Registration Cum Membership Certificate (RCMC) for Indian Exporters

Registration-Cum-Membership Certificate (RCMC) is necessary for the import and export of restricted goods. As an Indian exporter, it is a must to obtain it. It serves as proof that your registration with the Export Promotion Council (EPC) or Commodity Board is in line with your product category. 

There is a clearly defined procedure for obtaining the certificate. You can apply for it offline as well as online. However, before proceeding with the application, it is important to understand its eligibility criteria, significance, necessary documentation, and registration requirements. This article covers all this and various other aspects of RCMC. Read on to find out!

What is Registration Cum Membership Certificate (RCMC)?

RCMC is a trade document necessary for the import and export of restricted products as per the Foreign Trade Policy (FTP). It is issued by designated authorities such as Export Promotion Councils (EPCs), Export Development Authorities, and Commodity Boards. 

The objective behind issuing this document is to facilitate the growth of exports. It shows that the exporter is registered with an organisation or agency authorised by the Indian Government. It gives exporters access to various government benefits and support services. RCMC holders have the authority to apply for licenses to import and export restricted goods.

Significance of RCMC

Here is why it is important to obtain RCMC:

• It proves that an exporter is registered with a particular Export Promotion Council, Export Development Authority, or Commodity Board.
• It gives the exporters the right to import and export goods that are restricted as per the Foreign Trade Policy.
• With this, the exporters become eligible for concessions on the import and export of restricted goods under FTP.

Export Promotional Councils Offering RCMC

The Export Promotional Councils offering RCMC include the following:

1. Agricultural and Processed Food Products Export Development Authority (APEDA)
2. Gems and Jewellery Export Promotion Council (GJEPC)
3. Indian Silk Export Promotion Council (ISEPC)
4. Apparel Export Promotion Council (AEPC)
5. Wool and Woollens Export Promotion Council (WWEPC)
6. Council for Leather Exports (CLE)
7. Marine Products Export Development Authority (MPEDA)
8. Shellac Export Promotion Council (SPEC)
9. The Coffee Board of India
10. Handicrafts and Handlooms Export Corporation of India (HHEC)
11. Plastics Export Promotion Council (PLEXCONCIL)
12. Electronics and Computer Software Export Promotion Council (ESC)
13. Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL)
14. Sports Goods Export Promotion Council (SGEPC)
15. Carpet Export Promotion Council (CEPC)
16. The Cotton Textiles Export Promotion Council (TEXPROCIL)
17. Services Export Promotion Council (SEPC)
18. Pharmaceuticals Export Promotion Council of India (PHARMEXCIL)
19. Chemicals and Allied Products Export Promotion Council (CAPEXIL)
20. Engineering Export Promotion Council (EEPC)
21. Tobacco Board
22. Handloom Export Promotion Council (HEPC)
23. Synthetic and Rayon Textiles Export Promotion Council (SRTEPC)
24. Tea Board of India
25. Federation of Indian Export Organisations (FIEO)
26. Indian Oilseeds and Produce Export Promotion Council (IOPEPC)
27. Project Exports Promotion Council of India (PEPC)

RCMC Registration: A Comprehensive Overview

Following the correct RCMC registration procedure is necessary to obtain the certificate. The registration procedure is simple and well-defined. You can visit your nearest EPC office, fill out the registration form, and submit it along with relevant documents to register. 

The registration procedure has been made easier with e-RCMC, which was introduced by the Directorate General of Foreign Trade (DGFT). This digital system allows exporters to apply for and renew RCMC online. It offers real-time updates on application status and integrates with DGFT’s centralised database.

e-RCMC Module: Features and Benefits

Here is a look at the key features of e-RCMC and the benefits it offers:

1. Online Application and Renewal – Exporters can submit applications for obtaining as well as renewing the certificate online. This eliminates the need to visit the EPC offices in person.
2. Real-Time Updates – The system gives real-time updates on the application status. This keeps you updated with its progress and ensures transparency.
3. Centralised Database – e-RCMC integrates with the DGFT’s centralised database. This provides access to exporter information and enhances coordination between various government agencies.

Other Benefits of RCMC Registration

Here is a look at the various benefits offered to exporters who opt for RCMC registration:

• RCMC registration enables you to take advantage of benefits such as Duty Drawback, Duty-Free Import Authorization (DFIA), and the Merchandise Exports from India Scheme (MEIS).
• It also allows participation in trade fairs and exhibitions organised by Export Promotion Councils (EPCs). This helps enhance your market access, provides opportunities for networking and learning, and increases your business visibility.
• EPCs provide valuable information on international trade practices and policy updates. This knowledge is essential for you as it helps you stay competitive.
• RCMC streamlines the customs clearance process by proving that the export is in compliance with government regulations.
• Acquiring this certificate also enhances your credibility as an exporter, as it shows that you adhere to the prevalent government norms and standards.

