Overview of RCMC Registration
The abbreviation RCMC stands for registration cum membership certificate. This certificate serves as a permission for the company to conduct exports and take advantage of current international trade policy advantages. The Federation of Indian Export Organizations issues the RCMC certificate (FIEO).
Apart from that, the Export Promotion Council of India issues the certificate (EPC). The issue of this certificate is likewise under the control of community boards. One of the key goals of issuing this type of certificate is to encourage India's export business. Apart from that, obtaining such a certification would lend credibility to public transactions.
An organization or institution that has been exempted from the need for an export and import license does not require a certificate of this type. The validity of this certificate is five years.
This type of certificate is required under the Indian government's export promotion policy. The certificate would be granted by the export promotion council that was in charge of the project (EPC).
The FIEO is regarded as India's export promotion council when it comes to obtaining RCMC registration. To become a member of the FIEO, a company or organization must first submit an application.
Membership Types for RCMC Registration under the FIEO
Under FIEO Ordinary Membership, there are two forms of membership for RCMC Registration.
The name implies that the membership is limited to the most basic level. This type of membership is for a company that is just starting out in the export and import market.
The associate membership is for companies who have been in the export and import sector for a long time. The fees for associate membership are based on the fee plus a small percentage of GST.
The Advantages of RCMC Registration
The FIEO is the primary regulatory body for RCMC registration. As a result, the exporter would have to seek for membership with the FIEO. The RCMC is the registration provided by the FIEO. The following advantages must be considered while applying for RCMC registration:
International Trade Policy
An exporter who registers with the RCMC is eligible for some of the incentives provided by the country's international trade policy. Aside from that, the exporter will receive various types of updates on foreign trade policies.
Export promotion is important.
Export marketing is critical in India. It is critical to encourage exports in the country in order to engage in the growth of many industries. Obtaining this registration would immediately increase foreign exports. One of the benefits of obtaining this registration is the ability to secure international expansion policies relating to the country's exports. For example, the government has launched the Atmanirbhar Bharat programme. The government wants Indians to buy more things made in India under this programme. Self-sufficiency can be achieved through such systems. The number of exports from India would also increase as a result of this strategy.
Using a Variety of Schemes
The exporting firm or company can take advantage of a variety of FIEO initiatives by registering. Any unregistered firms or businesses would be unable to do so.
Government regulations are followed.
An entity or company that obtains this registration will be in compliance with the government's norms and regulations.
FIEO's latest news
Apart from receiving various types of discounts from the FIEO, information on India's foreign trade strategy would also be supplied. Individual exporters can still register as individual exporters if they want to profit from the FIEO but don't want the RCMC certificate.
RCMC Registration Eligibility Criteria
When applying to the FIEO for the RCMC certificate, the applicant must meet the following criteria:
Merchandiser or Exporter (Merchant)
To begin, the applicant must ensure that the business being conducted is one of exports and imports. One of the most important criteria for starting an export business in India is to have a bank account. Apart from that, the exporter must guarantee that the Import Export Code (IEC) has been applied for with the appropriate government. The DGFT is the IEC authority (Director General of Foreign Trade).
Main Line of Business Declaration
The principal line of business for the exporter or merchant must be declared. If the major line of business is coffee and tea, for example, the Tea and Coffee Promotion Board's approval is required. If the products are not covered by any sort of export promotion board or other authority, the FIEO must grant permission to export them.
The FIEO's Board of Directors has given their approval.
The applicant must ensure that the appropriate consent is obtained from the appropriate board or FIEO. If there isn't a specialized board for a certain product, the applicant will have to submit to the FIEO for approval. The FIEO must give his or her approval for the same.
How can I register for Ordinary Membership with the RCMC?
Under the RCMC registration system, there are two types of membership. If an individual wishes to apply for ordinary membership, the following measures must be taken into consideration:
Go to the FIEO's website to learn more
The initial step for the exporter or merchant is to go to the website https://www.fieo.org/index.php. The applicant then has the option of clicking on the membership tab. Then proceed to the section on how to apply for RCMC registration and endorsement. Aside from that, the application can be downloaded through the FIEO website's downloads tab.
To apply for membership online, go to Online Membership Application.
Under the main tab membership, there will be sub tabs. The applicant must select application from the drop-down menu. The applicant will be routed to another website where they will be asked to provide their credentials. The username, password, and import-export code will all be included (IEC Number).
Fill in the details on the form.
There will be a tab named regular membership on the membership tab. The exporter is required to submit membership information in normal circumstances. The name, address, and status of the export house (whether the exporter is a One Star Export House*/Two Star Export House*/ Three Star Export House*/ Four Star Export Houses*/Five Star Export Houses*/ Service Provider/Registered Member/ EPC/ Commodity Board/ Association/ Chamber of Commerce/ Institutes) will be included in this information.
Provide the Required Information
The mandatory fields would be the firm's name and the type of exports it performs.
Enter the Entity type.
In the following stage, the applicant must specify the entity type in the supplied box. This will reveal if the company is a partnership or a corporation.
