The EPC is an Indian government agency that assists in the promotion of export goods and services. The organisation accomplishes this through hosting trade events, promoting exports, and acting as a liaison between traders and the government. The Registration or Membership Certificate is a document that assists exporters in becoming EPC members.
The Registration or Membership Certificate is a document that assists exporters in becoming EPC members. As per para; 4.10 of the Export-Import policy, any firm or company applying for any import or export license and/or avail of any other concession or benefit, is required to have a Registration cum Membership Certificate (RCMC) issued by a competent authority unless specifically exempted under the policy.
Any person applying for (i) a license/certificate/permission to or (ii) any other benefit or concession under Foreign Trade Policy shall be required to furnish Registration-cum-Membership Certificate (RCMC) issued by the competent authority in accordance with the procedure specified in the Handbook of Procedures (Vol. I) unless specifically exempted under the Policy.
There are currently 26 Export Councils and 9 commodity boards in operation across India. Export Promotional Councils are government-run organizations that have sole jurisdiction to issue RCMC certificates to exporters. Every export council divides itself into categories based on the products it promotes. RCMC can be obtained from FIEO by exporters of products that are not covered by these councils.
Is RCMC a Mandatory Requirement for Exporting Goods?
The RCMC is issued by the Federation of Indian export organisations or an export council to exporters who wish to join the Council. It primarily assists exporters in obtaining benefits from agencies that aid in the promotion and development of India’s export industry.
The certificate is valid for five years and shows that the company is registered with the EPC or FIEO. It is not, however, a mandatory requirement for exporting goods from India. Obtaining the RCMC license, on the other hand, provides organisations with a number of perks and advantages, making it an essential document.
Further, it is a mandatory requirement in case you are availing one of those licenses/benefits that are covered by foreign trade policy.
Consequences of Not Obtaining an RCMC Certificate
Although its possible to exports but you can not get quality certificate from government agencies like APEDA and by the very virtue of its policy, not having RCMC debars you from availing a no. of government benefits, lisences, concessions, etc.
List of Benefits Accessible to RCMC Certificate Holders
Registration cum Membership Certificate (RCMC) holders are eligible for the following perks, which help them stay competitive and carry out EXIM activities more easily:
- The Advance Authorisation Scheme (AAS) is a government programme established under the Foreign Trade Policy 2015-2020 to ensure that raw materials imported into India for the production of exportable goods pay no import duty.
- The duty drawback scheme allows exporters to get a refund on customs duties paid on imported items.
- The RODTEP Scheme (Remission of Duties and Taxes on Export Products) intends to recoup refunds on embedded taxes and duties paid to the appropriate authorities. This scheme has been launched by the government to stimulate export activity across India.
- The Duty-Free Import Authorisation (DFIA) Scheme ensures duty-free import of inputs, gasoline, oil, and energy sources needed to produce exportable goods.
- Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre-production, production, and post-production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under the EPCG scheme, to be fulfilled in 6 years reckoned from Authorisation issue date.
How to Obtain an RCMC Certificate
First and foremost, applicants must get an export or import number in order to meet the IEC code requirement. They can seek an RCMC Certificate from the concerned EPC or FIEO office once they have the IEC code. To receive an RCMC license, the applicant must collect, properly fill out, and submit their application using Form ANF 2C. The registration fee for the same is INR 5,000, which can be paid with a crossed DD drawn in the EPC’s favour.
In addition, candidates must apply to the EPC Board that oversees the items they export. Businesses that export tea, for example, must apply to the Tea Board, whereas spice exporters must apply to the Spice Board. Additionally, depending on the nature of their firm, businesses can apply under one of two categories: merchant or manufacturer. Businesses will have to present further proof regarding their manufacturing facilities in order to register as a manufacturing exporter.
Applicants will need to provide the following details on the application form;
- Address to the concerned EPC
- Name, branch, factory and registered address of the business
- IEC Code and its details
- Manufacturing unit and product details
- Industrial license and factory registration number
- Export House or Trading House certificate number
- Export status holder certificate number
FAQs
Why is an RCMC (Registration Cum Membership Certificate) required for export activities?
An RCMC (Registration Cum Membership Certificate) is required for export activities to establish a firm's identity with export promotion councils and customs. It facilitates various export-related transactions and benefits like duty drawback and incentives.
Who is required to obtain an RCMC for their export business?
Exporters, including individuals, sole proprietors, partnership firms, companies, and corporations, are required to obtain an RCMC for their export business.
What distinguishes an IEC (Import Export Code) from an RCMC, and do exporters need both?
An IEC (Import Export Code) is mandatory for all exporters, while an RCMC is specific to certain sectors and provides additional benefits. Exporters usually need both as IEC enables export, and RCMC grants sector-specific benefits.
How does RCMC differ from an EPC (Export Promotion Council)?
An EPC (Export Promotion Council) is an organisation that promotes exports in specific sectors, while an RCMC is a certificate issued to identify an exporter. RCMC is necessary to avail of EPC benefits.
Is there a cost associated with obtaining an RCMC, and what factors may affect this cost?
The cost of obtaining an RCMC may vary depending on factors like the specific export promotion council, the type of goods being exported, and the number of years for which it is sought.
What constitutes proof of export under GST regulations, and why is it important?
Proof of export under GST regulations includes documents like a shipping bill, bill of lading, and a GST invoice with certain particulars. It is essential for claiming GST refunds and ensuring tax compliance.
Which registrations are mandatory for individuals or businesses engaged in exporting goods?
Mandatory registrations for exporters include an IEC, RCMC if applicable, and GST registration, along with any sector-specific registrations.
Is it mandatory to include an HSN (Harmonized System of Nomenclature) code in export documentation?
Yes, it is mandatory to include an HSN (Harmonised System of Nomenclature) code in export documentation, as it categorises goods for customs and helps in international trade.
How long is the RCMC certificate valid, and what is the process for its renewal?
The validity of an RCMC certificate can vary, usually between 1 to 5 years, depending on the export promotion council. The renewal process involves submitting the required documents and paying the renewal fee to the respective council.
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