RCMC stands for Registration-Cum-Membership Certificate. It is issued by Export Promotion Councils (EPCs) or Commodity Boards in India to exporters and manufacturers to certify their registration and membership with these bodies. This certificate facilitates availing benefits under various foreign trade policies and schemes.
What is Registration-Cum-Membership Certificate (RCMC)?
A Registration-Cum-Membership Certificate (RCMC) is an essential document that validates an exporter engaged with products that fall under the purview of an agency or organisation authorised by the Indian Government. This certificate, issued by Export Promotion Councils (EPCs), Commodity Boards, Development Authorities, or other competent bodies, serves as proof of registration for a period of five financial years.
To obtain an RCMC, exporters must declare their primary business focus in their application, which is then submitted to the relevant registering authority. India has a total of 26 Export Promotion Councils and 9 Commodity Boards responsible for issuing the RCMC. These bodies are authorised by the Central Government and issue certificates based on the specific category of the products handled by the exporter.
The RCMC is considered valid from the 1st of April in the year it is issued and remains effective for five financial years, concluding on the 31st of March of the final year, unless otherwise noted. This ensures that exporters are officially recognised and compliant within their respective industries.
Why RCMC registration?
- Avail export incentives: Eligibility for schemes like Duty Drawback, MEIS (Merchandise Exports from India Scheme), etc.
- Participation in trade fairs: Required for participating in international trade exhibitions and fairs.
- Access to export credit: Facilitates obtaining export finance and credit facilities from financial institutions.
- Government recognition: Enhances credibility and recognition as a registered exporter.
RCMC registering authorities
- Export promotion councils (EPCs): Authorized bodies under DGFT responsible for RCMC issuance.
- Commodity boards: Also issue RCMCs for specific commodity-based exports.
- Regional authorities: Some RCMCs are issued by regional offices of DGFT based on location-specific export activities.
- Online application portals: Provide platforms for exporters to apply and manage RCMC registrations efficiently.
- Documentation centres: Support exporters in preparing required documents for RCMC application and verification processes.
Export promotion councils
- Sector-specific focus: Each EPC specializes in promoting exports from specific industries or sectors.
- Policy advocacy: Represents exporter interests and advocates for favourable trade policies.
- Training and seminars: Organizes workshops and training programs to enhance export capabilities.
- Export facilitation: Provides market intelligence and export-related information to members.
- Certification and recognition: Issues RCMCs to validate exporter registration and membership.
Eligibility for RCMC registration online
- Exporter status: Must be a manufacturer exporter or merchant exporter.
- Membership with EPCs: Membership with relevant Export Promotion Councils or Commodity Boards.
- Document requirements: Aadhaar card, PAN card, and business address proof.
- Application process: Submit an online application with necessary documents to the concerned EPC or Commodity Board.
Documents required for RCMC
- You need a Memorandum of Association (MoA), which is a legal document defining company objectives and powers.
- You also need a Partnership Deed in case of partnership firms, outlining roles, responsibilities, and profit sharing.
- GST Registration Certificate is also required as proof of goods and services tax registration for tax compliance.
- PAN Card: Permanent Account Number for income tax purposes.
- Address proof: Such as utility bills, lease agreements, or property documents.
- Bank certificate: Verifying details of the exporter's bank account.
- IEC certificate: Import Export Code issued by DGFT.
- Identity proof: Aadhaar card, passport, or voter ID of the authorized signatory.
Types of exporters/importers covered - RCMC
The RCMC application process offers different types of membership for exporters and importers, each tailored to specific business needs:
Ordinary Membership: This membership is ideal for businesses that are new to the export and import industry. It provides basic membership benefits suitable for companies looking to establish themselves in the market.
Associate Membership: Designed for businesses that have been involved in export and import for a longer duration and have an established track record. The fee for this membership is slightly higher and includes GST.
Premier Trading House (PTH) Membership: This membership is reserved for companies that play a significant role in India's exports. These companies contribute substantially to international trade and have a large market share.
