The RCMC (Registration Cum Membership Certificate) is an authorization document for importing or exporting restricted products according to the Foreign Trade Policy (FTP). Typically, the Export Promotion Councils (EPCs), Commodity Boards, and Export Development Authorities established by the Director General of Foreign Trade (DGFT) for each restricted product issue this certificate.
Moreover, it functions as proof of membership or registration of an exporter with a specific EPC, commodity board, or export development authority. The RCMC is essential to benefit from concessions provided under the FTP for importing or exporting restricted goods.
Registration-Cum-Membership Certificate (RCMC)
The Registration-Cum-Membership Certificate (RCMC) validates an exporter dealing with products registered with an agency or organization authorized by the Indian Government. This certificate indicates that the exporter is registered with the authorized agency or organization.
Why RCMC Registration?
- Firstly, it authorizes importing or exporting products that fall under the restricted category per the Foreign Trade Policy (FTP).
- Secondly, it is evidence of membership or registration of an exporter with a specific EPC, commodity board, or export development authority.
- Thirdly, it is required to take advantage of concessions provided under the FTP for the import/export of restricted goods.
Eligibility for RCMC Registration Online
Exporter or Merchandiser (Merchant)- Before applying for RCMC registration, the exporter or merchandiser must confirm that their business deals with imports and exports. This is one of the key requirements for starting a manufacturing company in India. Additionally, the exporter must prove they have applied for an Import Export Code (IEC) from the authorized authority. The DGFT (Director General of Foreign Trade) regulates the IEC.
Business Main Line Declaration- In the Business Main Line Declaration, the exporter or merchant must specify their primary business line. For instance, if their main business is dealing with coffee and tea products, they need to consult the Tea and Coffee Promotion Board. In case there is no export promotion board or regulatory agency for the commodities dealt with by the exporter, this needs to be mentioned as well.
Consent from the Board of the FIEO- The applicant must obtain the necessary board permission or clearance from FIEO. If no specialized board is available for a specific product, the applicant needs to apply for approval to FIEO. In addition, obtaining FIEO authorization is also required for RCMC registration.
Who issues the RCMC?
The certificates are issued to the exporters and importers by Registering Authorities. They include Export Promotion Councils (EPCs), Commodity Boards and Export Development Authorities. These bodies are authorised to act as Registering Authorities by the DGFT (Director General of Foreign Trade).
There are currently 35 organisations that act as Registering Authorities. They comprise of:-
- 27 Export Promotion Councils
- 6 Commodity Boards
- 2 Development Authorities
The main aim of these bodies is to promote and enhance the development of Indian exports. They are divided into different sectors, each one responsible for a particular group of products.
Benefits of RCMC
- Access to export promotion schemes and benefits – RCMC is a mandatory requirement for availing export promotion schemes and benefits such as Duty Drawback, Merchandise Export from India Scheme (MEIS), and Market Access Initiative (MAI).
- Facilitation in import and export – RCMC makes it easier for exporters to import or export restricted goods as the certificate validates the exporter’s authenticity and products’ authenticity.
- Easier customs clearance – RCMC reduces the time and effort required for customs clearance as it proves the exporter’s membership with a recognized authority and their compliance with government regulations.
- Enhances credibility – RCMC enhances the credibility of the exporter as it is a testament to their compliance with government regulations and standards.
- Access to market information – RCMC enables exporters to stay updated with the latest market information and developments through export promotion activities and programs organized by Export Promotion Councils and Commodity Boards.
Export promotion councils
Export Promotion Councils:
- Agricultural and Processed Food Products Export Development Authority (APEDA)
- Apparel Export Promotion Council (AEPC)
- Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council (CHEMEXCIL)
- Carpet Export Promotion Council (CEPC)
- Chemicals and Allied Products Export Promotion Council (CAPEXIL)
- Council for Leather Exports (CLE)
- Electronics and Computer Software Export Promotion Council (ESC)
- Engineering Export Promotion Council (EEPC)
- Federation of Indian Export Organisations (FIEO)
- Gems and Jewellery Export Promotion Council (GJEPC)
- Handloom Export Promotion Council (HEPC)
- Handicrafts and Handlooms Export Corporation of India (HHEC)
- Indian Oilseeds and Produce Export Promotion Council (IOPEPC)
- Indian Silk Export Promotion Council (ISEPC)
- Marine Products Export Development Authority (MPEDA)
- Pharmaceuticals Export Promotion Council of India (PHARMEXCIL)
- Plastics Export Promotion Council (PLEXCONCIL)
- Project Exports Promotion Council of India (PEPC)
- Services Export Promotion Council (SEPC)
- Shellac Export Promotion Council (SPEC)
- Sports Goods Export Promotion Council (SGEPC)
- Synthetic and Rayon Textiles Export Promotion Council (SRTEPC)
- Tea Board of India
- Tobacco Board
- Wool and Woollens Export Promotion Council (WWEPC)
- The Coffee Board of India
- The Cotton Textiles Export Promotion Council (TEXPROCIL)
Commodity Boards
- Coir Board
- Coffee Board
- Rubber Board
- Spices Board
- Tea Board of India
- Tobacco Board
Development Authorities
- Electronics Industries Development of India (ELCID)
- National Centre for Trade Information (NCTI)
If an export product is not covered by any Export Promotion Council or Commodity Board, the exporter can obtain the RCMC from the Federation of Indian Exporters Organization (FIEO).
