RCMC Registration

The Registration Cum Membership Certificate (RCMC) serves as a crucial authorization document for the importation or exportation of restricted products in accordance with the Foreign Trade Policy (FTP). Typically, this certificate is issued by Export Promotion Councils (EPCs), Commodity Boards, and Export Development Authorities established under the auspices of the Director General of Foreign Trade (DGFT) for each respective restricted product.

Furthermore, the RCMC acts as evidence of an exporter’s membership or registration with a specific EPC, commodity board, or export development authority. It holds paramount importance in availing concessions offered under FTP for the import or export of restricted goods.

The Registration-Cum-Membership Certificate (RCMC) serves as validation for an exporter engaged in transactions involving products registered with an agency or organization authorized by the Indian Government. This certificate confirms the exporter’s registration with the designated agency or organization.

Why RCMC Registration?

The RCMC registration fulfils various functions.

• Primarily, it grants authorization for importing or exporting products categorized as restricted under the Foreign Trade Policy (FTP).
• Additionally, it serves as proof of an exporter’s membership or registration with a designated Export Promotion Council (EPC), commodity board, or export development authority.
• Furthermore, it is essential to access concessions offered under FTP for the import or export of restricted goods.

Criteria for Registering RCMC Online

• Exporter or Merchandiser (Merchant)
  Before applying for RCMC registration, it is imperative for the exporter or trader to ensure that their business operations involve both imports and exports. This criterion stands as a fundamental requirement for initiating a manufacturing venture in India. Moreover, the exporter is obligated to demonstrate their application for an Import Export Code (IEC) issued by the authorized authority. The issuance and regulation of the IEC are overseen by the Director General of Foreign Trade (DGFT).
• Business Main Line Declaration
  Within the Business Main Line Declaration, the exporter or trader is required to delineate their principal area of business activity. For example, if their primary focus lies in trading coffee and tea products, they are obligated to engage with the Tea and Coffee Promotion Board accordingly. Should there be no corresponding export promotion board or regulatory agency associated with the commodities handled by the exporter, this absence must be explicitly acknowledged and documented.
• Consent from the Board of the FIEO
  The applicant is required to obtain the requisite board permission or clearance from the Federation of Indian Export Organizations (FIEO). In instances where there is no specialized board available for a particular product, the applicant must seek approval from FIEO. Furthermore, securing authorization from FIEO is a mandatory prerequisite for RCMC registration.

Required Documentation for RCMC

The RCMC application form necessitates several obligatory documents to be submitted alongside it, which include:

• Partnership Deed: Self-certified copy for partnership companies and individuals.
• Permanent Account Number (PAN): Issued by the competent authority.
• IEC Number: Issued by the regional licensing authority.
• MOA (Memorandum of Association): For corporate, institutional, private limited, or limited companies.
• Certificate of Registered Office Change: Issued by the Registrar of Companies (ROC) for any changes in the registered office.
• Trust Deed: For institutional, trusts, or corporate entities.
• Certificate of Registered Office Change (if applicable): Another certificate from the Registrar of Companies regarding changes in the registered office.
• Board Resolution or Power of Attorney: If the signing authority’s name is not mentioned in the IEC, MOA, partnership deed, or trust deed, a board resolution or power of attorney in favor of the signing authority is necessary.
• Certified Data on Foreign Exchange Earnings: Certified data on the company’s foreign exchange earnings over the past three years, provided by the company’s-chartered accountant, is required.
• GST Registration Certificate: A copy of the GST registration certificate is necessary for the RCMC application.

Types of Exporters/Importers Covered – RCMC

The online RCMC application process caters to a diverse range of exporters and importers, encompassing:

• Regular Membership: Tailored for businesses venturing into the export and import realm, seeking fundamental membership benefits.
• Premier Trading House (PTH) Membership: Designed for companies wielding a significant stake in India’s overall exports and actively contributing to the nation’s global trade endeavors.
• Associate Membership: Geared towards entities entrenched in the export-import domain for a substantial duration, boasting established business operations. The fee for associate membership surpasses that of regular membership and encompasses a nominal GST component.
• Trading House (TH) Membership: Targeting companies actively involved in import and export endeavors, boasting an annual turnover of at least INR 100 crores.
• Star Export House (SEH) Membership: Intended for companies showcasing consistent export expansion and noteworthy foreign exchange earnings.

Compliance with RCMC

Adherence to the Registration cum Membership Certificate (RCMC) is obligatory for exporters aiming to engage in diverse government initiatives and schemes linked to exports. Here are key compliance obligations concerning RCMC:

• RCMC Renewal: RCMC validity spans five years, necessitating timely renewal. Failure to renew can lead to non-compliance issues.
• Annual Export Data Submission: It’s imperative for exporters to send their annual export data to DGFT as stipulated. Non-compliance may trigger RCMC suspension or cancellation.
• Conformance to Export-Import Policy: Exporters must align with export-import policy directives and conditions outlined by the Directorate General of Foreign Trade (DGFT) concerning RCMC.
• Adherence to Customs Regulations: Exporters must uphold customs regulations and protocols governing the exportation of goods. Deviations could result in penalties and legal repercussions.
• Compliance with Quality Standards: Exporters must comply with quality standards mandated by the importing country for exported goods.
• Compliance with Foreign Trade Regulations: Exporters are mandated to observe various foreign trade regulations pertaining to export activities, including adherence to export control regulations, sanctions, and embargoes.
• Record Maintenance: Exporters must diligently maintain records associated with their export transactions, in line with DGFT’s record-keeping mandates.

Ensuring compliance with RCMC requisites is pivotal for exporters to partake in assorted export-related schemes and programs while sidestepping penalties and legal entanglements.

Advantages of RCMC

• Obtaining a Registration Cum Membership Certificate (RCMC) provides exporters with numerous advantages. Some of these benefits include:
• Facilitation in import and export: RCMC simplifies the process of importing or exporting restricted goods by validating the exporter’s authenticity and the authenticity of their products.
• Streamlined customs clearance: RCMC reduces the time and effort required for customs clearance by affirming the exporter’s membership with a recognized authority and their adherence to government regulations.
• Access to export promotion schemes and benefits: RCMC serves as a prerequisite for accessing export promotion schemes and benefits such as Duty Drawback, the MEIS (Merchandise Export from India Scheme), and the Market Access Initiative (MAI).
• Access to market information: RCMC enables exporters to stay informed about the latest market information and developments through export promotion activities and programs organized by Export Promotion Councils and Commodity Boards.
• Enhancement of credibility: RCMC enhances the credibility of exporters by demonstrating their compliance with government regulations and standards.