If you want to export spices but are unsure of whether RCMC is needed or not, then here is your answer. Read on to learn more!
RCMC for spice export in India is crucial. Indian spices are one of the top products whose demand is rapidly increasing in international markets. They are well known for their flavor and texture. To promote spice exports, the Spices Board of India was created. The spice board promotes the export of more than 50 classified spices as an autonomous body. All manufacturers and sellers must register with the Spices Board of India to export spices from India.
A CRES (Certificate of Registration as Export of Spices) is provided to spice exporters after successful registration, which is similar to an RCMC for spices. To export spices, this document is mandatory.
Spices Board of India
One of its main responsibilities is to promote the export of spices. The Board often had discussions with the government and exporters to work out trade concerns and implement new policies and programs.
Promotion Of Spice Export
- Through quality evaluation, technology advancement, economic and scientific research, and brand building.
- Spices are subject to quality monitoring and certification to guarantee they adhere to global quality standards.
- First, register spice exporters as members and then help them with the necessary paperwork. Apart from this, the Spices board also provides them with updates on trade-related policies
- Working together with the government to exchange information on the policies & reforms that address the exporters’ trade-related concerns
- By making International trade laws, quality management systems, and efficient packaging methods familiar to importers and exporters
- Analyzing grievances brought up by importers and exporters and recommending preventive measures
- Participation and related assistance for exporters at world fairs and food festivals.
We all know that spices belong to the group of basic commodities. Kitchens also need this important culinary ingredient. The Board serves as a link between worldwide importers and Indian exporters. Every sector of this industry has been involved in the initiatives the Board is leading to promote the export of Indian spices.
Why Do You Need To Register With The Spices Board Of India?
Manufacturers and sellers must register with the Indian Species Board. According to Section 11 of the Spices Board Act of 1986, no person or legal entity can start or engage in the business of exporting any spice from India without registration. Not getting the registration done may result in penalties-
- Confiscation of the stock
- Imprisonment for up to a year.
- Fine up to ₹1,000
One of the most essential requirements for beginning a spice export business is, therefore, Spice Board Registration. Businesses that export spices from India need to get a Certificate of Registration as an Exporter of Spices.
CRESs with a three-year validity are offered by the Spice Board of India. But the majority of export promotion councils in India offer Registration Cum Membership Certificate (RCMC) for exports. The exporter must renew the certificate every three years.
How To Register?
The Spices Board of India now accepts CRES applications online. Here is a list of all the necessary documents required:
- IEC issued by a DGFT
- Bank information for the exporter as specified in the application form
- A certificate from the tax authorities stating that you have paid sales tax, VAT, or CST.
- PAN
- Passport-size color photos of the exporter or business owner
Once you have the above documents, you can submit a CRES application. The license can be issued within a week of receiving the application and required paperwork at the office of the relevant board.
The original license will be sent through registered expedited mail. In an emergency, a copy can be sent or emailed to the exporter. You have two months before the certificate’s validity expires to submit a renewal application. Every exporter that deals with the export of spices is required to acquire a certificate of registration with the spice board.
Eligibility Criteria For Spice Board Registration
To register as a spice exporter in India, you must meet the following requirements:
- Your ID and address proof must be legitimate
- You must be an Indian-based corporation
- The partners/directors of your firm entity should be free of any criminal histories.
Benefits of Spice Board Registration for Exporters
Obtaining a Spice Board registration has the following advantages:
- Registration with the Spice Board makes it easier for exporters and importers to communicate with one another
- It also processes international trade inquiries and sends them to reliable exporters. It helps in the identification of qualified suppliers
- The Spice Board is also in charge of maintaining a database of all importers and exporters nationally.
Is An RCMC Certificate Necessary For Exporting Spices?
Simply put, No. With effect from 1 April 2008, the Spices Board’s Certificate of Registration as Exporter of Spices (CRES) is treated as an RCMC Certificate.
The Director General of Foreign Trade simplified this procedure in the Annual Supplement 2008 to the Foreign Trade Policy 2004-09, which went into force on January 1, 2008. “Certificate of Registration as Exporter of Spices” issued by the Spices Board shall be treated as a Registration-Cum-Membership Certificate for purposes of this policy.
Because of the above simplification, spice exporters who have registered and have the CRES are no longer required to apply RCMC. In instances where RCMC for spices export is needed, CRES can be submitted.
Conclusion
Hopefully, after reading the above post, it is clear that exporters of spices do not necessarily need an RCMC certificate. In the Annual Supplement 2008 to the Foreign Trade Policy 2004-09 which became effective on April 1, 2008, The DGFT announced that the certificate RCMC for spices export is no longer necessary for the spice business.
However, if you want to apply for an RCMC certificate, our expert team at Vakilsearch can help you with an end-to-end registration process and get your RCMC registration done within 30 working days (subject to government approval).
