How Digital RCMC Application Transforming India’s Export Sector?

In India, multiple export houses are active in helping domestic companies to promote their products in international markets. Between international clients and Indian manufacturers, these export houses act as intermediaries. In short, such export businesses purchase the goods from domestic manufacturers and then export them to international buyers. However, to legally manage the export business, the export houses need to obtain a valid RCMC. Through the Registration-cum-Membership Certificate, the export houses & bulk exporters can unlock access to government incentives and other benefits. Well, since the digital system has taken place, the RCMC registration has become faster and easier. Let’s explore how the online RCMC certification is changing the view of bulk exporters and other export houses. 

1. Understanding Export Houses’ Role in International Trade

The exporter house serves a crucial role in promoting the nation’s exports and economy. To boost the international trade of Indian goods and services, they connect with domestic manufacturers. The key functions of export houses are

• Plays an intermediary role: They sell the domestic manufacturers’ goods to global clients. Into this, the manufacturers are not directly connected to international buyers.
• Handles the goods shipping: For shipping the goods to international buyers, the export houses arrange the transportation.
• Manages customs and documentation: They manage and obtain the essential export license, permissions, and customs approval.
• Offers additional support: Often, such export houses handle the management of quality control and product packaging, as well as financing.

2. RCMC Eligibility criteria under DGFT guidelines for export house

The export houses that want to avail the government benefits and incentives are required to first obtain a valid RCMC. The Registration-cum-Membership Certificate is essential for export houses to gain international market recognition. Under the guidelines of DGFT, you must have:

• An active Import-Export Code (IEC). 
• Businesses must be engaged in import-export activities.
• Register with the right Export Promotion Council (EPC).
• Apply for RCMC online through the DGFT portal. 
• Use the DSC or Aadhaar e-sign for application submission.

3. Digital Revolution Impacting the RCMC Registration Process

The digital era has transformed a lot of the RCMC registration process. Even so, it becomes easier for new export houses to get the Registration-cum-Membership certificate hassle-free. Let’s find the difference before and after the revolution of digital activities:

4. What are the benefits of Export Houses via Online Registration?

Under the Foreign Trade Policy (FTP), the export houses can obtain the RCMC directly through the DGFT portal. They can apply for RCMC online. The key benefits of online registration are

Faster Processing

As the whole registration process turned online, it minimized the burden of paperwork and turned into a paperless process. By reducing the processing timeline, it issues the Registration-cum-Membership Certificate in a short time.

Greater Transparency

The multi-options on the DGFT portal, including real-time tracking and automated data validation, bring transparency. The export houses can monitor their RCMC application online.

Increased Efficiency

As the whole process has turned digital, there is no need for exporters to visit offices for RCMC registration. It significantly reduces the administrative burdens and errors for the export house.

Minimizes Costs

Due to the online RCMC registration, the exporters save significant costs, such as printing, courier fees, and potential costs spent on travel. These activities are usually associated with in-person document submission.

5. Challenges and Considerations: RCMC Apply Online

Despite having the positive impacts of, the major challenge that arises with the online RCMC registration for exporters is:

• Often, the new or small export enterprises are not very aware of the new digital platform modules. Those with significant technical knowledge face challenges in adopting the new digital revolution. 
• Despite online document submission, incorrect or incomplete information results in delays or rejection. The DGFT portal rejects the application due to incomplete information. 
• Due to incomplete knowledge about the specific EPC, errors arise with choosing the wrong EPC. Mismatched details of the company also cause application rejection.
• For submitting the online application, a valid DSC or Aadhaar e-signature is mandatory. 

6. Final Thoughts | Export Houses Obtains RCMC Certificate to Deal Internationally

Since the RCMC registration process turned online, it has made all the steps easier, such as being paperless, having less administrative burden, and having faster registration processing. The manual registration process turned into a streamlined, automated, and contactless online system. By understanding the key factors of the DGFT portal with the importance of the IEC number during registration, export houses can get faster access to schemes and incentives. Unlock the doors of government benefits and schemes with a one-time registration process. Visit the LegalRaasta.com website for more updates.

Also Read…RCMC Certification with SEPC

Still have questions? Browse our FAQs Section

1. Who are the export houses?

Ans. Export houses connect the domestic manufacturers to international buyers. It facilitates the international trade of goods and services. 

2. How is an export house different from a trading house?

Ans. The export houses are only associated with goods and services exporting. They only focus on searching for foreign buyers, completing shipping bills and documentation, and managing customs exports. Meanwhile, the trading houses deal with both importing and exporting of goods and services. 

3. How to get DSC for DGFT?

Ans. To get the DSC (Digital Signature Certificate), you must apply with a Certifying Authority (CA). Once you get the DSC, register it on the DGFT portal. Must ensure that you have the right type of DSC, whether type 2 or 3. 

4. What is the DGFT digital signature cost?

Ans. The cost of a DGFT digital signature depends on the specific validity, registration type, and vendor. However, the cost for a one-year certificate validity is $2,800, and for two years, it is $3,000. 

5. Is RCMC mandatory for export houses?

Ans. No, RCMC certification is not compulsory for export houses. However, if export houses want to claim the government benefits under FTP, they need to apply for a Registration-cum-Membership Certificate (RCMC).