RCMC Application and Compliances under RCMC in India

Soumya Bajpai

24 Nov, 2020

The RCMC is a certificate which requires mandatorily by all firms or companies who want to apply for the Import Export Code i.e. IEC and wanted to avail concessions/ benefits under the Foreign Trade Policy like duty drawbacks and duty credit scrips. The full form of RCMC is Registration Cum Membership Certificate.

However, this certificate is not necessary for traders with exemptions under the Export-Import Policy. The competent government authority issued the RCMC registration certificate. The validity of the RCMC license lasts for total 5 years from the 1st April of the licensing year (Issuing Year) up to 31st March of the 5^th licensing year unless specified otherwise.

RCMC Application

An export trader has to be registered under two categories which are as Manufacturing Exporter and Merchant Exporter. The exporter has to declare the mainline of business while applying for the RCMC application to the Exports Promotion Council (EPC). There is a total number of 26 Export Promotion Councils and 9 commodities boards across the nation. The Central Government authorizes these institutions to issue RCMC to an exporter. Exporters dealing with the listed 14 services have to register with the Services EPC whereas exporters of any other services have to register with FIEO.

One requires to submit the application with ANF 2C (Aayat Niryat Form) to the Exports Promotion Council for obtaining the RCMC certificate. Thereafter the trader is granted with the membership of the RCMC by the concerned Exports Promotion Council (EPC). The registered manufacturer/exporter has to submit the relevant documents to the authorities.

Documents Required for RCMC Registration in India

1. Application form with all the details along with mentioning the nature of the business

2. Certified Copy of the IMC issued by the licensing authority

3. Copy of the bank account certificates

4. Declaration in relation to the effect on imports and exports in the financial year.

5. Details whether registration is sought as Manufacturer Exporter, SSI/IEM certificate

6. Copy of the Articles of Association or Memorandum of Association and the partnership deed in case of partnership firm

Guidelines for Registration

• An exporter has to declare the mainstream business when he applies for RCMC. The RCMC has to be obtained by the Export Promotional Council and it depends upon the nature of business.
• The person can directly apply for the certificate as FIEO (Federation of Indian Exporters Organization), if the person does not belong to any category of export promotion council.
• Those who are multi-product exporters and are not registered with any EPC, or if the stream of business which is required yet to be confirmed, then the exporter has an option to obtain RCMC registration from FIEO.
• For the exporters having their head office/ registered office in north-eastern states, RCMC can be obtained from Shellac and Forest Product Export Promotional Council, unless it is for the products that are looked after by APEDA, Spices Board and Tea Board.
• The exporters of handicrafts and handloom products who belong to the state of Jammu and Kashmir authorized to issue Registration Cum Membership Certificates.

Competent Authorities for RCMC Registration

• Exporters can obtain RCMC registration from Federation of Indian Exporters Organizations (FIEO) or a relevant Export Promotion Council.
• Status holders can obtain RCMC registration from FIEO
• RCMC registration can also be obtained if the export product is not covered by any Exports Promotion Council
• Registration of RCMC should be obtained from Shellac and Forest Products Export Promotion Council (SHEFEXIL) if the exporter deals with forest produce and value-added products
• Exporters with the intention of dealing with software have to get themselves registered with Electronic and Computer Software EPC (ESC)
• Exporters dealing with the listed 14 services have to register with the Services EPC whereas exporters of any other services have to register with FIEO

Why RCMC is required

• For seeking authorization to export (or import) any restricted item
• For planning to claim various benefits offered by the Foreign Trade Policy
• For the benefits under the Customs and Central excise authorities

Intimation for change in Constitution of business of RCMC holder

In case there is the change in ownership, constitution, name or address of any exporter, then within one month of the change, the exporter shall intimate that particular change to the concerned registering authority. Registering authority may condone delay in case there is a genuine reason for delay and the exporters should submit necessary evidence stating the justification for delay.

Compliance under RCMC

• Every exporter has to furnish quarterly return/details of his exports of different commodities to the concerned registering authority.
• If an exporter is registered with FIEO, then he shall be required to send quarterly returns to FIEO in the prescribed format.

Penalty for violation

The Export Promotional Council may de-register the exporter for a specified period for violation of conditions of registration after giving a reasonable opportunity of being heard.

De-registration

In case of violation of conditions of registration, the registering authority may de-register the RCMC holder. Before de-registration, the RCMC holder is served with a reasonable show cause notice and also given a reasonable opportunity of being heard and to make a representation against the proposed de-registration.

Appeal against De-registration

Against de-registration the aggrieved party i.e. RCMC holder has a right to appeal to DGFT within a period of 45 days from the decision of de-registration and the final decision of the appellate authority will be valid.

Conclusion

A Registration Cum Membership Certificate (RCMC) is a certificate issued by the Federation of Indian Export Organizations (FIEO) and/or one of the various Export Promotion Councils (EPC) or Commodity Boards which are primarily agencies and organizations that work towards the promotion and development of export businesses and are authorized to do so by the Government of India. Some of the popular EPCs include APEDA, SEPC, GIEPC, tea board, EEPC, and spices board.