India is home to thousands of export businesses. In this blog, we will learn about the benefits of RCMC certificate advantages and its necessity for an exporter.
RCMC certificate verifies that an exporter is exporting goods from India and has registered with a certain Export Promotion Council (EPC). These certificates are issued by the Indian commodity councils or EPC and are valid for five years. RCMC certificate in Export aids the government in maintaining control.
The applicant must specify the primary line of product or business while applying. It helps them receive the certificate immediately without any issues or delays. An export promotion that works with the main business or product will receive this application. A Registration-Cum-Membership-Certificate is necessary for being a part of the EPCs.
Export Promotion Councils
The Government has established the Export Promotion Councils to help exporters grow their businesses in foreign markets. A council’s main duty is to support exporters in the industry. It regulates and advertises the product category it works with. This broadens their prospects and influences the economy’s export performance. The primary objectives of EPC are;
- Give council members information to help them grow their enterprises in international markets. The council also informs exporters about government initiatives and other advantages
- Gathering data on exports and imports and other information required for international trade
- Setting up trade missions to investigate all potential export and trade opportunities
- To boost export business, trade fairs, exhibitions, and conferences
- Facilitating contact between the government and the exporter community
- Helping exporters comprehend and interpret export regulations and support programs
- Advising members on numerous topics. It includes the use of the GSP, export financing, and product insurance
- Gathering and providing market data to help exporters in maximizing export possibilities
- Giving certificates of origin for the provenance of goods to Indian exporters.
Why Is The Export Promotion Council Needed?
EPCs help the exporter get benefits and concessions under foreign trade policy. Some of the most common export incentive schemes are:
- RoDTEP: This scheme is known as the Remission of Duty or Taxes on Export Products. It reimburses exporters for central and state taxes and tariffs
- Service Exports from India Scheme (SEIS): This scheme provides many incentives to exporters. It ranges from 3% to 7% of the total amount of foreign exchange they export
- Duty Drawback (DBK): This scheme reimburses exporters for excise taxes and central taxes paid on imports.
The government offers incentives in the form of subsidies that lower export prices. These incentives can take the form of low-cost loans, tax, and duty breaks. or even subsidies that reduce export costs. The MoSPI reports that India was the world’s 18th-largest exporter in 2019. Yet, only 1.72% of Indian exports were included in the world market that year. This tragic figure clarifies why export development is necessary for India.
Each nation has an organization dedicated to promoting exports. About 37 organisations in India provide services to exporters of various product categories. This categorization improves the emphasis on product promotion. Also, it enables EPCs to help exporters more effectively.
In India, the Federation of India Export Organizations (FIEO) was created for this purpose in 1965. It acts as a vital link between the Indian trading community, government, financial institutions, ports, and railways. It further connects to other surface transportation modes to help export trade. An RCMC is necessary to receive all the benefits of The Foreign Trade Policy.
Advantages of RCMC Certificate
Policy on Foreign Trade
The advantages of the foreign trade policy (FTP) will be available to anyone registered on RCMC in export. Additionally, the RCMC-registered exporters have access to frequent updates on international trade policy.
Utilizing Various Schemes
The registered export firm or company can use many of FIEO’s schemes. However, an unregistered corporation or exporter cannot take advantage of these perks.
Observance of Government
The exporting company, firm, or individual registered will be in observance of the laws.
FIEO Updates And News
The registered firms will have access to the daily updates on the foreign trade policy and enjoy different benefits from the FIEO. Individual exporter registration is still available for those who want to enjoy FEIO but do not yet have a registration. These are all the advantages of getting an RCMC.
Is RCMC Certificate Useful In India’s Efforts To Promote Exports?
The promotion of exports is important in India. Promoting different exports to develop the country’s varied industries is important. Obtaining this RCMC will automatically improve international export.
Maintaining Quality
The RCMC ensures a reliable supply of goods and services in high market demand. RCMC in export helps in promoting India as a reliable source of goods and services sought after in global markets.
Encouraging Exporter
One of the key benefits of RCMC registration is the capacity to guarantee the international expansion of the nation’s export. For example, the Indian government has launched the Atma Nirbhar Bharat program. They believed that Indians should buy more goods manufactured in India. Self-sufficiency can be accomplished with the use of such benefit plans. This program will also increase Indian exports.
Applying with EPCs
Exporters must complete the application form, accessed from the official EPC websites, to get RCMC in export from any of the EPCs. It must be submitted with the following paperwork:
- A self-certified copy of the IEC Number provided by the relevant licensing body
- A non-judicial stamp paper undertaking that has been properly notarised
- A self-attested copy of the company’s memorandum and articles of incorporation
- A partnership agreement, firm registration certificate, or other relevant documents.
Here are docs that must be submitted if the exporter wishes to be registered as a Manufacturer Exporter. A self-attested copy of the exporter’s Employee State Insurance Certificate
- Letter of Intent
- Industrial License
- Factory License
- Employees Provident Fund Registration Certificate
- Employee State Insurance Certificate
You can provide any additional documentation demonstrating your status as an exporter. You can deliver it on paper without a judicial stamp stating that you are an exporter. These are all the documents you need to submit to get an RCMC license.
Conclusion
The Government of India created Export Promotion Councils to help Indian exporters grow their businesses in foreign markets. An exporter can join any of the Export Promotion Councils (EPCs), after which the EPC will grant them an RCMC. The applicant needs to provide all the documents as specified by the EPC to register as a manufacturer or exporter.
RCMC in export is very important since, without it, exporters cannot take advantage of the incentive schemes stated in the Foreign Trade Policy. If you are also looking to start export promotion activities in India, our expert business advisors at Vakilsearch can provide you with the most seamless and hassle-free RCMC registration process.
Also, Read:
