RCMC Registration
RCMC Registration
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Import and export facilitation
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Simplified customs clearance
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Increases one's credibility
RCMC Registration
As per the Foreign Trade Policy (FTP), the RCMC (Registration Cum Membership Certificate) is a document that grants permission for the import or export of restricted goods. This certificate is normally issued by the Export Development Authority, the Export Promotion Councils (EPCs), and the Commodity Boards that the Director General of Foreign Trade (DGFT) established for each prohibited product. Additionally, it serves as documentation of an exporter’s registration or membership with a particular export promotion council, commodity board, or export development authority. Benefiting from FTP concessions for the import or export of restricted commodities requires the RCMC.
Registration-Cum-Membership Certificate
An exporter dealing with products registered with an agency or organization authorized by the Indian government is verified by the Registration-Cum-Membership Certificate (RCMC). The exporter’s registration with the approved agency or organization is verified by this certificate.
Why RCMC Registration?
The registration with RCMC fulfills multiple functions.
- First of all, it permits the import or export of goods that are classified as restricted under the Foreign Trade Policy (FTP).
- Second, it is proof that an exporter is registered with or a member of a particular export promotion council, commodity board, or export development authority.
- Thirdly, in order to import or export restricted items, it is necessary to benefit from the concessions offered by the FTP.
Eligibility for RCMC Registration Online
Merchandiser or exporter (merchant)
- Prior to submitting an application for RCMC registration, the merchandiser or exporter needs to verify that their company engages in import and export activities. One of the main prerequisites for establishing a manufacturing business in India is this.
Business Main Line Declaration
- The principal business line of the exporter or merchant must be specified in the Business Main Line Declaration. For example, they should speak with the Tea and Coffee Promotion Board if their primary line of business is selling tea and coffee items. It should be noted if the exporter’s commodities are not regulated by an export promotion board or other organization.
Consent from the Board of the FIEO
- The applicant needs to get the required board approval or FIEO clearance. In the event that a product does not have a dedicated board, the applicant must submit to FIEO for approval. Furthermore, FIEO authorization must be obtained in order to complete the RCMC registration process.
Benefits of RCMC
For exporters, obtaining a Registration Cum Membership Certificate (RCMC) has various advantages. Among these advantages are:
- Access to perks and programs for export promotion – To be eligible for export promotion programs and incentives like Duty Drawback, Merchandise Export from India Scheme (MEIS), and Market Access Initiative (MAI), one must meet the requirements of RCMC.
- Import and export facilitation – Because the certificate verifies the validity of both the exporter and the products, RCMC facilitates the import or export of prohibited goods for exporters.
- Simplified customs clearance – Because RCMC demonstrates the exporter’s conformity with government regulations and participation in a recognized body, it expedites the time and effort needed for customs clearance.
- Increases one’s credibility – The exporter’s trustworthiness is increased by RCMC, as it serves as evidence of their adherence to official guidelines and requirements.
- Information on the market is available –Through export promotion activities and programs run by Export Promotion Councils and Commodity Boards, RCMC makes it possible for exporters to stay current on market information and changes.
Registering Authorities of the RCMC
The DGFT grants authority to the Registering Authorities that are in charge of providing the RCMC Certificate. These authorities consist of the Export Development Authority, Commodity Boards, and Export Promotion Councils.
The principal role of these authorities is to foster and advance the Indian export sector, with specific product group promotion being their responsibility.
Currently, 35 organizations—27 Export Promotion Councils, 6 Commodity Boards, and 2 Development Authorities—are authorized by the DGFT to issue the RCMC certificate. These organizations strive to promote the import and export of restricted goods.
Councils for export promotion
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 Indian Development Authorities, Commodity Boards, and Export Promotion Councils:
Export Promotion Councils:
Authority for the Export Development of Agricultural and Processed Food Products (APEDA)
Council for Export Promotion of Apparel (AEPC)
The Council for the Export Promotion of Basic Chemicals, Pharmaceuticals, and Cosmetics (CHEMEXCIL)
- Council for Export Promotion of Carpets (CEPC)
Export Promotion Council for Chemicals and Allied Products (CAPEXIL)
The Council for Exports of Leather (CLE)
Export Promotion Council for Computer Software and Electronics (ESC)
Council for Engineering Export Promotion (EEPC)
Indian Export Organizations Federation (FIEO)
Council for the Export Promotion of Jewels and Gems (GJEPC)
Council for Handloom Export Promotion (HEPC)
Export Corporation of Handicrafts & Handlooms of India (HHEC)
Council for the Export Promotion of Indian Oilseeds and Produce (IOPEPC)
Indian Council for the Export of Silk (ISEPC)
Authority for the Development of Marine Products Exports (MPEDA)
The Indian Pharmaceuticals Export Promotion Council (PHARMEXCIL)
The Council for Export Promotion of India (PEPC)
Council for Services Export Promotion (SEPC)
Export Promotion Council for Shellac (SPEC)
Council for the Export Promotion of Sports Goods (SGEPC)
Export Promotion Council for Synthetic and Rayon Textiles (SRTEPC)
Indian Tea Board
Board on Tobacco
The WWEPC is the Wool and Woollens Export Promotion Council.
