RCMC Certificate Registration

Overview of RCMC Certificate Registration

RCMC: Registration-Cum-Membership Certificate is an important document for Indian exporters. It grants access to benefits and concessions provided under the Foreign Trade Policy, FTP. Issued by Export Promotion Councils in short EPCs, Commodity Boards, and Export Development Authorities under the aegis of the Director General of Foreign Trade: DGFT, the RCMC serves as both an authorization to export restricted goods and a membership proof in these bodies.

What is RCMC Certificate?

RCMC Full form is Registration-Cum-Membership Certificate. It verifies an exporter’s registration with an authorized agency. RCMC Certificate is obligatory for businesses intending to export or import restricted products as delineated by the FTP:

• Authorization for Restricted Products: It legitimizes the import or export of restricted items under the Foreign Trade Policy.

• Proof of Membership: It serves as evidence of an exporter's registration with a particular EPC, Commodity Board, or Export Development Authority.

• Access to Benefits: It is essential to avail concessions and benefits stipulated in the FTP for importing or exporting restricted goods.

Benefits of RCMC Registration

Securing an RCMC Certificate offers numerous advantages:

• Export Promotion Schemes: RCMC is mandatory to access export promotion schemes like Duty Drawback, Merchandise Export from India Scheme, MEIS, and Market Access Initiative,MAI.

• Trade Facilitation: This certificate makes the import and export process simpler by authenticating the exporter.

• Customs Clearance: It expedites customs clearance by proving compliance with governmental regulations.

• Enhanced Credibility: It enhances the exporter's credibility by demonstrating adherence to governmental standards.

• Market Information: RCMC holders receive market insights and updates through activities organized by EPCs and Commodity Boards.

Role of Export Promotion Councils

Export Promotion Councils (EPCs) are important for Indian exports. Each council focuses on a specific product category and works towards market expansion for those products. The DGFT authorizes various bodies, including EPCs, Commodity Boards, and Development Authorities, to issue the RCMC certificate. It ensures that Indian exporters comply with international trade standards.

List of Export Promotion Councils

• Tobacco Board
• Tea Board of India
• Coffee Board of India
• Council for Leather Exports
• Carpet Export Promotion Council
• Plastics Export Promotion Council  
• Apparel Export Promotion Council
• Shellac Export Promotion Council 
• Services Export Promotion Council 
• Handloom Export Promotion Council 
• Indian Silk Export Promotion Council 
• Engineering Export Promotion Council 
• Sports Goods Export Promotion Council 
• Cotton Textiles Export Promotion Council
• Federation of Indian Export Organizations 
• Wool and Woollens Export Promotion Counci
• The Project Exports Promotion Council of India
• Gems and Jewellery Export Promotion Council 
• Chemicals and Allied Products Export Promotion Council 

Eligibility Criteria for RCMC Registration

To apply for an RCMC (Registration-Cum-Membership Certificate), businesses must meet basic criteria. This ensures that only genuine exporters or manufacturers get registered. Below are the eligibility norms:

Who Can Apply:

• Exporters of goods or services from India.
• Manufacturers producing items meant for export
• Merchant exporters trading in foreign markets
• Service providers dealing with international clients
• Business entities having an Import-Export Code (IEC)

Additional Conditions:

• Must belong to a sector represented by an Export Promotion Council (EPC) or Commodity Board
• Registered office must be in India.
• Business must not be blacklisted by any government body
• For services, business must fall under sectors notified by SEPC (Services Export Promotion Council).

In simple terms if a company plans to sell goods or services to clients outside India, it may be eligible to apply for RCMC.

Official Guidelines for RCMC Certificate Registration

RCMC registration follows rules set by the Foreign Trade Policy (FTP) and supervised by DGFT (Directorate General of Foreign Trade). Every council or board has its own registration method. Still, there are common official steps and compliance rules

Key Guidelines:

1. Mandatory IEC Code: No RCMC can be granted without a valid IEC from DGFT
2. Correct Council Selection: Exporters must apply to the council that represents their product/service line.
3. Digital Filing Through DGFT Portal: Applications must be submitted at DGFT Portal. 
4. Proper Documentation: Council asks for documents like GST certificate, IEC, PAN, company registration, etc.
5. Single RCMC Rule: One RCMC is enough for all products unless goods fall under different sectors.
6. Updated Profile: Exporters must update their business profile on the DGFT portal each year

These rules ensure RCMC holders are genuine and follow export regulations set by the Government of India.

