In today’s fast-growing international market, India’s export segment provides endless possibilities for businesses to grow. For trades looking to export, RCMC or the Registration-Cum-Membership Certificate plays an essential role. This certificate is important for exporters who want to gain recognition within an adapted export community. It not only certifies your business as a reliable exporter but also opens doors to many possibilities in global trade.
What is RCMC or Registration Cum Membership Certificate?
It is a business document required for the export and import of restricted goods as per the Foreign Trade Policy (FTP). It is provided by delegated authorities like Export Development Authorities, Export Promotion Councils (EPCs), and Commodity Boards.
The purpose behind issuing this document is to ease the development of exports. It depicts that the exporter is listed with a company or agency approved by the Indian Government. It offers exporters access to different government advantages and support services. RCMC holders have the right to apply for licenses to export and import restricted products.
Reasons Businesses Require RCMC for Export
1. It is Needed for Certain Products
When shipping certain products to foreign countries, such as agricultural products, spices, tea, leather, and others, you require an authentic Registration Cum Membership Certificate (RCMC). You could get delays due to customs, fines, or even have your shipment obstructed altogether. Businesses do not want their products to accumulate dust at the port. So, this certificate is your insurance coverage next to those problems.
2. Access to Government Backed Schemes
The government runs schemes such as Export Promotion Capital Goods (EPCG) and MAI (Market Access Initiative), which are particularly made to help exporters like you flourish. But to access them, you generally need RCMC in hand.
Say you are getting ready to show your goods at the largest food trade show in Dubai to look for buyers to export from India. Schemes such as MAI could compensate for a chunk of your expenditures– airfare, booth charges, etc. That additional amount can create a big difference for small businesses. So, RCMC is your license to these programs, offering you a great chance in the competitive international market.
3. Financial Benefits Other than Schemes
The Registration Cum Membership Certificate’s advantages continue further than those government schemes and programs. It can even affect your regular cash flow.
Say you are a merchant exporter, signifying you purchase and resell products for export, then this certificate can be your saving charm. It allows you to source goods at a much lower GST cost, making you more competitive on costs with foreign buyers.
4. Networking and Lead Creation
In the export world, it is frequently not just about what you sell but who you know. Consider your RCMC as your ticket to a wider network. EPCs often arrange trade shows and buyer-seller meets in India and overseas.
These events are where connections occur. Suppose showcasing your goods directly to prospective buyers or getting an on-the-spot response about what global markets are searching for. That access is precious, specifically if you are an exporter attempting to make a name for yourself.
5. The Reputational Growth
When a foreign buyer is selecting suppliers, they wish to reduce risk. Considering that you hold a proper Registration Cum Membership Certificate gives a signal: you are deliberate about exports, and you play by the regulations. That type of validity matters.
Now, think about it from the buyer’s point of view. Would you feel more comfortable handling a company that is part of an identified EPC or an undiscovered entity? This certificate can be an aspect that makes you stand out in a congested marketplace, specifically when making those primary relationships.
How to Apply for RCMC?
To apply for this certificate, you need to submit the filled application form ANF 2C to the EPC that relates to your export goods. For instance, if you are a tea exporter, you will apply to the Tea Board, and if you are a garment exporter, you will apply to the AEPC or Apparel Export Promotion Council. Broadly, there are two classes of exporters – manufacturers and merchants. To list as a manufacturing exporter, you have to give proof of your current manufacturing unit.
The information needed in the form is somewhat simple:
- You need to address the application to the related EPC and fill in the name, registered address, branch and factory addresses of your business.
- You have to specify your IEC Code and its information, in addition to details of your manufacturing facility, such as factory registration, industrial license, etc.
- You will also require the certificate number and your export position holder certificate for Trading House, Export House, Super Star Trading House, or Star Trading House.
- You will have to state the product for which the registration is required and specify your key business line.
To know which EPC, Commodity Board, or Authority your product comes under, you can check the updated Annexure 2T of the DGFT, which has the list of the EPCs, Boards, and Authorities together with their contact information and details of products coming under their domination.
Documents Required for Registration
- PAN or Permanent Account Number.
- IE Code provided by the licensing jurisdiction.
- MOA or Memorandum of Association.
- GST certificate.
- Trusts, institutional or business entities need the trust deed.
- A self-validated copy of the partnership deed is required for partnership businesses and individuals.
- The details of the previous three years related to the company’s foreign exchange returns provided by the company’s CA are mandatory.
- A power of attorney is needed in favour of the signing authority if the name of the signing authority is not there in the partnership deed, IEC, trust deed, or MOA.
Final Words
RCMC registration is essential for Indian exporters. It gives exporters several advantages and support services. The registration procedure is easy, and the introduction of e-RCMC has made it simpler and more effective. Certain documentation requirements must be fulfilled to get this certificate. Proper submission of all the required documents eases the registration process. Conforming with definite regulations is important for exporters to ignore any penalties.