The Indian Coffee Board
The Export Promotion Council for Cotton Textiles (TEXPROCIL)
Commodity Boards
- Board Made of Coir
- Coffee Board
- Rubber Board
- Spices Board
- Tea Board of India
- Tobacco Board
Development Authorities
- India’s Electronics Industry Development (ELCID)
National Trade Information Center (NCTI)
The Federation of Indian Exporters Organization (FIEO) is where exporters can receive the RCMC if their export product is not covered by any Commodity Board or Export Promotion Council.
In the event that the exporter handles many items and the matter remains unresolved, FIEO may also provide RCMC.
The North Eastern States’ shellac & Forest items Export Promotion Council can provide the RCMC to exporters of multiple items (except from those under the management of APEDA, Spices Board, and Tea Board).
The RCMC may be issued by the Government of Jammu & Kashmir’s Director of Handicrafts to exporters of handicrafts and handloom goods.
Validity of RCMC
The RCMC is in effect for five years, ending on March 31st, beginning on the date of issuance on April 1st of the licensing year.
Documents Required for RCMC
A number of required documents must be included with the RCMC application form, including:
An IEC number that the regional licensing body has issued
A PAN (Permanent Account Number) issued by the appropriate authority
For corporate, institutional, private limited, or limited corporations, the Memorandum of Association (MOA)
A copy of the partnership deed that has been self-certified for both individuals and partnerships
The trust deed for corporations, institutions, or trusts
A document confirming the company’s new registered office from the Registrar of Companies
Provided by the company’s chartered accountant, certified information about the foreign exchange earnings for the last three years
If the name of the signing authority is not stated in the IEC, MOA, partnership deed, or trust deed of the company/firm/trust, a board resolution or power of attorney issued in support of the signing authority
A certificate of GST registration.
Types of Exporters/Importers Covered - RCMC
A variety of exporters and importers can use the online RCMC application process, including:
- Ordinary Membership: Businesses searching for a basic membership that are new to the export and import market might consider this level of membership.
- Associate Membership: Membership is available to organizations with a well-established business that have been involved in import and export commerce for a considerable amount of time. Compared to regular membership, associate membership costs more and is subject to a minor amount of GST.
- Premier Trading House (PTH) Membership: Companies who have made a major contribution to India’s international trade and hold a sizable portion of the country’s overall exports are eligible for membership.
- Star Export House (SEH) Membership: Companies who have consistently increased their export revenue and made sizable foreign exchange gains are eligible to join this group.
- Trading House (TH) Membership: Companies who operate import and export businesses and have a minimum yearly revenue of INR 100 crores are eligible to join.
Observance of the RCMC
Exporters who want to take part in several export-related government schemes and programs must comply with the Registration cum Membership Certificate (RCMC). The following are some significant RCMC compliance requirements:
- Renewing the RCMC: It is necessary to renew the RCMC after its five-year expiration date. Noncompliance may occur from neglecting to renew the RCMC.
- Respect for the Export-Import Agreement: Exporters are required to abide by the DGFT’s export-import policy guidelines and requirements pertaining to the RCMC.
- Annual Export Data Submission: Exporters are obliged to provide the DGFT with their annual export data. Should this not be accomplished, the RCMC may be canceled or suspended.
- Respect for Customs Regulations: Exporters are required to abide by the rules and processes set forth by customs while exporting products. Legal action and penalties may follow noncompliance.
- Respect for International Trade Regulations: Exporters are required to abide by a number of foreign trade laws pertaining to the export of goods, including export control laws, sanctions, and embargoes.
- Respect for the Quality Standards: When exporting goods, exporters have to abide by the quality requirements set forth by the importing nation.
- Upkeep of Records: Exporters are required to adhere to the DGFT’s record-keeping regulations and preserve documentation pertaining to their export transactions.
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