Provide details about key management figures.
The applicant must next supply information about the entity's top management executives in the next step. This would contain information about the company's directors and stockholders.
Send a letter of authorization.
The applicant must provide a letter of authority as the final stage. The authority representing the applicant in the FIEO on the application will be indicated in this letter. The applicant is required to provide this information.
How do I become an Associate Member of the FIEO?
To apply for an associate membership, you must follow the requirements below:
The application form can be downloaded here
In order to apply for associate membership, the candidate must first download the application.
Indicate the type of company you're in.
The applicant must then specify the type of business being examined. The applicant must describe the type of business and the manner in which it operates in this section.
Fill in the business-related information.
The applicant must submit information about the company. This would include the IEC number, entity data, and other business-related information.
Documents should be provided
Along with the form, the documents must be uploaded or added.
Provide the Authority Letter.
The applicant must produce the letter of authority as the final step. In the FIEO for RCMC registration, the letter of authority will state who will represent the applicant.
RCMC Registration Documents
For the above license, the following documents are required:
- Obtain a copy of the applicant's Import Export Code. The applicable licensing body or authority must self-certify the copy of the IEC code.
- A cross cheque, a demand draught (DD), or a pay order in the name of the Federation of Indian Export Organizations is preferred.
- This DD or cross check must be used to pay for annual membership dues. Rule 6 I of the Rules & Regulations of the Memorandum & Articles of Association of FIEO states that such rules must be in compliance.
- The norms of the particular authority must be followed when writing an authority letter. A chartered accountant must attest and sign this authority letter. The seal must be accompanied by the bank's unique registration number.
- Aside from that, self-attested copies of relevant certificates, such as the SSI certificate, industrial licenses, import-export permits, and other specifications, are required. This would only be the case if it was applicable.
- If the company is classified as an industrial house, self-certified copies of the documents must be given.
- GST-related information, such as the GSTIN.
- The applicant must also give the last three years' export turnover.
- Foreign exchange earnings for the last three years are listed here.
- When applying for RCMC, an exporter must specify his principal business. The Export Promotional Council must get the RCMC, which is dependent on the nature of the firm.
- If a person does not belong to any category of export promotion council, he or she might apply for a certificate as FIEO (Federation of Indian Exporters Organization).
- Those who are multi-product exporters who are not registered with any EPC, or if the stream of business that is necessary has not yet been determined, can apply for RCMC registration from FIEO.
- RCMC can be obtained from Shellac and Forest Product Export Promotional Council for exporters with their head office/registered office in the north-eastern states, unless the product is handled by APEDA, Spices Board, or Tea Board.
- Registration Cum Membership Certificates are issued to exporters of handicrafts and handloom products from the state of Jammu & Kashmir.
RCMC Registration Competent Authorities
- The Federation of Indian Exporters Organizations (FIEO) or a relevant Export Promotion Council can help exporters achieve RCMC registration.
- RCMC registration can be obtained from FIEO by status holders.
- If the export product is not covered by any Export Promotion Council, RCMC registration can be obtained.
- If the exporter works with forest produce and value-added products, RCMC registration should be obtained through Shellac and Forest Products Export Promotion Council (SHEFEXIL).
- Exporters dealing with software must register with the EPC (Electronic and Computer Software Exporters Council) (ESC).
- Exporters of the 14 services listed must register with the Services EPC, while exporters of all other services must register with FIEO.
What is the need for RCMC?
- For the purpose of obtaining permission to export (or import) any restricted item.
- For the purpose of claiming the various benefits provided by the Foreign Trade Policy.
- For the Customs and Central Excise authorities' benefits.
Notification of a change in the RCMC holder's company constitution
If an exporter's ownership, constitution, name, or address changes, the exporter must notify the relevant registering body within one month after the change. If there is a valid reason for the delay, the registering authority may allow it, and the exporters must give the relevant proof outlining the cause for the delay.
Compliance with the RCMC
- Every exporter is required to submit a quarterly return/details of his or her shipments of various goods to the registering authorities.
- If an exporter is registered with FIEO, he is required to submit quarterly reports in the format provided by FIEO.
Violations carry a penalty
After giving the exporter a sufficient opportunity to be heard, the Export Promotional Council may de-register the exporter for a specific term for violating registration terms.
The registering authority has the authority to de-register the RCMC holder if the conditions of registration are not met. The RCMC holder is supplied with a reasonable show cause notice prior to de-registration, as well as a reasonable opportunity to be heard and make a representation against the proposed de-registration.
Objection to De-registration
Against de-registration, the aggrieved party, i.e., the RCMC holder, has the right to appeal to the DGFT within 45 days after the de-registration decision, and the appellate authority's final judgement will be valid.
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Frequently Asked Questions
The registration certificate or licence issued by the RCMC would be valid for 5 years. The financial year commencing on April 1st would be used to calculate the validity period.
Yes, the Central Government empowers various commissions to issue the aforementioned certification. This would be determined by the type of products being considered for export.
- Registration requirements
- Notifications of registration
- Flight discounts both domestically and internationally.