The export business is thriving in India and has gained a lot of support from the government. The Registration Cum Membership Certificate (RCMC) is one of the key registrations for exporters in India, conferring a lot of advantages to the applicant. Let’s have a deeper understanding of the intricacies of Registration Cum Membership Certificate and how you can obtain the same.
What is RCMC Certificate?
The RCMC is a certificate validating that an exporter is dealing with the products registered with an Indian Government authorized organisation or agency. It is necessary in case the exporter is importing or exporting products that are restricted as per the Foreign Trade Policy (FTP). RCMC registration in India is basically issued by the Export Promotion Council, Export Development Authorities and Commodity Boards that are established by the Director General of Foreign Trade.
Why RCMC Certificate is Important?
As an exporter, you need to obtain an RCMC certificate due to the following key reasons:
- Exporter Recognition: The Registration Cum Membership Certificate (RCMC) symbolizes your legitimacy of being an exporter and is an indicator that you conform to the standards set by the Indian government. This enhances your credibility and helps open opportunities for new businesses and collaborations.
- Benefits and Concessions: The government’s Foreign Trade Policy encompasses various beneficial measures and concessions for the exporters. The RCMC allows the exporters to leverage these benefits and incentives like tax exemptions, duty drawbacks, subsidies etc. This directly helps reduce the operational costs for the company.
- Licensing Requirements: Export business requires various licenses and permits that are essential for export. Obtaining an RCMC registration acts as proof that you are a legitimate exporter and helps you meet the licensing requirements. It acts as an indicator that you have already met the necessary export standards, thus expediting the process of granting other licenses.
- Broader Market Access: Exporters with RCMC have broader access to the markets for Indian businesses and also assist them in showcasing their products in the global markets, fairs and exhibitions. Businesses with RCMC certificates can attract both national and international buyers and boost their global presence.
RCMC Registration Eligibility Criteria
To obtain RCMC Certificate in India, you need to fulfil the following eligibility criteria for RCMC:
- Import-Export Engagement: The applicant should be involved in international trade and must actively engage in the import and export business.
- Import-Export Code (IEC): The applicant should have an Import Export Code (IEC) issued by the DGFT. IEC is important to conduct any import or export business in India.
- Business Details: The applicant needs to mention the specific business details and the primary sector of their operation. For instance, if the company is engaged in the export of spare parts, then it shall obtain approval for the export of spare parts business.
- Specific Approvals: The business should have obtained approval from their sector-specific regulatory board or authority. If a sector does not have any specific board or authority, then approval should be obtained from the Federation of Import Export Organisation (FIEO).
RCMC Registration Process
If you are searching for “How to Get RCMC Certificate”, then let us tell you, once you fulfil the above RCMC eligibility criteria, you can proceed with the following RCMC registration process:
- You need to identify the appropriate Export Promotion Council (EPC) or board dealing with your sector
- You need to gather all the important documents to apply for RCMC certificate
- Having gathered the important documents, you should fill in and file the application form for RCMC. After filling in the application form, upload all the documents and submit the form.
- Pay the requisite RCMC registration fees
- Once the application is submitted and fees are paid, the application shall be processed by the appropriate authorities.
- Once the application is approved, you will receive the certificate. RCMC certificate validity will be of 5 years following which it shall be renewed.
Also, Check "DFIA Scheme"
In a Nutshell
Registration Cum Membership Certificate (RCMC) is important for exporters, conferring a lot of benefits and opening doors for new opportunities. It acts as a validation for the exporter’s business and also creates a sense of trust among its stakeholders. RCMC also becomes necessary to gain benefits under the Foreign Trade Policy (FTP). If you also wish to apply for RCMC, feel free to contact the Exim Advisory.