RCMC Registration: How It Can Help You Grow Your Export Business

DGFT authorized bodies, such as Export Promotion Councils (EPCs), Commodity Boards, or Development Authorities certify Indian exporters by issuing the Registration Cum Membership Certificate (RCMC). This crucial record serves as evidence that an exporter is registered with the appropriate council and qualified to receive benefits under the Foreign Trade Policy. 

The RCMC is essential for gaining access to a number of government benefits for your exporting company, regardless of whether you deal in multi-product categories, engineering goods, or textiles.

• An RCMC certificate authenticates an exporter’s registration with the relevant Export Promotion Council or issuing authority. Beyond just recognition, RCMC registration helps exporters gain access to sector-specific support, the latest updates, and schemes offered by the relevant EPC, thereby enhancing industry networking and access to trade opportunities.
• RCMC registration is important for claiming Foreign Trade Policy (FTP) benefits such as duty exemptions and incentives. It is also a legal requirement for exporters dealing in restricted or regulated goods.
• RCMC is issued by Export Promotion Councils, Commodity Boards, or Development Authorities in India, among other competent authorities, as prescribed in the Foreign Trade Policy. The specific authority that will issue your RCMC, depends on the type of product you deal in and the relevant sector that pertains to it. These authorities also help promote and develop export businesses.
• RCMC is valid for five years from the date of issue. Benefits of RCMC include improving exporter credibility, making it easier to secure buyers, trade licenses, and funding from banks or government agencies, while also providing access to trade support and schemes.

RCMC stands for Registration-Cum-Membership Certificate. It is a certificate issued by Export Promotion Councils (EPCs) or other designated authorities in India to exporters, verifying their registration and membership status. This certificate is crucial for exporters as it enables them to avail benefits under various foreign trade policies and schemes, including those related to customs and excise.

RCMC registration is generally required for exporters in India as it serves as proof of registration for exporters. 

Additionally, RCMC helps exporters access various benefits, incentives and subsidies provided by the government. It also helps with smooth transit of goods during customs clearance. 

As an exporter in India, you might require the RCMC registration for the following reasons: 

1. Authorization: RCMC is legally required if, as an exporter, you’re dealing in restricted products. It proves that you’re authorised to carry out exports under the Foreign Trade Policy (FTP). 
2. Benefits under FTP: RCMC will also help you claim export incentives and subsidies under various schemes of the government. These benefits will help you as an exporter to improve your business activities and enhance competitiveness.
3. Central excise benefits: An RCMC will help you avail exemptions or rebates on central excise duties when you’re exporting goods. 
4. Custom clearance: RCMC will help in the smooth clearance of export goods by reducing the time and effort required during customs clearance. It is proof that you are a genuine, registered exporter. 

Credibility: RCMC also improves the business’s reputation and trustworthiness in both domestic and international markets.

The Directorate General of Foreign Trade (DGFT) has authorized certain bodies for issuing the RCMC.

The bodies that fall under this DGFT approved umbrella are Export Promotion Councils, Commodity Boards, or Development Authorities. We’ll look at each in detail below:

Export Promotion Councils

EPCs are industry-specific organizations that promote and support the export of goods and services from specific sectors. You could be engaged in chemicals, apparel, and marine products exports, EPC will have a category for your business. 

They also give a boost to trade activities by advocating government policies, providing market access, organizing trade fairs, and improving exporter education.

Examples:

• Apparel Export Promotion Council (AEPC)- for garments
• Handloom Export Promotion Council (HEPC)- for handloom/artisanal textile products
• Engineering Export Promotion Council (EEPC)- for engineering goods

Commodity Boards

Commodity Boards are statutory bodies set up to promote the export of specific agricultural or plantation commodities. They work under the Ministry of Commerce or Agriculture. 

Unlike EPCs, Commodity Boards focus more on the entire supply chain, from product development and market research to exports, including domestic regulation, product quality, and farming practices.

Examples:

• Tea Board of India
• Rubber Board
• Spices Board

Export Development Authorities

Development Authorities are established by the government to promote the export of emerging sectors and specialized industries. It includes tech, services, or region-specific development-oriented industries.

Their focus is more on infrastructure development, data, and support services rather than direct export promotion. Hence, they are complementary to EPCs and Commodity Boards.

