RCMC Registration Explained: Myths vs. Facts

Now, it has become common to explain why the RCMC certificate is important for exporters. It is easier to mention that the exporters are restricted from the export benefits offered by the Foreign Trade Policy (FTP). In other words, the Registration-cum-Membership Certificate (RCMC) is a certificate issued by the Indian government. It serves as an EPC membership certificate for Indian exporters. But there are specific myths and facts that every exporter must know about it. Let’s break down the page to explore the RCMC myths vs. facts in detail.

1. What is the Purpose of RCMC?

The Registration-cum-Membership Certificate (RCMC) is a legally accepted license that is valid for five financial years. While it is issued by the relevant Export Promotion Councils (EPC), the commodity board, or the development authority. These authorities, along with the exporter’s correspondence, are the primary business line. Validating the exporter’s legitimacy makes them eligible to access government benefits under India’s Foreign Trade Policy (FTP). With a valid RCMC certificate for export, businesses can claim Remission of Duties and Taxes on Exported Products (RoDTEP). 

2. Registration-cum-Membership Certificate: Myths vs. Facts

👉 Myth 1: RCMC is mandatory for all exporters

Fact: This is a partial myth. This is because RCMC is not compulsory for all exporters. This certificate is optional and required only for those who want to access government benefits. This can be understood as

Requirement of RCMC: The exporters must hold the certificate of RCMC when they wish to claim government-supported incentives and schemes under FTP. Well, for the restricted items, it is also required. 

When it is not in Use: The businesses can export the goods or services without the RCMC if they do not want to access government benefits, incentives, and schemes. However, without the government scheme support, dealing in a competitive market can become challenging. 

👉 Myth 2: RCMC Registration Process is Slow and Difficult

Fact: Since the single common window, the DGFT portal, has been introduced, the registration process has become easier and faster. In more detail:

DGFT Online Portal: For the electronic application, the Directorate General of Foreign Trade (DGFT) portal has been established. It is also in use for RCMC renewal, registration, and amendment during changes in details. It not only reduces the extra wastage of time but also makes work paperless.

Faster Processing: The processing time is generally faster, but it depends on the accuracy and completeness of documents and the network during registration.

 👉 Myth 3: Separate RCMC required for Multi-Products

Fact: The export business that deals with multiple products does not need to register with each separate council. In this case, they can register with:

FIEO: This authority manages those goods categories that are not covered by EPCs, Commodity Boards, or the Development Authority. Register with the Federation of Indian Export Organizations (FIEO) for multiple products. 

👉 Myth 4: Any organization that holds an IEC can claim government benefits

Fact: Having the Import-Export Code (IEC) is the primary requirement in the export world, but it is not enough to access the export-support benefits under the Foreign Trade Policy (FTP). 

Mandatory for RCMC: Obtaining the IEC number is crucial for RCMC registration. But the Registration-cum-Membership (RCMC) is the only document through which exporters can claim the export promotion scheme.

Membership for benefits: Through the RCMC registration, exporters receive membership with the relevant EPCs or commodity boards. The document is required to identify the type of membership. Through it, exporters can become a beloved part of foreign trade fairs and can gain access to the duty drawback. 

👉 Myth 5: One RCMC is enough for all products. 

Fact. There are no restrictions on the number of separate RCMC certificates one can obtain for each separate product. For exporters dealing in different sectors, they can obtain a separate Registration-cum-Membership Certificate. Alternatively, FIEO (Federation of Indian Export Organizations) is active in issuing the registration-cum-membership certificate for multi-product exporters. 

👉 Myth 6: Validity is the same for all RCMC

Fact: As per the standard validity, a Registration-cum-Membership Certificate (RCMC) will remain valid for only 5 financial years, and it is required to be renewed on 31st March of the 5th consecutive financial year. However, various other EPCs that issue RCMC have slightly different validity. 

👉 Myth 7: You can Export High-Risk products freely

 Fact: As per the Foreign Trade Policy (FTP), the RCMC is a prerequisite to authorize the export or import of products. A valid EPC membership certificate is required to ensure compliance with standards. 

3. Final Discussion | Apply Registration-cum-Membership Certificate (RCMC) Online

The RCMC certificate for export plays a vital role for export businesses. This certificate is the gateway to avail the various government-supported schemes and benefits. Having the registration export certificate demonstrates the right membership with the relevant Export Promotion Council (EPC) or a Commodity Board. Those who are looking to grow their export business in international markets and want to participate in foreign trade fairs, apply for an RCMC license now. Avoid the registration complexities with LegalRaasta experts. We assist you throughout the registration procedure. 

4. Still have questions? Browse our FAQs or contact support

(a) Can I obtain the two RCMC certificates?

Ans. Yes, you can apply for more than one or two RCMC certificates for the different category products. For each product category, apply to the correct Export Promotion Council (EPC). Despite receiving multiple RCMCs, register with FIEO if you are a multi-product exporter.

(b) What are the different types of RCMC?

RCMC can be defined by the type of memberships or the type of exporters. In detail:

• By exporter type: The types of exporters who apply for RCMC are manufacturer exporters, merchant exporters, and service exporters.
• By Membership Type: The membership depends on export business experience and turnover. The major types of membership are ordinary membership, associate membership, trading house (TH) membership, star export house (SEH) membership, and premier trading house (PTH) membership. 
• By Issuing Authority: RCMC certificates for export are issued by the various authorities, including the Export Promotion Council (EPC), Commodity Board, Development Authority, and Federation of Indian Export Organizations (FIEO).

(c) What are three types of export control?

Ans. The three types of export control are categorized as

• Item-Based Control
• End-User Control
• End-Use Control

(d) Are RCMC and EPC the same?

Ans. No, RCMC and EPC are not the same. RCMC stands for Registration-cum-Membership Certificate, which is an export certificate for claiming government benefits. EPC stands for Export Promotion Council, which issues the RCMC certificate.

(e) How to download the RCMC certificate?

Ans. To download the Registration-cum-Membership Certificate (RCMC), visit the DGFT website. Log in to the portal, visit the ‘RCMC Certificate Download’ link, and then download the certificate in PDF format.