If the exporter deals with multi-products and the situation are unresolved, they can also obtain RCMC from FIEO.
For multi-product exporters in the North Eastern States, the RCMC can be obtained from Shellac & Forest Products Export Promotion Council (except for products managed by APEDA, Spices Board, and Tea Board).
For exporters of handicrafts and handloom products from Jammu & Kashmir, the Director of Handicrafts, Government of Jammu & Kashmir, is authorized to issue the RCMC.
Validity of RCMC
The RCMC remains valid starting from the issuance date on the 1st of April of the licensing year and is valid for five years, concluding on the 31st of March.
Documents Required for RCMC
The application form for RCMC must be accompanied by several mandatory documents, including:
- An IEC number issued by the regional licensing authority
- A Permanent Account Number (PAN) granted by the competent authority
- The Memorandum of Association (MOA) for corporate, institutional, private limited, or limited companies
- A self-certified copy of the partnership deed for partnership companies and individuals
- The trust deed for trusts, institutional or corporate entities
- A certificate from the Registrar of Companies regarding the registered office change of the company
- Certified data on the company’s foreign exchange earnings over the past three years, provided by the company’s chartered accountant
- A board resolution or power of attorney issued in favor of the signing authority, if the name of the signing authority is not mentioned in the IEC/MOA/partnership deed/trust deed of the company/firm/trust
- A GST registration certificate.
Types of Exporters/Importers Covered - RCMC
- Ordinary Membership: This type of membership is suitable for businesses new to the export and import industry and looking for basic membership.
- Associate Membership: This membership is for entities involved in the export and import trade for a significant period and has an established business. The fee for associate membership is higher than ordinary membership and includes a small amount of GST.
- Premier Trading House (PTH) Membership: This membership is for companies with a significant share in India’s total exports and substantially contributed to India’s international trade.
- Star Export House (SEH) Membership: This membership is for companies that have demonstrated consistent export growth and earned significant foreign exchange.
- Trading House (TH) Membership: This membership is for companies engaged in import and export activities with an annual turnover of at least INR 100 crores.
Compliance with RCMC
- Renewal of RCMC: The RCMC is valid for five years, after which it needs to be renewed. Failure to renew the RCMC can result in non-compliance.
- Adherence to Export-Import Policy: Exporters must adhere to the export-import policy guidelines and conditions related to the RCMC issued by the DGFT.
- Submission of Annual Export Data: Exporters must submit their annual export data to the DGFT as required. Failure to do so can result in the suspension or cancellation of the RCMC.
- Compliance with Customs Regulations: Exporters must comply with the customs regulations and procedures related to the export of goods. Non-compliance can result in penalties and other legal actions.
- Compliance with Foreign Trade Regulations: Exporters must comply with the various foreign trade regulations related to the export of goods, such as compliance with export control regulations, sanctions, and embargoes.
- Adherence to Quality Standards: Exporters must adhere to the quality standards specified by the importing country for exporting goods.
- Maintenance of Records: Exporters must maintain records related to their export transactions and comply with the record-keeping requirements of the DGFT.
FAQs
What is RCMC Registration?
Registration-Cum-Membership Certificate is a certificate issued to exporters by Export Promotion Councils or Commodity Boards in India. The purpose of RCMC Registration is to enable exporters to avail various benefits offered by the Government of India, such as exemption from payment of certain taxes and duties, and access to various export promotion schemes.
Who can apply for RCMC Registration?
Any person or business engaged in export activities in India can apply for RCMC Registration. This includes manufacturers, traders, merchants, and service providers who are involved in the export of goods or services from India.
What is the purpose of RCMC Registration?
- RCMC Registration is a prerequisite to participate in various export promotion schemes and to claim certain exemptions and concessions provided by the government.
- It is also required for availing benefits under the Foreign Trade Policy of India.
- By obtaining RCMC Registration, exporters can enjoy a host of benefits, including exemption from payment of certain taxes and duties, access to credit facilities, export incentives, and other export-related facilities provided by the government.
- In essence, RCMC Registration is an important document that helps exporters in India to boost their competitiveness in the global market.
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Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013