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RCMC Certificate for Exporters: Procedure, Documents, and Benefits

calendar05 Jan, 2022
timeReading Time: 4 Minutes
RCMC for Indian Exporters - Procedure, Documents, and Benefits

RCMC certificate is a legal document granted by the export promotion council mentioned under the Foreign Trade Policy. It serves as a certificate that legalizes exporters involved with the products registered with authority or agency of the government. Under the FTP, exporters are mandated to register with respective export promotion council mentioning their core business. RCMC comes with a validity of 5 years and it ensures various perks and advantages for the EXIM businesses. In this write-up, you would come to know everything about RCMC certificate from export promotion council.

Presently, there are 26 Export Promotion Councils & 9 commodities boards operating pan India. Export Promotional Councils operate under the aegis of central government and have sole authority to grant RCMC certificate to the exporters. Every Export promotion council categorizes itself depending on the type of products. Exporter of products that fall outside the ambit of these councils can secure RCMC from FIEO

Guidelines for Registration

  • While applying for RCMC certificate, an applicant must declare the core business.
  • For exporters dealing with the shipment of multiple products and having registered offices in north-eastern states, RCMC can be secured from Shellac and Forest Product Export Promotional Council, unless it is for the products regulated by the institutions like APEDA, Spices Board, and Tea Board.

How to apply for RCMC from the Export promotion council?

Any exporter can avail RCMC certificate from the respective EPC by submitting a prescribed application along with the requested set of documentation discussed below:

Note: Recently, the DGFT i.e. Director General of Foreign Trade has unveiled a single-window portal for RCMC/Registration Certificate (RC) related processes including application for new/renewal/amendment of RCMC/RC.

The DGFT has prompted exporters to furnish applications for RCMC/RC or its renewal via this portal w.e.f 6th Dec 2021. With the launch of this portal, the authority aims to digitize and thus speed up RCMC/RC-related processes.

Read our article:How to Start Export Business from India?

Documents for obtaining RCMC certificate from respective Export Promotion Council

Common documents required to secure RCMC from the export promotion council includes;

  • Application in the prescribed format (download it from the authority’s portal)
  • A self-certified copy of the import-export code (IEC) granted by the Directorate General of foreign trade.
  • A declaration printed on duly notarized non-judicial stamp paper
  • A self-attested copy of MoA and AoA/ Partnership deed/Incorporation certificate, depending on the type of business structure
  • Exporter cum manufacturer would require submitting the certificate like Industrial license/letter of intent/SSI certificate granted by the governing authority.
  • Self-attested copy of factory license, EPFO registration, ESIC certificate granted by a respective line of authorities.
  • DD/Cheque/Pay order of amount demanded by the export promotion council

Overview on RCMC compliances

Every exporter shall provide export-oriented return/details to the concerned registering authority. In case the exporter has FIEO registration, then he shall also file quarterly returns to FIEO in the standard format

Intimation of change in the constitution of business of RCMC holder

In case there is a change in constitution, ownership, name, or address of exporter, the exporter shall the same to the respective authority within one month of the change.

Penalty for violating registration’s terms and conditions

In case of breaching registration’s terms and conditions, the EPC may restrain the exporter from executing their operation by temporarily canceling the registration. The decision regarding the registration cancellation would be duly shared with the defaulter so that he/she can put the case before the hearing committee.

List of benefits accessible to RCMC certificate holders

RCMC holders are eligible to access the following benefits that keep them competitive and provide required aids to carry on EXIM activities with ease.

Advanced Authorization

Advance Authorisation Scheme (AAS)[1] is a government scheme released under the Foreign Trade Policy 2015-2020. The scheme ensures zero import duty on raw materials coming to India for producing exportable products. AAS aims at;

  • Improving presence of Indian products in the global marketplace
  • Decreasing production cost of exportable goods by providing cheap raw material
  • Boosting export activities

Duty Drawback Scheme

The duty drawback scheme enables exporters to secure a refund on paid custom duty on goods coming from abroad, where those are:

  • to be processed, treated, or incorporated in other goods for export
  • are exported unutilized since importation.

RODTEP Scheme

RoDTEP is an abbreviated term of Remission of Duties and Taxes on Export Products. This scheme came to effect on Jan 1st, 2021, formed to supersede the prevailing Merchandise Exports from Indian Scheme, MEIS. The scheme aims at recovering refunds on embedded taxes & duties paid to concerned authorities. Government launches this scheme to boost export activities pan India.

Duty-Free Import Authorization (DFIA) Scheme

Duty-Free Import Authorization (DFIA) Scheme ensures duty-free import of inputs, fuel, oil, energy sources which is required to manufacture of exportable goods.

Zero duty Export Promotion Capital Goods (EPCG) scheme

Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre-production, production, and post-production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under the EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issue date.

Apart from these benefits, the RCMC holders have seamless access to trade fairs and exhibitions hosted on a domestic and international platform.

Conclusion

RCMC certificate from the export promotion council helps exporters to avail growth-driven schemes mentioned under Foreign Trade Policy. Once registered, the RCMC holders can avail the benefits like low-shipping cost, zero import duty on input material used in exportable goods, and seamless transit of goods.

Read our article:The Requirement for Import Concerning IEC with RCMC

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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