RCMC Certificate for Exporting Goods: Mandatory or Not?

When applying for an Import Export Code (IEC), you may wonder if obtaining a Registration-Cum-Membership Certificate (RCMC) is mandatory for initiating the process of exporting goods. This article aims to clarify the requirements and provide clarity on when and why an RCMC is essential for exporting goods.

Is RCMC Mandatory for All Export Goods?

The answer is no. Not all export products require an RCMC. However, the requirement for this certificate varies depending on the product being exported. If your export product does not fall under the categories that mandate an RCMC as specified in the provided image, you do not need to obtain an RCMC for your export shipment. This means that your export process will not be halted due to the absence of an RCMC.

Export Promotion Schemes Requiring RCMC

It is important to note that the RCMC is necessary if you intend to benefit from export promotion schemes like the EPCG Advance License or DFIA. However, it is crucial to know that the RCMC is not compulsory for claiming benefits under the RoDTEP and RoSCTL schemes.

Another scenario where the RCMC is required is when you are applying for an LUT (Letter of Undertaking) Bond for exports and need approval from the GST (Goods and Services Tax) Department. Additionally, if you are a merchant exporter and plan to procure goods from a manufacturer exporter at a 0.1% GST rate, an RCMC is mandatory.

What is an RCMC Certificate?

An RCMC certificate is a document issued by the Federation of Indian Export Organizations (FIEO) and/or one of the various Export Promotion Councils (EPC) or Commodity Boards in India. These agencies work towards the promotion and development of export businesses and are authorized to issue RCMCs by the Government of India. An RCMC is a membership certificate valid for five years and indicates that the holder is registered with FIEO or the concerned EPC/Commodity Board.

Rationale for Seeking an RCMC Certificate

As an exporter, you may need to apply for an RCMC certificate in the following scenarios:

Obtaining authorization to export or import any restricted various benefits under the Foreign Trade to avail benefits offered by the Customs and Central excise authorities.

Note that an RCMC is applicable even if you plan to export multiple products from different categories, each under different EPCs or Commodity Boards.

How to Apply for an RCMC Certificate

For detailed information on the RCMC registration process, application fees, and required documents, please refer to the link provided below:

RCMC Fees and Application Process

Conclusion

The RCMC is not mandatory for all export goods, but it can be crucial for specific types of exports and export promotion schemes. Understanding the requirement and obtaining an RCMC can greatly facilitate the export process and potential benefits. For more detailed guidance or to apply for an RCMC, you can visit the official page or contact the relevant authorities.