Examples:

• Electronics and Computer Software Export Promotion Council (ESC)
• National Centre for Trade Information (NCTI)

As an exporter in India, you must fulfil the eligibility set by the Federation of Indian Export Organizations (FIEO) and other export promotion councils. Take a look at these eligibility criteria for RCMC registration, before you apply for one: 

• Engaged in export business: You must be involved in exporting or importing goods. This is the main criterion that your export business must fulfil, because it establishes the involvement in international trade. 
• Import Export Code (IEC): Issued by the Director General of Foreign Trade (DGFT), applicants must also have an Import Export Code (IEC). It is essential for engaging in any export or import activity in India.
• Relevant product category: Ensure that you’re applying to the correct Export Promotion Council, Commodity Board, or Development Authority. It is based on the main line of products or services you export.

Approval from FIEO: If you’re an exporter in a sector that does not have its dedicated board, you must seek approval directly from the Federation of Indian Export Organisation (FIEO).

RCMC application process allows different types of memberships to the recognized exporters and importers like: 

• Ordinary membership: Ordinary membership is suitable for exporters or importers who are just starting out in the international arena. It gives them basic access to the benefits offered by the concerned Export Promotion Council or authority.

• Associate membership: Associate membership is meant for businesses which are comparatively more established, and have a track record in exports or imports. It comes with more privileges and a slightly higher membership fee, including GST.

• Trading House (TH) membership: This membership is designed for businesses that have achieved a minimum of INR 100 crore in annual export or import turnover. Mid to large-scale trading firms fall under its purview, for their contribution to India’s foreign trade. 

• Premier Trading House (PTH) membership: PTH membership is for companies that handle a large volume of exports or imports and play an important role in increasing India’s global trade footprint.

• Star Export House (SEH) membership: Exporting companies that consistently perform well in their operations and contribute notably to foreign exchange earnings are given this membership. It reflects their high-performance status and sustained export growth.

Here’s a guide on choosing the right Export Promotion Council for your export business:

• Identify your main export product or service

What is the primary item or service your business exports? Start by figuring that out. Your EPC should align with your core export category, not the entire range.

• Match your product to the relevant EPC

Select the EPC that covers your primary line of exports, such as textiles, chemicals, or handlooms. 

Note: If your business is engaged in the export of services like IT, education, healthcare, etc., the Services Export Promotion Council (SEPC) is the appropriate authority.

• Check the official list of EPCs recognized by DGFT

Refer to the DGFT website and check the latest list of recognized EPCs. Ensure that you’re choosing an authorized and valid body.

• Register with FIEO if you are a multi-product exporter

If your business deals in more than one product category and there’s no single EPC that fits, you can register with the Federation of Indian Export Organisations (FIEO).

• Avoid duplicate registration

You must register with only one EPC per product category. If your business focus changes, shift your RCMC to the correct EPC. 

If you’re applying for RCMC registration, you must have the following documents: 

• An Import Export Code (IEC) issued by the DGFT
• Permanent Account Number (PAN) 
• The Memorandum of Association (MOA) for companies or Partnership Deeds in case of partnerships
• Trust deed (for institutional trusts)
• A certificate from the Registrar of Companies regarding the change of registered office of the company
• Chartered Accountant-certified export earnings of the past three years
• Board resolution or Power of Attorney (if the signatory is not named in the IEC or company documents) 
• A GST registration certificate.

You must follow the given steps to apply for an RCMC:

Step 1. Complete the application form: Go to the DGFT website and fill out the e-RCMC (online RCMC form).

Step 2. Submit the application and documents online: Upload the filled form and required documents to the respective EPC or commodity board's portal.

Step 3. Pay the registration fee: Pay the applicable RCMC fee, which varies by council. This is usually done online during submission.

Step 4. Wait for processing: The EPC typically takes 7–10 working days to process the application.

Step 5. Receive your RCMC: Once approved, you’ll receive the RCMC certificate, which is valid for five years.

Step 6. Renewal: Before expiry, you must renew the RCMC by resubmitting documents and paying the renewal fee.

RCMC registration is valid for five financial years, starting from April 1 of the year it’s issued and ending on March 31 of the fifth year, unless stated otherwise. 

If you need to renew your RCMC registration, the process is completed online through the DGFT website. You just need to select your preferred EPC, pay the requisite fees, and your RCMC registration will be renewed. 

If you need to make any changes in your RCMC, such as address, director details, or alterations in the export product list, you should submit an online request on the DGFT Portal within one month of such changes. It’s needed so that your RCMC accurately reflects the updated information.

Apart from the key benefits like legal recognition, FTP incentives, and easier customs clearance, RCMC registration also offers several additional advantages like the following: 

• Participation in trade fairs and buyer-seller meets in EPC-organized events.
• Export guidance by EPCs through industry-specific advice, trade data, and updates on international regulations.
• Priority in government export initiatives like grants and subsidies.
• Networking opportunities with international buyers and enhancing global presence.
• Support in resolving trade-related issues or disputes with foreign buyers or customs.

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