RCMC Helps to Access Government Schemes Like MAI, EPCG, & other

India is the landscape of businesses, whether it is related to export or import. The continued support of the government through the schemes and benefits to exporters made India the 4th largest economy in the world. With such continued support and promotion in international markets, India will become the 3rd largest economy in the world by 2028. But, what are the causes on which these ranking depends? The credit goes to the government-introduced schemes such as MAI (Market Access Initiative), EPCG (Export Promotion Capital Goods), and many more. However, the RCMC registration is the backbone of these schemes and incentives. In this comprehensive, we will explore how exporters can access government schemes via RCMC, the significance of various schemes, and much more.

1. How do Governments’ Schemes Help Businesses?

To support the MSMEs and other small businesses, the Indian government has established various schemes. To foster the growth of an entity, the business utilizes these schemes. Furthermore, through these schemes, the businesses get financial assistance, skill development, access to new technologies, and much more. For the financial support, businesses get access to the Credit Guarantee Scheme for Startups. This scheme is beneficial for securing the loan easily without doing extra formalities. To boost technological development, businesses secure the funds to invest in new technologies. 

Don’t miss this related guide: MSME Exporters File RCMC Certificate Online

2. RCMC Certificate: Grow Indian Export Business

To claim the Indian government benefits, schemes, and incentives, the exporters are required to obtain the mandatory RCMC. The Registration-cum-Membership Certificate is a prerequisite to validate export benefits. This is how a license of RCMC is advantageous for businesses:

2.1 Eligible for Government Benefits: Through the Export registration certificate, businesses get membership from the relevant EPC. These EPCs provide access to numerous government support schemes, duty drawbacks, and financial support. 

2.2 Gain Trust: By improving the business’s credibility in the international market, the certificate boosts the trust of partners and buyers.

2.3 Simplify Customs Clearance: Obtaining the RCMC allows businesses to simplify their export-import procedures. As well as the certificate streamlines customs clearance for goods.

2.4 Expand Business: Certificate allows participation in EPC-supported trade fairs. By offering the networking opportunity, it expands the business to a global stage. 

3. What Schemes can Claim with the RCMC Certificate?

By choosing the right EPC (Export Promotion Council), exporters can claim the numerous schemes. The specific schemes and benefits are –

4. What are the Requirements to Utilize Export Schemes

To be eligible for the export schemes, an individual or organization must adhere to trade compliance. Furthermore, obtaining the specific documents is also vital to utilize these schemes and incentives. The common eligibility requirements are:

A) Obtain a Valid IEC

The Import-Export Code (IEC) is the primary document to initiate the Indian export business.

B) Export Performance

Having significant experience in the export sector is crucial to claim specific schemes. In general, to claim schemes requires a certain export performance. 

C) Goods & Services Eligibility

Avoid exporting those products that are restricted by the Indian government. Exporters must deal only with those products or services that are categorized for specific schemes.

D) Scheme Application Timeline

Not all schemes require a long time frame. For example, for access to the RoSCTL scheme, the exporter must submit its application in a specified timeframe after product shipment. 

E) Restricted for Duplication

Avoid claiming benefits under the various schemes for the same activity.

Step-by-Step Guide: Apply for Export Scheme

The Indian export businesses are required to follow the multi-step process from DGFT to EPC. The other involved steps are

Step 1: Navigate DGFT Portal

Visit www.dgft.gov.in and register your profile on the portal as “Importer/Exporter.” 

Step 2: Register IEC with DGFT

You must now link an updated and valid IEC (Import-Export Code). In case you don’t have the IEC number, register for it on the same portal.

Step 3: Choose the Right scheme

Visit the ‘Service’ section on the portal. Once that is done, you can now select the appropriate scheme that aligns with your products and export strategy. 

Before you proceed to select any scheme, i.e., before you select any schemes, ensure that you fit the eligibility criteria of the scheme.

Step 4: Submit the Application

You must fill out the appropriate ANF (Aayat Niryat Form) as per your selected scheme. With the application form, attach the supporting documents.

Step 5: DSC for Application Submission

For the digital application submission with documents on the DGFT portal, use the DSC (Digital Signature Certificate).

Step 6: Track the Progress of Your Application

When you submit your application for a step-2 scheme, you will receive a reference number on your provided email ID (please note to follow up on the status of your application, refer to this email ID). Use the number to track the application status.

Final Discussion | Export Promotion Scheme with RCMC Certificate

In essence, the RCMC approval is crucial to obtaining the EPC membership certificate. For the exporters, the Registration-cum-Membership Certificate (RCMC) is the compulsory passport to claim various government benefits. Even to receive the export incentives, exporters need to obtain a valid export registration certificate. Business that are associated with export-import and wants to expand their services, get a valid certificate. Through exporters can get access to government schemes such as the Market Access Initiative (MAI) and Export Promotion Capital Goods (EPCG) scheme.

FAQs | RCMC Registration for Export Scheme

1. What is the role of RCMC?

Ans.Registration-cum-Membership (RCMC) certificate issued by the relevant export commodity board and EPCs. RCMC allows exporters to claim various government schemes, incentives, and export benefits. 

2. How is the EPCG scheme beneficial for exporters?

Ans. The EPCG scheme promotes Indian exports by reducing the customs duty to zero. At a null customs duty cost, the exporters can import capital goods to manufacture them for export. 

3. What are the eligibility criteria for the EPCG scheme?

Ans. To claim the EPCG scheme, the exporter’s previous year’s export turnover must be Rs 1 crore with a valid RCMC certificate.

4. What is the EOU scheme?

Ans. In 1981, the Indian government published the Export Oriented Units (EOU) scheme. The motive of this scheme is to promote Indian exports in global markets and boost foreign currency earnings.

5. What is the penalty for non-compliance with EPCG regulations?

Ans. The exporters who hold an EPCG license under its scheme, if they fail to adhere to the set export regulations, can face serious actions. Non-compliance with export obligations can lead to paying customs duty at a 15% interest rate annually.