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Registration Cum Membership Certificate (RCMC) - All you need to know

Registration Cum Membership Certificate (RCMC) - All you need to know

An Overview / RCMC Full form

You are probably searching for RCMC (RCMC Full form - Registration Cum Membership Certificate) details on the internet because you have just started or want to start your new Export-Import Business or you are working for a New Export Startup Company. Let us tell you that you have taken a great step and we at Afleo Group sincerely hope that your new venture will be a great success.

One more reason for checking this page could be that you are an existing exporter, but due to the latest guidelines, the application process, which was previously manual, has now transitioned to a completely online system. And You may want to understand this new online process better. This Page is suitable for both new and existing exporters.

Now, there might be many questions in your mind as to What is RCMC Certificate? Is it mandatory? What are the benefits? Which council to register with? And Finally what is the registration fees & procedure to apply for RCMC registration. Do not worry, this article of ours is a complete guide on RCMC (Registration cum Membership Certificate) for beginners and it will answer all your questions.

So let’s get started.

What is RCMC?

The term RCMC suggests that it is a certificate related to registration or membership.

Now, let's understand with whom you need to obtain this membership. You need to obtain membership with the Export Promotion Councils/Commodity Boards

But what are Export Promotion Councils/Commodity Boards? These are organizations recognized by the government, and their primary role is to promote exports in a specific product category or sector. Currently, there are a total of 39 Export Promotion Councils/Commodity Boards. For example, for agricultural items, there is APEDA, for engineering items, it's the Engineering Export Promotion Council (EEPC), for chemicals, it's CHEMEXCIL, for pharmaceutical items, it's PHARMEXCIL, and so on. Additionally, all these councils have an apex body, which is the Federation of Indian Export Organisations (FIEO). You can find the list of all 39 Export Promotion Councils in Appendix 2T of the Foreign Trade Policy (FTP). The Entire list can be accessed here - List of all Export Promotion Councils [EPC]/ Commodity Boards/ Export Development Authorities]

So, if you become a member or register with any of these 39 councils, it results in the issuance of an RCMC Certificate. It's essential to note that if you register with a local Chamber of Commerce, it is not referred to as an RCMC.

Benefits of RCMC Registration

There are several benefits to obtaining RCMC (Registration Cum Membership Certificate) registration, which we will now discuss:

Exposure and Knowledge:

RCMC registration provides you with exposure to specific product sectors because these councils operate sector-wise. For new exporters, this exposure can offer valuable product knowledge. If you are facing any hurdles, these councils can provide initial handholding and guidance on export-related procedures and documentation.

Government Liaison:

For existing exporters, these councils act as intermediaries between the exporting community and the government. If you need to convey a message, seek clarifications on notifications, or if you are waiting for a particular refund for an extended period, these councils can help you communicate with the government effectively.

Facilitating Trade Events:

Export Promotion Councils often organize Buyer-Seller meets and exhibitions. They also share live inquiries and lists of potential buyers who may be interested in your export products. This can be a significant advantage for finding new markets and customers.

MAI and PMS Scheme:

RCMC registration opens doors to benefits under schemes like MAI (Market Access Initiative) and PMS (Procurement and Marketing Support). Under these schemes, you can receive reimbursement for a portion of your marketing expenses. For instance, if you attend an exhibition, your airfare, stall costs, registration fees, and more can be subsidized to a significant extent.

Stay Informed:

Export Promotion Councils keep you updated with the latest developments in the export business. They send you regular notifications and provide information about policy changes, ensuring that you are well-informed about the industry's evolving landscape.

Overall, RCMC registration offers a range of advantages, from knowledge and exposure to government liaison, facilitating trade events, financial support, and keeping you abreast of the latest industry updates.

Is RCMC mandatory for Export?

It's important to note that RCMC (Registration Cum Membership Certificate) is compulsory only for certain products. If your export product does not fall under these specified products, RCMC is not mandatory. This means that your export shipments will not be halted for lacking an RCMC in such cases.

