RCMC Registration- An Overview
RCMC is an abbreviation for registration cum membership certificate. This certificate is issued as a license to the company to carry out exports and avail some form of concessions under the present foreign trade policy. The RCMC certificate is issued by the Federation of Indian Export Organisations (FIEO).
Apart from this the certificate is issued by the Export Promotion Council of India (EPC). Community boards also have authority over issuing this certificate. One of the main aims of providing this form of certificate is to promote the business of exports from India. Apart from this, securing such a certification would have authenticity when dealing with public transactions.
Such certificate is not required by an organisation or an institution which has been exempted from requiring some form of export and import license. This certificate is valid for a period of 5 years.
As per the Export promotion policy of India, this form of certificate is required to be taken by an exporter. The certificate would be issued by the competent export promotion council (EPC).
For securing RCMC registration, the FIEO is considered as the export promotion council in India. First the firm or the organisation would have to make an application for becoming a member of the FIEO.
Types of Membership for RCMC Registration under FIEO
There are two types of membership for RCMC Registration under FIEO
From the name it implies that the membership is just the basic membership. This form of membership would be for an organisation that has just entered into the business of the export and import.
The associate membership is for entities that have already been in the business of export and import over a period of time. The charges levied for associate membership is more based on the fee plus a nominal rate of GST.
Benefits of RCMC Registration
The main regulatory authority for RCMC registration is the FIEO. Hence the exporter would have to apply to the FIEO for the membership. The registration granted by the FIEO is the RCMC. The following benefits have to be considered for RCMC registration:
Foreign Trade Policy
An Exporter that opts for RCMC registration would secure some of the benefits offered under the foreign trade policy of the country. Apart from this, different form of updates would be provided to the exporter on the foreign trade policy.
Promotion of Exports
In India, export promotion is crucial. To engage the development of different sectors, it is important to promote exports in the country. Securing this registration would directly promote exports on an international level. One of the advantages of securing this registration is securing international expansion policies related to the exports in the country. For example, the Government have brought out the scheme for Atmanirbhar Bharat. Under this scheme the government want Indians to buy more products manufactured in India. Through such schemes self sustenance can be established. This scheme would also improve the amount of exports from India.
Availing Different Schemes
Through such registration the exporting firm or company can avail different form of schemes under the FIEO. This would not be possible for any unregistered firms or businesses.
Compliance with Government
An entity or company that secures this registration would be compliant with the rules and byelaws of the government.
Updates from FIEO
Apart from getting different form of concessions from the FIEO, also updates regarding the foreign trade policy in India would be provided. An individual who wants to secure different benefits from the FIEO but does not want the RCMC certificate can still register as an individual exporter.
Eligibility Criteria for RCMC registration
The following criteria have to be sufficed by the applicant when applying to the FIEO for the RCMC certificate:
Exporter or Merchandiser (Merchant)
First the applicant has to ensure that the business carried out is exports and imports business. This is one of the primary requirements for establishing an export business in India. Apart from this the exporter has to ensure that they have applied for the Import Export Code (IEC) with the respective authority. This authority for IEC is the DGFT (Director General of Foreign Trade).
Declaration of Main Line of Business
The exporter or merchant has to declare the main line of business. For example, if the main line of business is coffee and tea then the respective consent of the Tea and Coffee promotion board must be sort. If the products are not covered by any form of export promotion board or any other authority then consent to export the same must be provided by the FIEO.
Consent from Board of the FIEO
The applicant has to ensure that respective consent is sort from the respective board or the FIEO. If there is no specific board for a particular product, then the applicant would have to apply to the FIEO for securing the consent. Approval for the same must be provided by the FIEO.
How to apply for Ordinary Membership for the RCMC registration?
There are two forms of membership under the RCMC system of registration. If the individual has to apply for the ordinary membership then the following steps have to be considered:
Go online to the website of the FIEO
The exporter or the merchant in the first step has to proceed online to the website https://www.fieo.org/index.php . The applicant then has to either click on the tab membership. Then go to how to apply for RCMC registration, endorsement. Apart from this the application can be downloaded from the downloads tab present in the FIEO website.
Click on Application for Membership Online
There will be sub tabs under the main tab membership. The applicant must click on application. There the applicant will be redirected to another webpage where credentials are required. This will include the username, password and the import-export code (IEC Number).
Fill in the information provided
On the membership tab, there will be another tab called ordinary membership. Under the ordinary membership information has to be provided by the exporter. This information will include the name, address, the 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).
Provide the Mandatory Details
Name of the firm and the type of the exports carried out by the firm would be the mandatory.
Provide the Entity type
In the next step, the applicant has to mention the entity type in the box provided. This would indicate if the organisation is a partnership or a company.
Provide information on Key Management Executives
In the next step, the applicant has to provide information on the key management executives of the entity. This would include information on the directors and shareholders of the company.
Provide Letter of Authority
In the final step, the applicant has to provide a letter of authority. This letter will indicate who is the authority representing the applicant in the FIEO on the application. Providing such information is mandatory for the applicant.
How to Apply for an Associate Membership under the FIEO?
The following instructions have to be followed for applying for an associate membership:
Download the application form
In the first step, the applicant has to download the application for application of associate membership.
Indicate the type of business
In the next step the applicant has to indicate the class of business considered. Here the applicant has to mention the type of business and the mode of operations carried out in the business.
Fill in the details related to the business
The applicant has to provide information regarding the business. This would include the IEC number, details of the entity and other information regarding the business.
The documents have to be uploaded or appended along with the form.
Provide the Letter of Authority
In the last step the applicant has to provide the letter of authority. The letter of authority will indicate who is going to represent the applicant in the FIEO for RCMC registration.
Documents for RCMC Registration
The following documents are required for the above license:
- Copy of the Import Export Code regarding the applicant. The copy of the IEC code has to be self certified by the respective licensing body or the authority.
- Cross Cheque or a Demand Draft (DD) or some form of pay order favouring the name of the Federation of Indian Export Organisation.
- This DD or cross cheque must go towards the annual membership subscriptions. Such rules have to be in accordance with the requirement of Rule 6 (i) of the Rules & Regulations of the Memorandum & Articles of Association of FIEO.
- Authority letter must be in accordance to the rules prescribed by the particular authority. This authority letter must be attested and signed by a chartered accountant. The seal must be accompanied by a respective registration number of the bank.
- Apart from this there must be self attested copies of respective certificates such as the SSI certificate, industrial licenses, import export license and other specifications. This would only be if applicable.
- If the business is considered as a respective industrial house, the self certified copies of the same must be provided.
- Information related to the GST such as the GSTIN
- Past three years export turnover must also be provided by the applicant
- Statement of foreign exchange earnings earned in the past three years