Understanding RCMC Certification: Significance and Procedure
Shivam Narwal | Updated: May 04, 2023 | Category: RCMC Registration
RCMC stands for registration cum membership certificate. In accordance with the present international trade policy, this certificate is given to the company as authorization to carry out exports and receive some sort of concession. The Federation of Indian Export Organisations (FIEO) is the organization that provides this certificate. The Export Promotion Council of India (EPC) also grants this certificate. Community boards are another entity that may grant this certificate. Promoting the Indian export industry is one of the main objectives of providing this type of certificate. Additionally, having such a certification would give one credibility when interacting with public transactions. T Apeda, sepc, gjepc, tea board, eepc, and spices board are a few of the well-known EPCs. When applying for an RCMC, the applicant must specify their primary line of business, and once they have one, they are entitled to all the perks and benefits of their respective parent company. We will try to understand the procedure and significance of RCMC certification in this post.
Purpose of RCMC Certification
An obligatory certificate called the RCMC is needed in order to take advantage of export incentives and subsidies offered through several programmes as MEIS, RoSCTL, RoDTEP, SEIS, Advance Licence, EPCG, etc. RCMC is one of the mandatory documents needed to obtain a Letter of Undertaking (LUT), which is necessary if you want to export goods under GST without paying duty. Furthermore, you must possess an RCMC certificate if you are a merchant exporter and wish to buy goods intended for export from the manufacturer at a reduced GST rate of 0.1% rather than the standard rate that applies to the item. It’s vital to remember that only merchant exporters who have an RCMC certificate can take advantage of the reduced GST rate. In short, RCMC is a key document that exporters must have in order to take advantage of various incentives and services provided by various schemes and legislation.
Significance of RCMC
There are certain advantages of RCMC certification. Some of the advantages are discussed below:
- RCMC registration can be beneficial for the applicant because it helps in obtaining certain export benefits and allows the certificate holder to purchase the goods for export at only 0.1% GST rate.
- You can get useful market knowledge and insights on a variety of goods and marketplaces by using an RCMC. This can assist you in identifying possible clients, comprehending their needs, and designing your items to satisfy those needs. By doing this, you can beat out the competition and boost sales.
- The RCMC can assist you in making contacts with other exporters, trade organisations, and industry specialists. You might do this to broaden your network and pick up tips from more experienced exporters. They have knowledge and experience dealing the rules and laws governing international trade, which you can use to your advantage.
- You can reach numerous overseas markets and look into new business prospects with an RCMC. You can lessen your reliance on any one market and broaden your consumer base as a result. Also, you can benefit from lower production costs by raising your profit margins.
- You join a group of exporters who share your interests when you register as a member of an export promotion council. To help you flourish in foreign markets, this community can offer you resources, support, and advice. This assistance will prove to be beneficial in the future endeavours.
What Documents are needed for RCMC Certification?
The necessary documents required for RCMC certification are listed as follows:
- The RCMC application Form ANF 2C must be submitted by the applicant, who must also sign the form after accurately filling out all required fields. Along with this form, he or she must also submit the necessary self-certified copies, including:
- Permanent Account Number and Personal Identification Number
- Importer-Exporter number (IEC)
- Articles of Association and Memorandum of Understanding (in case of Private Limited firms, LLPs, or corporations under Companies Act, 2013)
- Partnership deed or trust deed (in case of LLPs or partnership firms)
- Relevant GST documents
- A company must have the certificate relating to the change of registered office provided by the Registrar of Companies.
Procedure for RCMC Registration
If a person or applicant wants to submit an RCMC application, they must accurately complete the ANF 2C form and sign it with a reference to the export product. For instance, if a candidate is affiliated with the tea or coffee industry, he should apply to the Tea and Coffee Council; if he is associated with the textile export industry, he should apply to the AEPC (Apparel Export Promotion Council). In general, there are two types of exporters, and they are merchants and manufacturers. In order to register as a manufacturing exporter, the person must provide documentation of the current manufacturing plant. The details required for the form are evident:
- The applicant must submit an application to the relevant EPC that contains the company’s address, as well as its branch, registered office, factory, and telephone number.
- The IEC code should be provided in full by the application, together with details about the manufacturing unit like factory registration, an industrial licence, etc.
- They must also include product specifications for the major task type and any required registration.
- The applicant can consult the DGFT’s (Directorate General of Foreign Trade) updated Annexure 2T for a list of EPCs, Boards, and Authorities as well as their mobile numbers and other pertinent details if they want to know which EPC/Commodity Board/Authority their product is under.
In the world of international trade, the RCMC certification is essential. It acts as a necessary document that enables exporters to benefit from a range of incentives and subsidies provided by various programmes and schemes. Obtaining the RCMC gives exporters an advantage over rivals in the market by giving them access to export incentives and the option to buy items for export at a lower GST rate. The importance of RCMC also extends beyond its financial benefits. Exporters can use it as a doorway to incredibly useful market information and insights, enabling them to comprehend client wants and develop products that are suited to them. By connecting with other business experts, trade associations, and seasoned exporters through the RCMC, exporters can gain access to their knowledge and direction.
Read our Article:IRDAI License and Certification: Procedure and Significance