For the export of some products, it is mandatory to have an RCMC with their respective EPC’s only, the list of all such products is as below:
  • Agricultural Products - Agricultural and Processed Food Products Export Development Authority (APEDA)
  • Marine Products – The Marine Products Export Development Authority (MPEDA)
  • Coffee Products–Coffee Board of India
  • Tea – Tea Board of India
  • Spice Products – Spices Board of India
  • Leather Products - Council For Leather Exports.
  • Jute Products– Jute Board of India.
  • Silk Products - Silk Board of India
  • Coconut Products - Coconut Board of India
  • Coir Products - Coir Board of India
  • Rubber Products – Rubber Board of India
  • Tobacco Products - Tobacco Board of India

Therefore, RCMC is not mandatory for products that are not listed above. However, we would recommend you to get an RCMC Certificate if you are serious in your export business endeavors.

Also, if you wish to benefit from export promotion schemes like EPCG (Export Promotion Capital Goods), Advance License, DFIA (Duty-Free Import Authorization), RCMC becomes compulsory.

It's also worth mentioning that for claiming benefits under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) and RoSCTL (Rebate of State and Central Taxes and Levies), RCMC is not mandatory.

There are specific situations in which RCMC is compulsory, such as when applying for an LUT (Letter of Undertaking) Bond for GST purposes with the GST department. Additionally, if you are a merchant exporter and intend to procure goods at 0.1% GST rate from a manufacturer exporter, RCMC is mandatory in such cases.

Please note that RCMC is not required for importers; it is exclusively for exporters.

How to select Export Promotion Council/Commodity Board for RCMC Registration?

You might be wondering how to choose which council to obtain an RCMC (Registration Cum Membership Certificate) from, given the numerous councils available. The steps are quite simple:

Reference to Appendix 2T of FTP:

Firstly, refer to Appendix 2T of the Foreign Trade Policy (FTP). This appendix contains a list of councils and specifies which products or sectors each council deals with.

Identify Your Main Line of Business:

Identify which products fall under the main line of business you are engaged in. Check which council covers those products, and that's the council you should register with.

Multiple Products:

If your main line of business is not well-defined or you deal with multiple products based on demand, you don't need to obtain RCMC from each council separately. In such cases, you can register with FIEO (Federation of Indian Export Organisations) and categorize yourself as a multi-product exporter.

Products Not Covered:

If your product is not listed in Appendix 2T and is not covered by any council, you can still obtain an RCMC from FIEO.

If you have any doubts about identifying the relevant council for your export product, please feel free to write in the comments section, and we will help you determine the appropriate council.

How to get an RCMC Certificate from DGFT online?

Before 2022, the application process for RCMC (Registration Cum Membership Certificate) was manual. If you needed to obtain RCMC from any council, you had to contact them individually. Each of the 39 councils had different application forms, and some required online submissions while others used offline forms. This created a lot of confusion for exporters.

However, to facilitate ease of doing business, the application process for RCMC has been streamlined. Now, if you want to obtain RCMC from any council, you can do so through the DGFT (Directorate General of Foreign Trade) website. There is a standardized application form where you select the council and proceed.

Documents required for RCMC Registration

Here are the basic documents required for an RCMC application:
  • DGFT Digital Signature (DSC) or application can also be submitted using Aadhar OTP.
  • Application Form.
  • Business Registration Proof – GST, Udyam Aadhar (MSME).
  • Import-Export Code (IEC).
  • Company PAN Card or PAN Card of the Proprietor.
  • The preceding year’s or the last 3 years' export turnover figures certified by a Chartered Accountant (CA).
  • In the case of no exports, a NIL certificate should be obtained.

RCMC Renewal / Amendment in RCMC

Membership for RCMC is granted for the period from April to March of each financial year. This means that if you apply for RCMC in December of a particular year, your annual RCMC will be valid until the following 30th March only. You will need to renew the RCMC again starting from April to continue your membership for the next financial year.

This Process of RCMC Renewal also happens online on the DGFT website, where you can select the Council of your choice, pay the requisite fees and renew your RCMC membership.

Also Amendment in RCMC is possible. Changes in address and director details or Changes in Export Products List are possible in the RCMC (Registration Cum Membership Certificate). If there are changes in these details, the exporter should submit a request for amendment online on the DGFT Portal within a month of such changes taking place. This ensures that the RCMC reflects accurate and up-to-date information related to the exporter's address/directorship and other important details.

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