As per the Foreign Trade Policy, RCMC is necessary for exporters to avail of various advantages under this policy. Holding this certificate highly helps exporters availing benefits concerning Excise and Customs.
The Export Promotion Councils and the commodities board in India categorise themselves based on the nature of the product, for instance, the Council for Leather Exports overseas trade of Leather/Leather products. According to their principal business line, exporters must apply with the EPC/Commodity Board to get RCMC. If the exporter's product line is not in any category, they could request RCMC at FIEO.
Did You Know?
Each Council/Board promotes a specific group of projects/services/products. EPCs/Commodity Boards are also eligible to function as Registering Authorities notified by DGFT regarding the issue of RCMC to its members. There are 9 commodities boards and 28 Export promotion councils in India.
What is RCMC?
RCMC (Registration as membership certificate) is a certificate of membership given to an exporting company when it registers with any member of the Commodity Board of India or Export Promotion Council.
These two organisations are recognised by the Central Government and allotted the mission of promoting exports out of our country. They are responsible for the following activities in export promotion:
- Organising trade exhibitions in India and abroad and buyer-seller meet-ups.
- Sending live inquiries and tenders from foreign customers to exporters in India.
- Helping entrepreneurs and exporters who are new to the market to assist them with all export processes and documentation. Also, assisting entrepreneurs in beginning exports by providing product information.
- Help and guidance for existing exporters in case of refund delay or any other issue they might face.
- They serve as mediators between the exporting community and the government.
- They inform exporters of all the latest developments in policy and announcements w.r.t DGFT, Ministry of Shipping, RBI, Customs and others.
A few Export Promotion Councils are PHARMEXCIL, TEE BOARD SPICES BOARD, FIEO, APEDA, CHEMEXCIL, EEPC, etc. Each EPC concentrates on the promotion of exports of a specific sector. For example, PHARMEXCIL looks after the Pharma sector, CHEMEXCIL looks after the Chemicals sector, and APEDA looks after Agricultural Products.
Types of Membership for RCMC Registration
There are two kinds of membership available for RCMC Membership registration under FIEO.
Ordinary Membership
The name implies that it is the basic type of membership. This kind of membership would be for an organisation just entering the business of trading and importing goods.
Also Read: Everything You Need to Know About EXIM Bank
Associate Membership
The associate membership is only for companies importing/exporting for several years. The cost for associate membership relies on the fee and the GST at a modest rate.
The following illustrates the benefits of RCMC registration. The following section will help you understand the points such as foreign trade policy and export promotions.
Benefits of RCMC Registration
The principal authority that regulates RCMC registration is FIEO. Therefore, the exporter will need to apply for the FIEO to join. The membership granted by FIEO is called the RCMC. The following advantages are considered when deciding on RCMC registration:
Foreign Trade Policy
An exporter who chooses RCMC registration will enjoy certain benefits in the countries' trade policies. In addition, various types of updates will be on offer to the exporter regarding their foreign policy.
Promotion of Exports
In India, export promotion is vital. To encourage development in various sectors, it is essential to boost exports. This registration will directly increase exports on an international scale. One benefit of having this registration is that it will secure international expansion strategies for exports within the country.
For instance, the government has announced a plan to promote Atmanirbhar Bharat. Through this scheme, the government wants Indians to purchase more items produced in India. Through these schemes, self-sufficiency is possible, and this will also increase the exports coming from India.
Availing Different Schemes
With this registration, the company or firm that exports can benefit from various schemes offered by the FIEO. This wouldn't be the case for businesses that haven't completed their registration.
Have you ever wondered about applying for RCMC? The following section illustrates the exact steps to help you apply for RCMC registration online.
How Do I Apply for RCMC Registration Online?
There are two types of membership in the RCMC registration system. If a person has to apply for a regular membership, then you need to consider the following steps:
Visit the Official Web Site for the FIEO
In the first step, the exporter or the merchant has to proceed online to the website https://www.fieo.org/index.php. The person applying for the membership must select the membership tab. After that, follow the instructions to apply for RCMC registration and endorsement. In addition, the application is available for download from the downloads tab of the FIEO website.
Click on Application for Membership Online
Some sub-tabs are part of the main tab, membership. The applicant needs to click the application. The applicant will then be directed to a different website which requires credentials. The credentials include password, username and export-import number (IEC number).
Fill in the Form With the Information Asked For
In the membership tab, there is a second tab titled ordinary membership. The person exporting needs to provide vital information in the ordinary membership section.
The details include names, addresses and the status of the house that is exporting, no matter the exporter has any of the following export houses:
- One Star
- Two Star
- Three Star
- Four Star
- Five Star
Provide the Mandatory Details
The firm's name and the nature of the exports that the company carries would be obligatory.
Also Read: Exporting from India: What You Need to Know
Include the Entity type
The next step is that the applicant should indicate the type of entity they are applying for in the field given. This will indicate the entity type, whether it is a partnership or a corporation.
Include Information on Key Management Executives
The next step is that the applicant must give information about the most important managers of the company. This includes information about shareholders and directors of the business.
Provide a Letter of Authority
In the final stage, the applicant must submit a letter of authorisation. The letter should state who the person in charge of the applicant is within the FIEO for the application. This information is necessary on the part of the candidate.
Documents Required to Register for RCMC Registration
Complete and sign the RCMC Application for ANF 2C.
- IEC Number issued to the exporter who is applying.
- PAN Card
- Memorandums or the Articles of Association in the case of Private Ltd and Limited Companies
- Partnership Deed for Partnership Firms and LLP
- Trust Deeds in case of Trusts
- Certificate of registered officer issued by the Registrar of the company/companies
- GST registration certificate
Top Considerations
- You must inform your RCMC of the authority to register any changes in address, name or ownership of the constitution within a month from the date of changes.
- As an exporter, you'll need to file quarterly reports detailing your exports to the authority you register with.
- An RCMC Certificate is valid until the 1st day of April in the year it is issued. It stays valid for five years, expiring on the 31st day of March in the fifth year.
- In case of a violation of the conditions and terms that govern registration, the authority registering the registration could cancel your RCMC for a specific time. In any of these cases, the authority will issue a show-cause notice. It will allow the RCMC owner to provide explanations and correct the issue before beginning the process of deregistration.
- If you are unhappy with the decision of the registering authority, you can contact the DGFT, and the decision of the appellate authority will be considered to be final.
Conclusion
To help an exporter get an RCMC, it is vital to state the main business line in the application for the Export Promotion Council. The FIEO is authorised to issue an RCMC in the Multi Products Group Category if registrations for two goods are requested that are not the same and fall within two distinct Export Promotion Councils. The mention of a primary source or business line to the relevant export promotion council is necessary. Also, you can integrate a platform like Khatabook to keep all your debit and credit transactions accessible.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