RCMC Certificate Registration Process

Getting an RCMC certificate is simple if you follow the proper steps. The DGFT has brought the entire process online. This saves time and paperwork.

Step-by-Step Process:

Step 1: Get IEC Code 

Obtain your Import Export Code from DGFT before starting any process.

Step 2: Access Council information at both Council Website and DGFT Portal.

You should either select a relevant council or directly access the DGFT platform.

Step 3: Fill Out the Application Form

Start by inputting basic information which includes business name, organizational type, PAN number and IEC number and GST registration status and export business activities

Step 4: Attach Documents

Next submit scanned copies of mandatory documents which follow below.

Step 5: Pay the Fee

Make the payment online. Fee varies by council and sector.

Step 6: Get RCMC Certificate

After they review everything. The council will issue a digital RCMC.

Documents Required for RCMC Certificate

To apply for an RCMC Certificate, the following documents are required:

• Copy of Goods and service registration certificate
• Permanent Account Number of Authorized Signatory
• A duly signed copy of Partnership Deed
• Memorandum of Association for corporate entities.
• Import Export Code issued by the regional licensing authority.
• Certificate from the Registrar of Companies regarding registered office changes.
• Foreign Exchange Earnings Data which must be certified by a chartered accountant for the past three years.
•  Board Resolution or Power of Attorney, If not mentioned in the IEC, MOA, partnership deed, trust deed.

Types of Applicants under RCMC

The RCMC registration process covers various types of exporters and importers, including:

1. Ordinary Membership: This is for a new business in the export and import industry who are looking for a basic membership.

2. Associate Membership: For established entities with significant experience in trade, offering more benefits than ordinary membership.

3. Premier Trading House (PTH) Membership: This is for companies with a substantial share in India's total exports.

4. Star Export House (SEH) Membership: For companies demonstrating consistent export growth.

5. Trading House (TH) Membership: For businesses with an annual turnover of at least INR 100 crores that are engaged in import and export activities.

What is the RCMC Registration Fees?

The RCMC registration fee varies depending on the type of membership and the issuing authority. Generally, the fee includes a small amount of GST and is structured as follows:

• Ordinary Membership: This is the basic fee for new entrants.

• Associate Membership: It is higher fee due to added benefits.

• Premier Trading House Membership: This is a significant fee reflecting the company's contribution to exports.

• Star Export House Membership: This is the fee based on export performance.

• Trading House Membership: The higher fee corresponds to substantial annual turnover.

Understanding and securing the Registration-Cum-Membership Certificate (RCMC) is crucial for Indian exporters and importers dealing with restricted products. This comprehensive guide outlines the significance, benefits, and requirements of RCMC Registration Online. By adhering to these guidelines, businesses can ensure their credibility, streamline trade processes, and gain access to various export promotion schemes and benefits offered by the Indian government.

Post Registration Compliance of RCMC Certificate

After registration RCMC holders must follow ongoing rules and responsibilities. These post-registration tasks are important to keep the certificate valid and to avoid penalties.

Compliance Duties:

• Annual Update:

   Every year, members must update their business profile on DGFT’s website.

• Payment of Annual Subscription Fees:

  Most councils require yearly membership renewal by paying a nominal fee.

• Filing of Export Returns:

  Some councils may ask for a report of yearly export performance.

• Notify Any Change in Business: 

  If there's a change in PAN, GST, partners, or company name, the council must be informed within 30 days.

• Participation in Export Promotion Activities:

   Members may be required to attend seminars or trade shows.

Penalty for Non Compliance

If you do not obey RCMC regulations it leads to significant problems for exporters. Noncompliance with RCMC rules will trigger penalties and cancellation along with potential scheme disqualification by DGFT

To avoid penalties, exporters must act on time and follow rules strictly.

Validity and Renewal of RCMC Certificate

An RCMC certificate doesn’t last forever. It comes with an expiry 

Validity Period:

• It is valid for 5 years from date of issue.

Renewal Process:

1. Visit Council or DGFT Website
2. Log in using IEC and PAN
3. Select Renewal Option
4. Upload Fresh Documents if Needed
5. Pay Renewal Fees
6. Receive Updated Certificate

Role of Agile Regulatory

Our company help businesses with their export compliance needs. Agile Regulatory assist them through each step of the process to obtain their RCMC certificate and later supports renewal activities

• End-to-end assistance in RCMC registration
• Help with document preparation and digital filing
• Support in council selection
• Timely updates and compliance reminders
• Fast tracking of application process
• Guidance on post-registration duties

With Agile Regulatory, businesses can focus on exports while all backend compliance is taken care of.