RCMC Success Story: Simplifying Exports for a First-Time Electronics Manufacturer

India is the landscape of businesses where individuals or companies deliver a single chance to grow. With the increase in people’s demand, the Indian export of electronics is moving faster. However, before starting the electronics export journey, the individual may have to suffer several challenges. As the new entrant in international markets, you might face supply chain and operational challenges, regulatory compliance requirements, and market & financial risks.. But, to overcome such challenges, the exporters are choosing the RCMC registration route. The Registration-cum-Membership Certificate (RCMC) has become such a turning point for new exporters. Let’s break down the page to explore how the RCMC simplifies the first-time electronics export challenges.

1. Understanding the Importance of RCMC in Export

RCMC, or registration-cum-membership certificate, is a legally recognized document. Under the Foreign Trade Policy (FTP), the document is used for accessing the benefits and schemes related to export. In general, the certificate demonstrates that the export business has a valid membership with EPC. This legitimacy proof allows them to gain government benefits, participate in trade fairs, and much more. The RCMC certificate is also beneficial for obtaining authorization to import or export certain restricted items. On the other hand, several EPC or commodity boards are active that promote the export to global markets. 

For example,  if an exporter manufactures the electronic products for export,  it will be eligible to get RCMC from the “Electronics and Computer Software Export Promotion Council” under their export promotion for RCMC. 

2. The Challenge: Starting Exports Without Experience

Trying to get market access for export without the experience can raise potential challenges. Starting the export electronics business without experience is like solving questions without formulas. Therefore, before moving into such activities, gaining knowledge is essential. Meanwhile, the major challenges exporters can face with market knowledge are:

• Selecting the right or demanding product on time can be challenging without market research.
• Despite the export-ready product, the exporters struggle to discover reliable international buyers. Often, they fail to approach the right client. 
• The new exporter didn’t conduct the market research that impacts the business starting stage the start.
• The cultural differences often become the pain point for exporters.
• Managing the initial complex registration process without expert support raises hurdles.

In the end, the challenges for the new aspiring entrepreneurs do not end here. It further includes navigating the regulatory body requirements, managing the complex paperwork, and navigating the finance and payment frameworks.

3. The Turning Point: Journey of RCMC

For the new exporters, the RCMC is introduced as the game-changer. The RCMC success story streamlines the export journey smoothly and approachably. Before getting the registration-cum-membership certificate, the exporters are required to meet the DGFT and EPC’s set guidelines. In detail:

• EPC (Export Promotion Council): The EPC is a government-established non-profit organization that is responsible for promoting and managing Indian exports. By serving as the base between the government and industry, it promotes Indian exports into global markets. Through the EPC membership registration, the exporters get the market information, tickets to trade events, meetings of buyer-sellers, and much more.
• DGFT (Directorate General of Foreign Trade): It is active in implementing India’s Foreign Trade Policy. DGFT plays an instrumental role for exporters by serving as a license-issuing authority, offering trade-related benefits and much more. It aims to make the foreign trade activities smoother and faster without the challenges for exporters. It also drives economic growth and ensures trade compliance.

4. How Fintech or Online Filing Tools Simplified the Process?

The fintech tools simplified the RCMC registration process by turning it from manual paperwork to digital registration. The new exporters don’t need to face the paperwork hurdles, but they can simplify it through the online tools. The digital tool greatly simplified the application, filing, Document submission, Payment process status tracking, and much more. The major impact exporters experienced after the revolution of online and fintech tools:  

• The old registration method is time-consuming, but the online RCMC registration process saves on extra time and money investment.
• The online tool also provides report tracing mechanisms, thus increasing the transparency of the application. 
• By eliminating the geographical barriers, the exporters can connect to their potential international buyers.
• RCMC made a better and more approachable financial service for exporters. 

5. What Benefits Are Experienced After RCMC Registration?

For the first time, for electronic manufacturers, the Registration-cum-Membership Certificate (RCMC) is the game-changer. Be able to fix for the Registration Council with Electronics and Computer Software Export Promotion Council (ESC). It is a government-sponsored organization that promotes India’s electronics exports, IT, and telecom services. With the ESC membership certificate, the exporters can easily get access to export incentives and government schemes, boost their brand credibility, simplify export documentation, etc. 

Note: In case you are dealing with multiple products, including electronics, then the primary export regulatory authority is the Federation of Indian Export Organizations (FIEO). 

6. Lessons Learned and Tips for New Exporters

For the new learner, start the registration journey with:

1. Choosing the right EPC: Choosing the incorrect EPC for their main line of business is the primary reason for declined applications. For exporters new to the export world, it is necessary to choose the right EPC that aligns with their main line of business.

In this example, if you are an exporter of electronics or dealing with a single product, such as electronics export, you must register with the Electronics and Computer Software Export Promotion Council (ESC). However, for the multiple products, FIEO is an active promotion council, and for the service promotion, register with the Services Export Promotion Council (SEPC). 

1. Ensure Document Accuracy: Must keep the documents complete, clear, and in an accurate format. The IEC number (Import Export Code) to apply to RCMC is the main document.
2. Get a CA Report: Get the NIL certificate from a CA who certifies the export earnings, which is applicable during the export registration process.
3. Respond to Queries: Be updated on the DGFT portal and track the status to respond immediately after raising any query by the authority.

7. Sum Up | RCMC Certificate Registration for Electronic Manufacturers

For the electronic manufacturers, the primary targeted council is the “Electronics and Computer Software Export Promotion Council (ESC).” RCMC is making the new exporters more confident in international markets by offering valuable support. Securing the RCMC certificate for export is beneficial for those looking for sustainable growth for their electronic manufacturing export industry. Remove export documentation barriers using the DGFT portal, your electronic gateway for the RCMC registration. Use LegalRaasta’s professional consultancy for the quick, uncomplicated, and efficient Registration-cum-Membership Certificate process.

8. Got Questions? Our Quirky FAQ Page has all the Answers 

A) Is it possible to register with ESC for the purpose of promoting electronics exports?

Ans. Yes, ESC (Electronics and Computer Software Export Promotion Council) is the right and primary authority that promotes the Indian electronics sector to global markets.

B) Where can I submit the RCMC online application?

Ans. For the RCMC application submission online, you must use the Directorate General of Foreign Trade (DGFT) website. 

C) Is MEDEPC for electronic export promotion?

Ans. Yes, apart from ESC, the Mobile and Electronic Devices Export Promotion Council (MEDEPC) is active for the buildup of electronics internationally. It mainly focuses on IT products and electronics.

D) What is the role of TEPC?

Ans. For the promotion of telecom equipment and services, the exporters and manufacturers register with TEPC (Telecom Equipment and Services Export Promotion Council). 

E) How many EPCs are there?

Ans. There are almost 14 EPC (Export Promotion Councils) that are active, which is under the control of  Department of Commerce, there are fourteen export promotion councils that are active.