What are the Benefits of Registration cum Membership Certificate (RCMC)?

The Export Promotion Councils (EPCs) will grant an RCMC to an exporter once they have joined one of the EPCs. The applicant must provide all the essential documentation specified by the EPC to register as a manufacturer or exporter. The majority of EPCs have now made this process paperless and online because of the growing usage of the internet and technology. The Federation of Indian Export Organisations (FIEO), relevant Export Promotion Councils (EPC), or commodity boards typically issue an RCMC. These groups work to support and grow various export enterprises across numerous product categories. This certificate serves as proof that the bearer is listed with the appropriate FIEO or EPC. An exporter’s registration with a certain Export Promotion Council (EPC) and their intent to export goods from India are both verified by the RCMC certificate. Here is a guide to help you comprehend what the RCMC is and how to apply online.

To aid Indian exporters in expanding their businesses in global markets, the Indian government formed Export Promotion Councils. A council’s main duty is to support exporters in the sector it regulates and advertise the product group it deals with. Exporters can take use of the numerous programs and services offered by these authorities by using the Registration cum Membership Certificate (RCMC) supplied by these EPCs. When submitting an application to the appropriate EPC, an exporter seeking an RCMC must list their company. For instance, a craftsperson exporting their products must complete the procedures and submit their application to the EPCH.

Why is RCMC necessary?

Having an RCMC will help your company in numerous ways as an exporter:

• Possibility of claiming numerous benefits under the Foreign Trade Policy 

• Privileges provided by the central excise authorities and customs department

 • Possibility of exporting two or more products that fall into different categories

• The ability to apply for export incentives and subsidies through programs like the Service Export from India Scheme (SEIS)

• Remission of Duties & Taxes on Exported Products (RoDTEP), and Merchandise Export from India Scheme (RoSCTL).

• Benefits under the Foreign Trade Policy (FTP) and Letter of Undertaking (LUT) under GST for exporting products duty-free

List of RCMC-offering export promotion councils

Exporters can receive RCMCs from the following organizations:

Export Promotion Councils (EPCs), Commodity Boards, and Export Development Authorities are registered under the Director General of Foreign Trade (DGFT). The following are some of the export councils that offer RCMC:

  • The Cashew Export Promotion Council of India and the Carpet Export Promotion Council (CEPC)
  • Coffee Board of India; Cotton Textile Export Promotion Council (TEXPROCIL)
  •  Promotion of exports of electronic and computer software
  • The Office of the Development Commissioner for Handlooms
  • The Gems and Jewellery Export Promotion Council (GJEPC)
  • The Export Promotion Council for Handicrafts (EPCH)
  • The Handloom Export Promotion Council
  • The Handicrafts and Handloom Export Corporation
  • Spices Board of India; Rubber Board;
  • Tea Board of India
  • Synthetic and Rayon Textiles Export Promotion Council
  • Council for the Promotion of Wool and Woollen Exports (WWEPC)

Required paperwork for RCMC

There are some common prerequisites for exporters, even though each EPC requires a unique collection of documentation to apply for RCMC:

• An application that has been properly completed and signed by the relevant export council

• Last three years’ services export data certified by the company’s Chartered Accountant (CA)

• Permanent Account Number (PAN) 

• Membership fee payment receipt from the appropriate export council

• Self-certified copy of the partnership deed

• Self-certified copy of the certificate issued by the Registrar of Companies

• GST registration certificate

Benefits available to holders of RCMC certificates

The following advantages are available to these certificate holders, keeping them competitive and giving them the tools they need to easily conduct EXIM activities.

  1. Advanced Authorization Scheme

A government program called the Advanced Authorization Advance Authorisation Scheme (AAS) was introduced as part of the Foreign Trade Policy. As per the plan, no import taxes will be applied to any raw materials used to make exportable goods that arrive in India. AAS seeks to

●  Increasing the visibility of Indian goods in international markets

●  lowering the cost of producing exportable items by offering affordable raw materials

●  Increasing export activity

  1. Duty Drawback Program

The duty drawback program enables exporters to obtain reimbursement for customs duties paid on foreign-sourced goods in the following cases:

Unused imports that are to be processed, handled, or included in other items for export are exported.

  1. RODTEP Program

The Remission of Duties and Taxes on Export Products is referred to as RoDTEP. This program went into effect on January 1st, 2021, and was created to replace the previous MEIS (Merchandise Exports from India Programme). The program seeks to recoup reimbursements for embedded taxes and levies that were paid to relevant authorities. This program is being introduced by the government to increase exports across India.

  1. Scheme for Duty-Free Import Authorization (DFIA)

The Duty-Free Import Authorization (DFIA) scheme guarantees the duty-free import of materials, fuel, oil, and energy sources needed to produce exportable goods.

  1. Zero Duty Export Promotion Capital Goods (EPCG) Scheme

The EPCG scheme permits the duty-free importation of capital goods, including spare parts for pre-production, production, and post-production, as long as an export obligation of six times the amount of duty saved on those capital goods is met within six years of the date the authorization was issued.

The export promotion council’s certificate enables exporters to participate in growth-oriented program that are listed in the Foreign Trade Policy. Once they are registered, owners can take advantage of perks like inexpensive shipping costs, no import taxes on the raw materials needed to make exportable items, and smooth goods transit.

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