Policy (FTP)
Exporters holding an RCMC gain access to trade concessions under the Foreign Trade Policy (FTP). This certification is crucial for the import or export of goods that are restricted, such as precious metals, electronic items, toys, and food products, among others. By obtaining an RCMC, exporters can legally engage in the trade of such regulated products, streamlining their business operations and ensuring compliance with trade regulations.
Access to Export Incentives
Governments often offer various incentives, subsidies, and schemes to promote exports. An RCMC is typically a prerequisite to avail of these benefits, enabling exporters to reduce operational costs and enhance their competitiveness in international markets. With this certification, businesses can take advantage of government-sponsored programs that support export growth.
Enhanced Recognition and Credibility
An RCMC certificate boosts an exporter’s credibility, establishing them as a legitimate business entity within the global export community. It assures international buyers that the exporter is recognized by the Indian government and adheres to the required trade policies, fostering trust and opening doors to new business opportunities.
Concessions for RCMC Holders
Duty Drawback
An essential benefit of RCMC is the ability to claim duty drawback under the FTP. This scheme allows exporters to recover the customs duties paid on raw materials imported for the production of goods destined for export. However, exporters must possess a valid RCMC to qualify for this refund, which can significantly lower operational costs.
Tax Exemptions
RCMC holders are eligible for tax exemptions that reduce tax liabilities and increase overall profitability. These exemptions serve to improve the financial sustainability of export businesses, making them more competitive in global markets.
Financial Assistance
With an RCMC, exporters can access various financial assistance programs provided by the government. These programs help businesses secure funding to expand their operations, invest in new technologies, and increase their export capacity.
RCMC Registration Process: DGFT Common Digital Platform
The e-RCMC module launched by the DGFT simplifies the registration process. This digital platform allows exporters to apply for, modify, or renew their RCMC certificates without needing physical visits. It provides a centralized, contactless, and efficient method for managing RCMC-related processes.
By obtaining an RCMC, businesses can enhance their credibility, streamline customs processes, and gain access to government export benefits, ultimately boosting their international trade operations.
FAQs
1. Can we export without RCMC?
Ans. According to the Foreign Trade Policy (FTP), exporters are required to obtain a Registration-Cum-Membership Certificate (RCMC) to avail of benefits under the policy. While it is possible to export without an RCMC, having one provides several advantages, such as access to customs and excise benefits and eligibility for various government schemes.
2. What is the difference between IEC and RCMC?
Ans. The IEC (Import Export Code) is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT), which is mandatory for anyone engaged in import or export activities in India. On the other hand, RCMC (Registration-Cum-Membership Certificate) is issued by Export Promotion Councils or Commodity Boards to certify that the exporter is registered with the relevant authority for exporting specific goods. While IEC is necessary for all exporters, RCMC is required to avail specific benefits under the Foreign Trade Policy.
3. What is the fee for RCMC registration?
Ans. The registration fee for RCMC includes an entrance fee of Rs. 1,180 and an annual fee of Rs. 9,440. These fees are subject to change depending on the specific Export Promotion Council or Commodity Board overseeing the registration.
4. Are RCMC and APEDA the same?
Ans. APEDA (Agricultural and Processed Food Products Export Development Authority) is one of the Export Promotion Councils that requires businesses in the agricultural and processed food sector to register for an RCMC. While both RCMC and APEDA are related to the export process, APEDA is a specific authority, and RCMC is a broader certification process.
5. What is the fee for IEC code registration?
Ans. The government fee for registering for an IEC is Rs. 500. The payment is made via Electronic Fund Transfer (EFT) during the online application process. Once the application is successfully processed, the IEC allotment letter containing the 10-digit code will be sent to the applicant's address.
6. What is a DGFT licence?
Ans. The Directorate General of Foreign Trade (DGFT) is the government body responsible for issuing licenses for export and import businesses in India. Any business or individual engaged in importing or exporting goods must obtain the relevant license from the DGFT, which is a prerequisite for conducting international trade activities.
