When dealing with exports, efficiency, compliance, and reliability are non-negotiable. Each stage in the process, from documentation to delivery, must be handled with precision. And one crucial document that plays a pivotal role in this process is the Registration Cum Membership Certificate (RCMC). Think of it as your official license to participate in the global marketplace. Without it, your export operations could hit unexpected roadblocks.

For your business to become thriving, and the demand for your goods to surge, you need to build your brand reputation, and having an RCMC can create credibility. Without this certificate, not only do you lose access to key government incentives, but your shipment could also face unnecessary delays at customs. Being compliant with the RCMC ensures that your exports move smoothly through the global trade channels, while also granting you access to a range of benefits that can help you grow your business.

This blog guides you on how to register for the RCMC certification and how it can provide significant advantages under the Foreign Trade Policy of India.

Understanding RCMC

The RCMC stands for ‘Registration Cum Membership Certificate', a mandatory certification for exporters involved in the export of registered products. Without it, exporting certain goods can be complicated, and eligibility for various trade benefits might be lost. Required by the Foreign Trade Policy of India, the RCMC validates an exporter's status, allowing them to access various privileges, including the export of restricted items. This certificate is issued by authorities governed by DGFT within India, ensuring that exporters remain compliant and eligible for various trade benefits.

Importantly, the certificate has a validity period of five years, ensuring long-term access to export-related benefits.

Key Facts About RCMC:

RCMC is particularly important for businesses seeking to enhance their export credentials and to engage with Indian and global trade networks effectively. Here's a list of key facts:

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Having understood what RCMC entails, let's look at the authorized bodies responsible for issuing RCMC certificates.

Issuing Authorities for RCMC

Who issues the RCMC, and which body do you need to approach? The answer depends on the type of product you are exporting. The certificate is issued by recognized entities such as Export Promotion Councils (EPCs), Commodity Boards, and specific Development Authorities. These bodies are authorized by the Directorate General of Foreign Trade (DGFT). To be specific, currently, there are 14 Export Promotion Councils under the administrative control of the Department of Commerce, India.

Issuing Bodies under DGFT:

The Directorate General of Foreign Trade (DGFT) has many development authorities, including Export Promotion Councils (EPCs) and Commodity Boards:

Now that you're familiar with the issuing bodies, let's move on to the actual process of registering for an RCMC.

Procedure for RCMC Registration

The RCMC registration process is now completely digital, making it easier for exporters to apply. All applications must be submitted electronically through the DGFT's Common Digital Platform. While the process has been streamlined, it's essential to provide the correct documents, including company certification details and export turnover figures. Any oversight could lead to delays or rejections. Once all documents are submitted and payments are completed, the authority scrutinizes the application before issuing the certificate.

Exporters looking to obtain the Registration Cum Membership Certificate (RCMC) must follow these steps:

1. Electronic Application:Apply by submitting your application online via the official DGFT platform.

2. Document Upload:Upload required documents, including Import Export Code (IEC), partnership details, and proof of business.

3. Payment:Complete the payment online. The fee amount varies across councils and boards.

4. Scrutiny and Issuance:Await the scrutiny of the application by the Export Promotion Council, Commodity Board, or Development Authority. Once verified, the RCMC is issued.

Pre-Requisites for RCMC

The RCMC is a government-issued certificate that validates an exporter's authority to trade products registered with authorized agencies in India. To obtain an RCMC, an exporter must declare their primary business in the application, which is submitted to the relevant authority. To apply for RCMC, an exporter must have:

1. An active Importer Exporter Code (IEC).
2. An updated IEC profile linked with a digital signature token or Aadhaar e-signature.

RCMC Registering Authorities

RCMCs are issued by Export Promotion Councils, Commodity Boards, and Development Authorities, authorized by the DGFT. These entities help promote various export sectors.

Example: These organizations ensure that exporters in their respective industries are empowered to participate effectively in global trade. Here's a breakdown depicting various promotion councils for exporting commodities:

By keeping this information handy, exporters can navigate the process of RCMC registration smoothly, ensuring compliance and access to the many benefits of being a recognized entity in India's export industry.

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Now that you understand the steps involved in registration, let's explore the documents you'll need to complete the application:

Required Documents for RCMC

Documentation is critical in the RCMC registration process. Apart from the Import Export Code (IEC), a basic requirement, the following documents are a must-have to ensure a successful registration:

1. Import Export Code (IEC)
2. Permanent Account Number (PAN)
3. Partnership Deed, MOA, AOA
4. Details of Partners/Directors
5. Proof of manufacturing segment
6. Export turnover details
7. Company certification documents

Ensuring you have these documents ready not only smooths the registration process but also helps avoid unnecessary delays.

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Now that you have a clear idea of the documentation required, let's examine the benefits you'll enjoy after obtaining your RCMC:

Benefits of Obtaining RCMC

RCMC is more than just a certificate—it's a passport to numerous export privileges. For example, without an RCMC, an exporter cannot avail of schemes like MEIS, RoSCTL, or RoDTEP. In addition, RCMC holders can benefit from the Duty Drawback Scheme and access subsidies for export promotions. Not to mention the certificate opens doors to key trade fairs, where buyer-seller matching opportunities abound.

By obtaining RCMC, exporters gain several advantages:

1. Eligibility for Schemes: Access to export promotion schemes like MEIS, RoSCTL, and Duty Drawback.

2. Export/Import Privileges: Facilitation of customs clearance to export/import restricted items, making the process quicker and more streamlined.

3. Advantage on Customs & Excise Duty: Increased credibility by proving compliance with government standards.

4. Access to Promotional Events & Trade Fairs: Stay updated with market information via the activities and programs of Export Promotion Councils.

Here's a list of benefit and their schemes applicable:

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Now that the advantages of having an RCMC are clear, let's wrap things up with some final thoughts on why this certification is crucial for exporters.

Conclusion

In today's fiercely competitive global marketplace, presenting the right certifications is crucial for your business's success. The Registration-Cum Membership Certificate (RCMC) is essential for Indian exporters. It provides access to numerous benefits while ensuring compliance with the Foreign Trade Policy. The digitized application process enables exporters to complete the RCMC registration efficiently. This compliance opens doors to many advantages. For companies aiming to succeed in international markets, obtaining an RCMC is a vital step. Overall, RCMC helps your business become a recognized player in India's export industry.

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Resources:

1. Everything you need to know about the RCMC certificate | DHL India

2. What is e-Registration Cum Membership Certificate (e-RCMC)?

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