In an era marked by India's growing influence on the global stage, the country's export sector presents a landscape filled with opportunities for expansion and growth. As reported by India’s Ministry of Commerce and Industry, total exports, encompassing both merchandise and services, have reached an estimated US$ 62.58 billion as of November 2023.
At this pivotal juncture, the RCMC or Registration-Cum-Membership Certificate in its full form, emerges as a crucial document for exporters looking to navigate and thrive in international markets. This certification validates your business’s position within the regulated export community and marks your entry into a network of opportunities tailored for global expansion.
Let’s explore how obtaining an RCMC can transform your export journey in India.
Purpose and benefits of RCMC
Delve into how RCMC elevates your export business from legitimacy to operational advantages.
1. Recognition as an exporter
An RCMC certificate doesn’t just symbolise your status as a legitimate exporter; it acts as an indicator, signalling to potential partners and regulatory bodies worldwide that your business adheres to the standards set by the Indian government and its trade policies.
This recognition is not merely about having a label but establishing trust and credibility in international markets, opening doors to new business opportunities and collaborations.
2. Concessions and benefits
Beyond the badge of legitimacy, securing an RCMC for exports enables your business to leverage a suite of incentives under the Foreign Trade Policy, such as duty drawbacks, tax exemptions, and subsidies tailored to reduce operational costs and enhance competitiveness.
Specifically, these concessions can significantly lower the financial barriers to entry in overseas markets, allowing exporters to allocate resources more efficiently and focus on scaling their operations.
3. Ease in obtaining licences
Holding an RCMC streamlines the otherwise complex and time-consuming process of acquiring various licences and permits essential for export. This certification signals to authorities that your business has already been vetted and meets the necessary export standards, thereby expediting the review process for additional documentation.
In practical terms, this means faster turnaround times for obtaining critical permits, reducing idle periods and enabling quicker market entry.
4. Access to market development assistance
RCMC enables Indian businesses to receive support in showcasing their products at global trade fairs and exhibitions. By participating in these events, businesses with an RCMC certificate gain exposure and the opportunity to network and attract international buyers, significantly boosting their global presence.
Who issues RCMC?
The RCMC is issued by the Export Promotion Councils (EPCs), each dedicated to a specific product or service sector that the exporter operates within. Additionally, India's commodity boards can issue the RCMC for those dealing with specialised products.
This framework allows exporters to align with the most relevant authority, facilitating access to sector-specific benefits and guidance.
Eligibility criteria for RCMC
To qualify for an RCMC, businesses must adhere to specific criteria set by the Federation of Indian Export Organizations (FIEO) and other export promotion councils. Here's a breakdown:
- Export-Import Engagement: The applicant must actively engage in exporting or importing goods. This fundamental criterion establishes the business's involvement in international trade.
- Acquisition of Import Export Code (IEC): Applicants must have an Import Export Code issued by the Director General of Foreign Trade (DGFT). This code is essential for conducting any export or import activity in India.
- Specification of Business Sector: Applicants must specify their primary sector or operation. For instance, if a company specialises in the export of leather goods, obtaining approval from the Council for Leather Exports is necessary.
- Approval from FIEO or Sector-Specific Board: In cases where a sector does not have a dedicated board, the business must seek approval directly from the FIEO or the relevant export promotion council. This ensures that the appropriate governing body in India's export framework recognises and supports the company.
Understanding the RCMC registration process
For businesses in India aiming to leverage the benefits of international trade, here's a walkthrough of the online registration process for obtaining an RCMC:
- Identify the relevant Export Promotion Council (EPC) or Commodity Board: Depending on your product or service, find the appropriate EPC or commodity board for your sector.
- Prepare the required documents you will need:
- Import Export Code (IEC) number
- Permanent Account Number (PAN)
- Memorandum of Association (MOA) for companies or Partnership Deed for partnership firms
- Trust Deed for trusts
- A change in the registered office certificate from the Registrar of Companies, if applicable
- Foreign exchange earnings details for the past three years, certified by a Chartered Accountant
- A board resolution or power of attorney if the signing authority is not mentioned in the primary documents
- GST registration certificate
- Complete the RCMC Application Form: Visit the DGFT's website to access the e-RCMC or online registration form for the RCMC certificate.
- Submit the Application and Documents Online: Upload the completed RCMC application form along with the required documents to the respective EPC's or commodity board's website.
- Pay the RCMC Registration Fee: The fee amount varies across councils and boards. Payment is typically made online during the RCMC application process.
- Wait for Processing: The usual processing time is about seven to ten days, although it may vary.
- Receive Your RCMC: Once processed and approved, you will receive your RCMC, which is generally valid for five years and can be renewed afterwards.
- Renewal: To renew your RCMC, submit the required documents and pay the renewal fee before expiration.
