What is RCMC and Why is it Important?
In international trade, it is essential to have proper documentation and compliance with the laws and regulations of the countries involved. One such document required for export and import of goods is the Registration-cum-Membership Certificate (RCMC). In this blog, we will explore the concept of RCMC, its importance, and the process of obtaining it.
Understanding RCMC
RCMC is a certificate issued by the Export Promotion Councils (EPCs) or Commodity Boards recognized by the Government of India. It acts as proof of a company’s registration with the council/board and signifies its status as an exporter or importer of goods. RCMC is valid for a specific period and needs to be renewed after expiration.
Importance of RCMC
RCMC plays a crucial role in international trade as it helps in availing various benefits provided by the Government of India to the exporters and importers. Some of the benefits include:
- Duty drawback: RCMC holders are eligible to claim duty drawback, a refund of the customs and excise duties paid on inputs used in the production of exported goods.
- Export incentives: RCMC holders are eligible for various export incentives provided by the government, such as the Merchandise Export from India Scheme (MEIS), Service Export from India Scheme (SEIS), and the Interest Equalization Scheme (IES).
- Simplified procedures: RCMC holders are granted various benefits and facilities to simplify procedures related to customs, taxation, and licensing.
- Access to market information: Export Promotion Councils and Commodity Boards provide valuable market information, trade leads, and business opportunities to their members.
Obtaining RCMC
The process of obtaining RCMC is relatively simple and can be done online. The following steps are involved in obtaining RCMC:
- Register with the relevant Export Promotion Council or Commodity Board.
- Fill in the RCMC application form and provide the necessary documents, such as PAN card, GST registration, bank account details, etc.
- Pay the RCMC application fee, which varies from council to council.
- The council will review the application and may conduct a verification visit to the applicant’s premises.
- Upon approval, the council will issue the RCMC certificate, which is valid for a specific period.
Validity and Renewal of RCMC
RCMC is valid for a period of five years from the date of issue. After the expiry of the certificate, the exporter/importer needs to apply for renewal. The process of renewal is similar to that of obtaining RCMC. The exporter/importer needs to fill in the RCMC renewal form, provide the necessary documents, and pay the renewal fee.
Documents Required for RCMC
The following documents are generally required for obtaining RCMC:
- PAN card
- GST registration
- Bank account details
- Import-export code (IEC)
- Proof of business premises, such as rent agreement, ownership proof, or utility bills
- Registration certificate of the council/board
- Any other document as specified by the council/board
Types of RCMC
There are two types of RCMC:
- Merchant Exporter RCMC: This is issued to the merchant exporters who export goods on their account.
- Manufacturer Exporter RCMC: This is issued to the manufacturer exporters who export goods manufactured by them.
RCMC and COVID-19
In view of the COVID-19 pandemic, the government has extended the validity of RCMC certificates that expired on or after February 1, 2020, by six months. This move was taken to provide relief to the exporters who were facing difficulties in renewing their RCMC certificates due to the pandemic.
Conclusion
RCMC is a critical document for exporters and importers engaged in international trade. It not only provides various benefits and facilities but also signifies the exporter/importer’s registration with the council/board. Obtaining and renewing RCMC is a relatively simple process and can be done online. In today’s globalized world, compliance with the laws and regulations of the countries involved is crucial for the success of any international trade venture.
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Frequently Asked Questions (FAQs)
- What is RCMC?
RCMC stands for Registration-cum-Membership Certificate. It is a certificate issued by the Export Promotion Councils or Commodity Boards recognized by the Government of India to signify a company’s registration with the council/board and its status as an exporter or importer of goods.
- Who needs to obtain RCMC?
Any exporter or importer of goods who wants to avail benefits provided by the government, such as duty drawback, export incentives, simplified procedures, and access to market information, needs to obtain RCMC.
- How long is RCMC valid?
RCMC is valid for a period of five years from the date of issue.
- Can RCMC be renewed?
Yes, RCMC can be renewed after its expiry. The process of renewal is similar to that of obtaining RCMC.
- What are the benefits of obtaining RCMC?
RCMC holders are eligible for various benefits provided by the government, such as duty drawback, export incentives, simplified procedures, and access to market information.
- How can I obtain RCMC?
To obtain RCMC, you need to register with the relevant Export Promotion Council or Commodity Board, fill in the RCMC application form, provide the necessary documents, and pay the application fee.
- What documents are required for RCMC?
The documents required for RCMC generally include PAN card, GST registration, bank account details, import-export code (IEC), proof of business premises, registration certificate of the council/board, and any other document as specified by the council/board.
- How long does it take to obtain RCMC?
The time taken to obtain RCMC varies from council to council. Generally, it takes around 15-20 working days to obtain RCMC.
- What is the difference between Merchant Exporter RCMC and Manufacturer Exporter RCMC?
Merchant Exporter RCMC is issued to the merchant exporters who export goods on their account, while Manufacturer Exporter RCMC is issued to the manufacturer exporters who export goods manufactured by them.
- What is the impact of COVID-19 on RCMC?
The government has extended the validity of RCMC certificates that expired on or after February 1, 2020, by six months in view of the COVID-19 pandemic to provide relief to the exporters who were facing difficulties in renewing their RCMC certificates.
