Don't know how to get an RCMC for Tobacco export yet? Here, you will find detailed information about the registration of tobacco licenses in India.
RCMC for tobacco is required for conducting tobacco business in India. Despite the risks to public health, India’s tobacco business is expanding rapidly due to its economic importance. Tobacco is primarily a plant that is grown in the climate of South Indian regions especially, Karnataka and Andhra Pradesh.
The industry has witnessed significant growth over the past few decades and is expected to continue growing. The FAO statistics show that there has been a 1.9% increase in tobacco users worldwide. Additionally, according to sources, there are almost 200 million tobacco users in India, of which 25 million are habituated to cigarettes.
What is the Tobacco Board of India?
The tobacco board of India helps all of the exporters, traders, and farmers of tobacco. On January 1st, 1976, the Tobacco Board was established as a statutory body in accordance with Section 4 of the Tobacco Board Act, 1975. The Board is in charge of the advancement of the tobacco industry and is presided over by a Chairman with its headquarters in Guntur, Andhra Pradesh.
Although the Board’s primary duty is to promote the export of all tobacco varieties and related goods, it also has additional responsibilities for the production, distribution, and control of Flue Cured Virginia (FCV) tobacco for both domestic and international markets.
The following are some of the export promotion activities the Tobacco Board participates in:
- Participation in exclusive international trade fairs, symposiums, and exhibitions focusing on tobacco.
- Promotion of Indian tobacco through ad campaigns in foreign media.
- Distributing information to exporters and responding to their numerous inquiries from international clients.
- Offering Trade and Industry recommendatory, advising, and other support services.
- Resolving issues with importers and exporters with the help of government agencies and organisations like the RBI and Customs.
- Provide the Central Government with input on issues of policy regarding the export of tobacco and tobacco products.
Tobacco Board Of India Registration
There are two types of registration for the export of tobacco. Also, RCMC for Tobacco export is mandatory for the tobacco business.
- Tobacco Product Exporter (for example Tobacco Essence and extracts)
- Exporter of Tobacco (Unmanufactured Tobacco)
To become an Exporter of Tobacco (Unmanufactured Tobacco), you must submit the documents listed below.
- Recent Bank certificates against the banker’s current account for the applicants in the format required by the regulations.
- Letter of Undertaking in the Prescribed Proforma, on Company Letterhead.
- If the business is a partnership, private limited company, or public limited company – a copy of the memorandum of articles of association and the full addresses of the partners and directors.
- GST certificate copy.
- PAN Card Copy
- A copy of the IEC certificate (Importer Exporter Code)
- The information on godowns, warehouses, and handling points (including branches) in the relevant column of the application. The information must be provided in the manner described below by those requesting registration or renewal.
- Location (Complete address and phone number)
- Measurements of each warehouse.
- Renting or Ownership proof
- When applying for a lease, the owner’s complete address and a self-attested copy of the lease agreement on a ₹100 non-judicial stamp paper must be included.
RCMC for Tobacco Export
Those who wish to apply for RCMC for Tobacco export should be listed as exporters in the appropriate category by the Tobacco Board. For application, the following paperwork is required:
- If you desire to apply as a “Manufacturer Exporter,” self-certified copies of documentation proving your status as an exporter are required.
- Prior RCMC certificate that was self-certified (in the event of renewal or amendment).
A merchant exporter or manufacturer exporter registration is given. If the exporter wants to register as a manufacturer exporter, he must provide documentation of the company’s manufacturing operations along with the application.
Beginning on April 1 of the licensing year in which the license was issued, registration is granted for five years. If an exporter’s ownership, organisational structure, name, or address changes, the RCMC holder must notify the Registering Authority of the change within one month of the effective date of the change. The necessary paperwork for registering for a tobacco license is.
- Bank Certificate
- Letter of Undertaking
- If the company is a partnership, private limited company, or public limited company, a copy of the memorandum of articles of association and the complete addresses of the partners and directors
- PAN Card copy
- Udhyami Registration under Factory Act 1948 or Registration under Shop and establishment act
- Copy of Central Excise registration Certificate for the manufacture of Excisable goods
- Copy of the Latest Municipal/Corporation tax paid receipt about Factory or unit premises
- Copy of GST Certificate
- Permission letter copy issued by RBI/Concerned Authorities of Govt. of India
GSP Certification
The Tobacco Board is permitted to issue the Certificate of Origin under the Generalized System of Preferences (GSP) Regime of the European Union.
How Does The Tobacco Board Help Exporters With RCMC?
With the help of RCMC, tobacco exporters can benefit from a variety of schemes, such as tobacco and tobacco-related exports, no tariffs or cesses are payable. The Tobacco Board Cess and the AP Cess, which were levied on tobacco exports, have been abolished by the Indian government.
Focus Product Scheme
Unmanufactured tobacco exports are eligible for incentives of 2% of FOB under FPS for all exports.
Agri-Infrastructure Incentive Scrip (AIIS):
All Status Holders (having status recognition for the current year) who export goods covered by ITC HS Chapters 1 to 24 will be provided with duty credit scrip equal to 10% of the FOB value of agricultural exports on condition that the combined benefits for all Status Holders do not exceed ₹100 Cr (i.e. ₹50 Cr. for each half year) and the exports are made during the year.
Duty Drawback
Duty drawback is also provided under the registration of the tobacco board of India.
Market Access Initiative and Market Development Assistance
The government offers financial support for export promotion initiatives carried out by trade promotion organisations and export promotion councils under annual action plans. All these benefits are provided under the registration of the tobacco board of India.
Conclusion
With the help of RCMC, the tobacco board of India helps exporters in ensuring that the product is sold at fair prices. RCMC for tobacco export helps the board to monitor the supply and demand of the tobacco industry. It also helps tobacco farmers in securing financial help to grow tobacco, and afford premium seeds, biofertilizers, and other essentials. Also, it helps them get GAP assistance, to enable them to produce high-quality tobacco. Getting assistance from experienced business advisors at Vakilsearch can help you save your time and efforts and get your RCMC for tobacco export without any hassle.
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