If you are planning on importing the products into India then you must be having an idea about the RCMC, it stands for Registration-cum-Membership Certificate. A Registration Cum Membership Certificate (RCMC) is a certificate that is issued by the Federation of Indian Export Organizations (FIEO) and the Export Promotion Councils (EPC) or the Commodity Boards – these are the primary organizations and agencies that work for the development and promotion of export businesses and they are so authorized by the Government of India.
A question that revolves around most of the people who are involved in the shipping industry is whether the RCMC is mandatory for the requirement of import. Hence, in this article we will know more about the requirement of Import concerning IEC with RCMC.
Why is RCMC Required?
The Export Promotion Council is working under the Government of India and helps with the promotion of exporting products and services. The organisation works by encouraging the export industry, organising trade shows and by acting as a link between the Government and the traders.
The Registration cum Membership Certificate acts as a registration document for helping exporters become the members of the EPC. Hence, any individual with a valid IEC number can also apply for an RCMC license. On the other hand, the exporters not having the IEC Number is required to first apply for it before trying to become a member of the EPC.
The license basically helps the exporters to avail the benefits and advantages as the Government provides through the EPC. The exporter will have to apply for the RCMC certificate:-
- If the exporter is looking for any authorization to import or export any of the restricted items.
- If the exporter has plans to claim the various benefits which is under the Foreign Trade Policy.
- If the exporter is looking for advantages and benefits that is offered by the Customs and Central excise authorities
It is to be noted that the RCMC will still be applicable when the exporter is planning to export two or more products that will fall into the different categories and therefore different EPCs.
Read our article:What is the Format of IEC Application?
Are both the IEC & RCMC is required for Importing?
As earlier mentioned, the RCMC license assists people to gain membership into the EPC for those who are working within the shipping industry. EPC has nothing to do with incoming products as EPC works to promote exporters. As a result, the license of RCMC is linked to exports and not with the imports into India.
Nonetheless, the Importer-Exporter Code (IEC) is a compulsory registration number that all the businesses dealing with the import or export products must-have. Hence, no import or export can enter or leave India without the IEC number of the owner unless it is specifically exempted. Therefore, both IEC with RCMC is required for importing products although it is not mandatory but the person can only avail the benefits if he has both IEC with RCMC.
Who Issues the RCMC?
The Registering Authorities issues the certificates to the exporters and importers. They include the Export Promotion Councils (EPCs); Export Development Authorities and the Commodity Boards. These bodies are authorized by the DGFT (Director General of Foreign Trade) to act as the Registering Authorities. Presently there are total 35 organizations that perform as Registering Authorities. They consist of:-
The most important plan of these bodies is to encourage and improve the development of exports in India. They are divided into various sectors, each of them is accountable for the particular group of products.
Registration Procedure of RCMC
The application form for registration of RCMC is Form ANF – 2C and it needs to be filled and submitted with the ESC. It will contain the following details:-
- The Name and Address of the relevant Export Promotion Council.
- The Name of the Applicant concerned.
- The complete Registered Office Address of that Applicant.
- If there are any branches then name and address of that branch.
- The details on the Import Export Code number.
- The number on the Export House Certificate.
- The Products for which registration is required.
- To declare the main business line.
Documents to be Submitted along with RCMC Registration Form
- The copy of Import Export Code issued by the DGFT that must be self attested.
- In case of a Partnership Firm, the Copy of the Partnership Deed.
- In case of a Company, the Copy of the Articles of Association (AOA) and the Memorandum of Association (MOA).
- In case of a Trust, the Copy of the Trust Deed.
- Where there are Partners and Directors, then details of the names, the residential addresses, contact numbers and other important details of the same as the case may be.
- For the manufacturing section, the copy of the proof that evidences that the applicant is a manufacturer which shall include the SSI Registration and SIA Certification.
- Preceding year’s export turnover figure that is certified by a Chartered Accountant is compulsory. If in case there were no exports, then NIL certificate is to be obtained.
- The Annual Membership Fees appropriate to be paid through Cheque payable or via Demand Draft or drawn in the favor of “Electronics and Computer Software Export Promotion Council” should be payable at New Delhi.
IEC with RCMC is important together as RCMC basically helps the exporters to avail the benefits as given by the agencies that aid in developing and promoting India’s export business.
The RCMC certificate is valid for the period of five years and signifies that the particular business has an FIEO or EPC registration. However, on availing the RCMC license, it helps businesses to avail numerous benefits and advantages, thus making it an essential document.
Read our article:Can You Import Without IEC number? Let’s Figure it Out!