The RCMC Certificate is abbreviated as RCMC. In this blog, you will learn all about who issues the same.
Introduction
An RCMC is a certificate that verifies that an exporter is dealing with products that have been registered with an Indian government-approved agency or organisation. This blog answers your question “How Are RCMC Certificates Issued in India”, in detail.
The Registration Cum Membership Certificate (RCMC) is a certificate issued by the Directorate General of Foreign Trade (DGFT) to exporters who are members of an Export Promotion Council (EPC) or Commodity Board. The RCMC is valid for five financial years and provides a number of benefits to exporters, including:
- Reduced documentation requirements for exports
- Access to government schemes and incentives
- Eligibility for export promotion services
Under Which Export Promotion Council (Epc)/ Commodity Board the Exporter Has to Register? – h2
The exporter has to register under the EPC or Commodity Board that is responsible for the product that they are exporting. For example, if an exporter is exporting textiles, they would register under the EPC for Textiles and Clothing.
How to Apply
To apply for an RCMC, the exporter must submit an application to the relevant EPC or Commodity Board. The application must include the following information:
- The exporter’s name and address
- The exporter’s IEC number
- The products that the exporter will be exporting
- The exporter’s annual export turnove
Compliance Under RCMC
Once an exporter has been granted an RCMC, they are required to comply with a number of conditions, including:
- The exporter must export a minimum amount of goods each year
- The exporter must maintain proper records of their exports
- The exporter must submit annual returns to the EPC or Commodity Board
Intimation of Change in Constitution of Business of Rcmc Holder
If there is any change in the constitution of the business of an RCMC holder, such as a change in the name of the company, the address of the company, or the composition of the board of directors, the RCMC holder must inform the relevant EPC or Commodity Board within 30 days of the change.
Penalty for Violation
If an exporter violates the conditions of their RCMC, they may be subject to a penalty. The penalty may be a fine, suspension of the RCMC, or cancellation of the RCMC.
In India, Who Needs RCMC?
According to the international trade policy, RCMC is applicable to two types of people. Anyone applying for a licence to import or export restricted commodities, or any other licence under import or export, must first register with the RCMC. Anyone who wishes to claim a benefit under an export scheme must first register with the RCMC.
Unless specifically exempted under the Policy, any person applying for any other benefit or concession under this policy must provide a Registration-cum-Membership Certificate (RCMC) granted by the competent authority in accordance with the procedure specified in the Handbook (Vol. 1).
Organizations Eligible to Participate in RCMC
- Company (Public, Private, or OPC)
- Sole Proprietorship
- Chambers of Commerce
- LLP
- Any trust, organization, or establishment
Purpose of RCMC
You must apply for an RCMC certificate if you are an exporter. Obtaining approval to export (or import) any products that are prohibited Getting ready to receive various benefits under the foreign trade strategy benefits from customs and central excise.
Even if you’re planning to export two or more things that fall into different categories and, as a result, have different EPCs, an RCMC is required. Exporting goods and products around the world is a challenging business, and the Indian government has a number of incentive programmes in place to assist exporters with profitability, cash flow, and production difficulties.
Who is Responsible for Issuing the RCMC?
Exporters must get RCMC from the concerned Export Promotion Councils/FIEO/Commodity Boards/Authorities in order to obtain authorisation to import or export or any other benefit or concession under the Foreign Trade Policy. The RCMC is valid for 5 years and requires an annual subscription. However, this varies from municipality to municipality. RCMC is also to be used according to the line of business. For example, if you sell coconut products, you must register with the Coconut Development Board.
The Department of Commerce now has fourteen export promotion councils. The Companies Act/Societies Registration Act classifies these councils as non-profit organisations.
How Are RCMC Certificates Issued in India: Documents Required
- The IEC number is issued against the applying export entity.
- PAN card
- articles and memorandum of association (for corporate/institutional/private limited/limited company), partnership deed (in the case of partnership firms and LLPs), or trust deed (in the case of trusts)
- In the case of a company, the certificate issued by the Registrar of Companies regarding registered office change is needed.
- The GST registration certificate
- Proof of payment of the membership fee to the Services Export Promotion Council also has to be provided.
- In the case of a service exporter already in business, three years’ worth of service export data certified by the exporter’s chartered accountant has to be provided.
- In the event that the name of the signing authority does not appear in the IEC/MOA/partnership deed/trust deed, etc., a self-certified copy of the board resolution or power of attorney issued in favour of the signing authority has to be provided.
What Is the Procedure for Applying for an RCMC?
To apply for an RCMC certificate, you must complete and submit an application form ANF 2C to the EPC, which is available on the official website of the Directorate of Foreign Trade.
- Exporters are divided into two groups: merchants and producers.
- To register as a manufacturing exporter, you must submit proof of your current manufacturing plant.
- Your application must be addressed to the correct EPC, and you must include your company’s name, registration address, branch, and manufacturing address (if applicable).
- You must supply your IEC code, as well as information about your manufacturing unit, such as an industrial licence, a factory registration, and so on.
- You’ll also need your export status holder certificate number, as well as the certificate numbers for your export house, trading house, star trading house, and super star trading house.
- The product(s) for which registration is required, as well as your major business line, must be specified.
Consult the amended Annexure 2T of the Directorate of Foreign Trade to determine which EPC/Commodity Board/Authority your product belongs to. It comprises a list of EPCs/boards/authorities, their contact information, and a list of products that fall within their authority. There are now 37 export promotion councils in operation.
It’s possible, though, that the product you intend to export may not yet have an EPC issued to it. In this case, you must apply directly to FIEO. If you have many goods or are unsure about your line of business, FIEO can issue the RCMC under its multi-product group category.
We hope that this blog answered your question, How Are RCMC Certificates Issued in India”. For further legal assistance, contact Vakilsearch.
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