RCMC Registration: Understanding the Eligibility Criteria

Here is how an exporter becomes eligible for RCMC registration:

• As an exporter, you must confirm that your business deals with exports and imports. You must also prove that you have submitted an application for an Import Export Code (IEC) through an authorised authority.
• Business Main Line Declaration is another important step for RCMC registration. In this, you must mention your business line. You need to consult the Export Promotion Board of that particular product line. If there is no export promotion board for that particular product category, then it needs to be mentioned.
• Necessary board permission is mandatory to be eligible for RCMC registration. In case a specialised board is not available for a product category, then you must apply for FIEO approval.

Essential Documents for RCMC Registration

Here is a look at the documents that must be submitted for RCMC registration:

• Permanent Account Number (PAN) 
• IE Code issued by the licensing authority
• Memorandum of Association (MOA)
• GST registration certificate
• Trusts and institutional or corporate entities require the trust deed.
• A self-certified copy of the partnership deed is needed for partnership firms and individuals.
• The last three years’ data regarding the company’s foreign exchange earnings provided by the company’s CA are necessary.
• A power of attorney is required in favour of the signing authority in case the name of the signing authority is missing in the IEC, partnership deed, trust deed, or MOA.

RCMC Registration Requirements

Here are the key registration requirements for obtaining an RCMC:

• Applicants are required to fill out the application form by visiting the EPC office or on EPC’s website. Details about the exporter’s products and business need to be mentioned in the form, among other things.
• A valid IEC issued by the Directorate General of Foreign Trade (DGFT) is mandatory.
• Copies of business registration certificates, such as the GST registration certificate, company incorporation certificate and PAN card, must be submitted.
• It is important to provide detailed information about the products to be exported.
• Membership fees must be paid to the respective EPC or Commodity Board.
• You must provide an undertaking in which you require affirming adherence to the rules and regulations of the EPC and the FTP.

RCMC Registration: Authorities and Their Roles

RCMC registration is done by the Export Promotion Councils, Commodity Boards and Export Development Authority. The DGFT has authorised them to issue these certificates. Their role is to contribute towards the growth of the Indian export industry. Each of these authorities grants certificates for a particular category of products.

Complying with RCMC: Guidelines and Implications

It is necessary to comply with the RCMC guidelines. Here is a look at its compliance requirements:

• Exporters are required to adhere to the export-import policy guidelines associated with the RCMC issued by the DGFT.
• RCMC is valid for a period of five years. It needs to be renewed after this period to avoid non-compliance.
• Exporters must comply with the quality standards set by the importing country.
• In order to avoid cancellation of RCMC, you are required to submit your annual export data to the DGFT.
• You should maintain records of your export transactions. You must comply with DGFT’s record-keeping requirements. 
• You must comply with foreign trade regulations such as export control regulations and sanctions, among others.
• You need to comply with the customs regulations related to goods export.

Penalties for RCMC Violations

In case you fail to register for RCMC, provide incorrect information while registering for it, or do not renew it timely, then you shall be required to pay a penalty for the same. The penalties can be in the following forms:

• Financial Penalties – Monetary fines may be imposed based on the severity and nature of the violation. If the violation is repeated, the fine may increase.
• Suspension of Benefits – Non-compliance can lead to the suspension of export benefits.
• Legal Action – Legal action may be taken against the exporter in case of severe violation.

Know the DGFT Notification 

DGFT has notified that exporters must file RCMC via a common digital platform from 1^st April 2022. 

Under Appendix-2T, all the registering authorities were notified to onboard the e-RCMC portal before the end of the financial year in 2022.

RCMC Validity: What You Need to Know?

RCMC is valid for up to five years from the year it is issued. It ends on 31^st March of the fifth year.

Updating Your RCMC: Amendment Procedures

You can make amendments to the already issued RCMC by visiting the DGFT website and following a few simple steps. Here’s how:

• Log on to https://www.dgft.gov.in/CP/.
• Click on “Services”.
• Select “e-RCMC”.
• Select “Amendment for RCMC”.
• Enter your username and password and follow course.

RCMC Renewal Procedure

Expired RCMC can be renewed by logging on to the DGFT website. Follow the below-mentioned steps for the renewal of the certificate:

• Log on to https://www.dgft.gov.in/CP/.
• Select “Services”.
• Click on “e-RMC”.
• Select “Renewal of RCMC”.
• Enter your username and password and follow course.

Role of Import Export Code in RCMC Requirements

Exporters must have the Import Export Code in order to obtain RCMC. Why? IE code is required to initiate any kind of import and export activity, which is also a mandatory requirement for obtaining RCMC. IEC is necessary for RCMC registration as it is an essential identifier for all export and import activities in India.

Conclusion

RCMC registration is a must for Indian exporters. It provides many benefits and support services to the exporters. The registration process is simple, and the e-RCMC initiative has made it easier and more efficient. Certain documentation requirements are required to obtain an RCMC. Accurate submission of all the necessary documents facilitates a smooth registration process. Compliance with RCMC regulations is essential for exporters to avoid penalties.