Star Export House (SEH) Membership: Companies that have demonstrated consistent export growth and earned significant foreign exchange can apply for this membership. It is tailored for businesses with a proven track record in international markets.
Trading House (TH) Membership: Meant for companies with an annual turnover of at least INR 100 crores, this membership is suited for businesses engaged in large-scale import and export activities. It acknowledges their substantial role in global trade.
These memberships provide exporters and importers with a range of benefits, helping them grow and establish their presence in international markets.
RCMC registration procedure: DGFT common digital platform for filing of RCMC
- Online application: Register and log in to DGFT's digital platform.
- Document submission: Upload required documents like PAN, MoA, and address proof.
- Payment: Pay applicable fees online through secure payment gateways.
- Verification: DGFT verifies documents and details submitted.
- RCMC issuance: Upon approval, RCMC is issued digitally, and accessible via the DGFT portal.
Benefits of RCMC
Obtaining a Registration Cum Membership Certificate (RCMC) provides exporters with several advantages:
- Eligibility for export promotion schemes: RCMC is necessary to access various export promotion schemes and benefits, including Duty Drawback, the Merchandise Export from India Scheme (MEIS), and the Market Access Initiative (MAI).
- Streamlined import and export: The certificate simplifies the import and export of restricted goods by validating the exporter’s and products' authenticity.
- Simplified customs clearance: RCMC helps reduce the time and effort required for customs clearance by demonstrating the exporter's membership with a recognised authority and adherence to government regulations.
- Increased credibility: Having an RCMC boosts the exporter’s credibility as it confirms compliance with government standards and regulations.
- Access to market insights: The certificate provides access to valuable market information and updates through export promotion activities and programmes organised by Export Promotion Councils and Commodity Boards.
Validity of RCMC
- Initial validity: Usually valid for 5 years from the date of issue.
- Renewal: Can be renewed upon application to continue enjoying export benefits.
- Modification: Allows updates to information such as changes in business activities or addresses.
- Cancellation: Can be cancelled by the issuing authority for non-compliance with export regulations.
- Continuous compliance: Requires exporters to maintain compliance with export promotion policies and regulations to retain validity.
Exporter or merchandiser (merchant)
An exporter engages in the shipment and sale of goods or services from one country to another, handling the logistics and regulatory aspects of international trade. They require an Import Export Code (IEC) issued by the Directorate General of Foreign Trade (DGFT) to facilitate exports. A merchandiser, also known as a merchant exporter, purchases goods from domestic manufacturers and sells them overseas. Both roles play pivotal roles in global trade, requiring adherence to trade regulations and documentation processes.
Business main line declaration
The business main line declaration is a statement provided by an exporter or manufacturer detailing their primary line of business activities. This declaration is crucial for obtaining various certifications and registrations, including the Registration-Cum-Membership Certificate (RCMC). It ensures alignment with the core business operations stated, facilitating clarity and compliance in trade documentation and regulatory filings.
Consent from the board of the FIEO
Obtaining consent from the Board of the Federation of Indian Export Organizations (FIEO) is essential for exporters seeking RCMC registration. The FIEO board's approval confirms the applicant's membership and compliance with export promotion policies and procedures. It underscores the exporter's commitment to adhering to ethical practices and regulatory requirements in international trade, ensuring credibility and recognition in the global marketplace.
Compliance with RCMC
- Regular renewal: Ensure RCMC remains valid by renewing it before expiry.
- Document maintenance: Keep all necessary documents updated and accessible.
- Export promotion council membership: Maintain membership with relevant EPCs or Commodity Boards.
- Compliance with export regulations: Adhere to export laws, policies, and reporting requirements.
- Respond to authorities: Cooperate with DGFT and other authorities for audits and inquiries.
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Conclusion
Securing an RCMC is essential for Indian exporters to leverage export incentives and participate in international trade. Maintaining compliance with RCMC requirements ensures sustained eligibility for export benefits and regulatory adherence in global trade operations.
