Common Mistakes to Avoid During RCMC Registration !
To claim the government-introduced benefits and schemes, the exporters are required to provide a valid certificate. In the meantime, to enforce the export production at the international level, the Indian government has mandated the compulsory RCMC registration. On the other side, navigating the Registration-cum-Membership Certificate process is the gateway to unlocking government benefits. Before availing these benefits, the business is required to obtain an RCMC India certificate from the relevant council or commodity board. However, many applicants make common mistakes that cause license delay or rejection. This page will explore how you, the exporters, can avoid these pitfalls for fast RCMC approval.
What is the Role of the RCMC Certificate for Exporters?
As per the Export Trade Policy, the businesses that are associated with exportation and want to participate in international trade fairs must be RCMC license holders. The certificate is compulsory under the purview of the Export Promotion Councils. This export registration certificate is beneficial in many ways, such as ensuring compliance and connecting to potential buyers and sellers. Furthermore, with it, the businesses can be eligible for various export schemes and incentives. However, a minor mistake during the RCMC registration time period can impact hosted export opportunities.
What are the Pitfalls that Arise During RCMC Registration?
Pitfall 1: Select an Invalid Export Promotion Council |
It is the most significant and impactful error that can arise during registration. Registering with the wrong EPC (Export Promotion Council) can lead to rejection. For example, instead of applying to the AEPC for textiles, you register with the Commodity Board. |
Pitfall 2: Failing to Double-Check Business Details |
A minor mistake or inaccuracy in the application details can become a significant headache. For the online RCMC registration form, the accuracy of information is mandatory. The mismatched details during the review can flag the application for rejection or delay. |
Pitfall 3: Incorrect IEC Number |
The Import-Export code number is the foundation for the RCMC certificate generation. Any mistake in this 10-digit code can raise challenges for you. During the review of the ICE code against DGFT’s database, it may halt the application form. |
Pitfall 4: Mismatched Firm Information |
It is the prime reason for the rejection of the license of RCMC. Mentioning the wrong information about the company address, including the name, might raise challenges. |
Pitfall 5: Overlooking Renewal Deadlines |
As compared to the AD code certificate, the RCMC certificate is valid for a specific timeline. Applying for the certificate renewal after its expiry can interrupt export operations. Furthermore, a fine will also be imposed for applying late. |
Pitfall 6: Submitting an Incomplete Application |
While the list of required documents for RCMC is standard, many applicants fail to ensure every single detail is correct before applying. |
Pitfall 7: Providing a Generic Description of Products |
Providing a Generic Description: For the international shipments, the HS (Harmonized System) code is vital. Using the inaccurate code can cause the application to be flagged for review. |
Avoid the Mistakes During Online RCMC Certification
In the previous discussion, we explored the pitfalls that arise when an exporter applies for the license of RCMC. But how can it be solved? The following are ways to avoid the mistakes:
-
Choose the Correct EPC
Selecting the right Export Promotion Council or Commodity Board is essential. During registration, match your exported goods or services with the correct EPC. If a company provides agricultural services, the APEDA is the primary council.
-
Provide an Accurate Document
A correct list of documents and their details is the basis of a successful certificate. Before application submission, double-check and verify the details. Must also ensure that the provided personal details, like name, address, and other details, are appropriate.
-
Accurate Information about HS Code
It is imperative to keep in mind that the HS code for the goods basically represents how the export item formally represents the actual goods. The code itself may be relevant to check the physical characteristics of goods before exporting them to a foreign market.
-
Provide Accurate Business Information
Company information, such as address and brand name, must be accurate. Make sure the company’s information is up-to-date with an EPC (if applicable). If any changes are required, make those before registration.
-
Apply for Renewals
A license from RCMC is valid only for five years. Before it expires, apply online. To keep reminding yourself, set a calendar reminder to ensure that you renew in time.
-
Understand EPC Requirements
Before choosing an EPC, go through their specific criteria and regulations. Every export promotion council and commodity board has its own registration guidelines.
Conclusion | Apply Online for RCMC Membership Certificate
In summary, incorrect details can hurt the online RCMC registration, so don’t make these mistakes that can restrict your business from accessing eligibility to the government schemes and benefits. If you avoid difficult mistakes and comprehend the requirements needed to register, you will be able to operate smoothly. Understand the full requirements of EPC registration by hiring a consultant. LegalRaasta operates in this space to assist organizations with applying to obtain RCMC certificates. Our professional experts are there to support you through the registration and certification process.
Frequently Asked Questions Related to RCMC License
-
Is the HS code mandatory for RCMC approval?
Ans. Yes, providing the HS code for the Registration-cum-Membership certificate is vital. It reflects the details of the products.
-
Can I export without the RCMC?
Ans. Yes, you can export without the RCMC. Meanwhile, it is eligible for those who want to claim benefits from certain post-export remission schemes.
-
What is the consequence of not having an IEC?
Ans. An IEC number is essential for international trade. Not having a valid import-export code can result in elimination by the customs department, being unable to utilize the government schemes, and facing difficulty in receiving foreign currency.
-
Is renewal of the IEC number mandatory?
Ans. Yes, to keep the import-export number active, businesses or individuals are required to apply for renewal by the end of June each year.
-
Are ICEGATE and DGFT the same?
Ans. No, generally, ICEGATE is recognized as the digital platform for customs clearance. Meanwhile, the DGFT serves as the licensing and regulatory authority. It is especially active for the foreign trade operations.