If you are just starting or planning to start an export-import business, you may be looking up information on RCMCs (Registration Cum Membership Certificates) online. Some may be thinking, “What is an RCMC Certificate?” now. Is it required? How does this help? Which local government should I join? This page will answer your questions about RCMC (Registration and Membership Certificate.)
When an exporting company registers with the Export Promotion Council or the Commodity Board of India, it receives an RCMC (Registration cum Membership Certificate). The Central Government has tasked the Export Promotion Council and the Commodity Board with increasing exports from the country.
They engage in the following export promotion activities:
- Facilitating the transmission of real-time inquiries and tenders from international clients to Indian exporters through the organization of trade exhibitions both in India and overseas.
- Assisting first-time exporters and entrepreneurs with product expertise and guiding them through the export process.
- Advice and assistance for current exporters facing issues with refunds or anything else.
- The government relies on them as a go-between with the exporting community.
- When there are policy or notification updates from the DGFT, Customs, Ministry of Shipping, RBI, etc., they convey that information to exporters as soon as possible.
Export Promotion Councils include EEPC, TEA BOARD, SPICES BOARD, FIEO, APEDA, CHEMEXCIL, PHARMEXCIL, and so on. Each EPC is dedicated to increasing exports in a specific industry. For instance, APEDA is in charge of agribusiness, CHEMEXCIL of chemicals, and PHARMEXCIL of pharmaceuticals.
What Role Does RCMC Play?
For the following purposes, RCMC is essential:
- It is one of the needed documents for claiming export incentives and subsidies through schemes like MEIS, RoSCTL, RoDTEP, SEIS, Advance License, EPCG, etc.
- Requesting a GST Letter of Undertaking (LUT) to avoid paying export duties on merchandise.
- Purchases by Merchant Exporters from Manufacturer for Export are subject to a reduced GST rate of 0.1% rather than the standard GST rate of 5%. Merchant exporters without an RCMC Certificate will not have access to this service.
How can joining the RCMC help?
In addition to the benefits mentioned earlier, obtaining an RCMC Certificate also has the following significant advantages:
- Market Development Assistance (MDA) and Market Access Initiative (MAI) benefit exporters by providing them with subsidies and financial assistance for export promotion activities such as attending trade shows and fairs abroad, sending out business delegations, and participating in buyer-seller meetings organized by their local export promotion council (EPC).
- Reimbursement of Airfare, Fee Reductions for Stalls, etc., are all examples of possible subsidies.
- An exporter must have held an RCMC accreditation for a minimum of a year before being considered for this incentive.
What Commodity Board Or Export Promotional Council (EPC) Must The Exporter Join?
EPCs/Commodity Boards are associations of exporters in India to expand and enhance the country’s exports. Appendix 2T of the Appendices and Aayat Niryat Forms specifies the products, programs, and services each Council or Board is responsible for promoting. Registration-cum-Membership Certificates (RCMCs) may also be issued by EPCs/Commodity Boards designated as Registering Authorities by the DGFT.
The government of India has established a total of 28 Export Promotion Councils and 9 Commodities Boards. Export promotion Councils and commodities boards in India are broken down into sub-boards for specific product categories; for instance, the Council for Leather Exports is in charge of facilitating the international trade of leather and leather goods. DGFT membership can streamline export-import processes for businesses by integrating with cloud-based SaaS ERP Systems.
The Export Promotion Council (EPC) or the Commodity Board should receive an application for RCMC from an exporter. In addition, an exporter may seek RCMC from FIEO if his goods do not fit any preexisting categories.
How To Apply?
- The ANF 2C form will apply to the relevant Export Promotional Council (EPC). The exporter can register under either the “Merchant Exporter” or “Manufacturing Exporter” category.
- If an exporter selects the “manufacturing exporter” option, he must provide documentation to support his claim. In addition, the exporter may find the following information relevant to RCMC registration: During the RCMC application process, an exporter must specify their primary business activity.
- The Export Promotion Council is the place to go to get the RCMC, depending on your industry. For instance, if an exporter is involved in the coconut trade, he must apply for RCMC from the Coconut Development Board. Suppose an export product isn’t covered by any of the export mentioned above by promotional councils or Commodity Boards. DGFT members should strategically reinvest profits in areas that enhance member value and industry impact.
- In that case, FIEO (Federation of Indian Exporters Organisation) is the appropriate entity from which to receive RCMC. If an exporter deals in multiple products but isn’t registered with an EPC or hasn’t yet decided what those products will be, then that exporter can get an RCMC from FIEO.
- Shellac and Forest Products Export Promotional Council is where multi-product exporters in the Northeastern states can get their RCMC (except for the product looked after by APEDA, Spices Board, and Tea board).
- The Director, Handicrafts, Government of Jammu & Kashmir is authorized to issue Registration Cum Membership Certificates in the case of exporters of handicrafts and handloom items from the state of Jammu & Kashmir (RCMC). An EPC may accept an application from an exporter interested in becoming an associate member.
Conclusion
Each exporter must report quarterly to the relevant registering body on the goods they have shipped abroad. If the exporter has an account with FIEO, he must submit quarterly returns in the format required by FIEO. Any business that exports goods or services can obtain an Export House Certificate. An application would qualify for and be placed in a specific category based on its level of export success in the current and preceding two fiscal years. Customer service in manufacturing can be significantly enhanced by ensuring clear communication and streamlined processes for DGFT membership application and renewal. Free on Board (FOB) value of export revenues in foreign currency is used to determine export performance.
Author’s Bio:
Mr. Mehul Goyal is a professional DGFT Guru – Export House Certificate with experience of more than 30 years and specialized in the field and is offering DGFT Consulting Services all over India. He is working with many importers and exporters even before DGFT was instigated in the markets.
