Trade Compliance Ensures RCMC Certificate Registration

Introduction 

Fulfilling the trade compliance is essential to successfully obtain the Registration-cum-Membership Certificate (RCMC). To obtain any certificate, the primary stage is to adhere to the specific requirements set by the relevant authority. In the rapidly growing world, meeting export trade compliance is more than a legal formality. The management of compliance is crucial to make the export registration process smooth and accessible. Furthermore, in India, the certificate of RCMC is granted by the relevant EPC or commodity boards. But here is the catch. The exporters are required to adhere to the Foreign Trade Policy (FTP). Let’s take a look at the blog details to understand the foreign trade compliance requirements, parameters, etc.

Why is Compliance Important for the RCMC Certificate?

The registration for RCMC is a mandatory certificate for those who want to access benefits under the Foreign Trade Policy (FTP). To claim the benefits, getting the membership certificate from the relevant export promotion council is a prerequisite. The postulate is that adherence to FTP compliance is a legal requirement. Accurate management of compliance helps to continue access to export-related benefits, as well as to avoid potential legal penalties.

What are the Trade Compliance legal Requirements?

In broad terms, export trade compliance refers to adherence to set foreign trade rules and regulations. Foreign trade compliance management is required when businesses trade goods internationally. The common trade compliance requirements are –

Legal Registration Requirements

• IEC (Import-Export) Code: The IEC code provides the legal identity to businesses. Obtaining an IEC number is mandatory before initiating the export operations. 
• RCMC Certificate: Obtaining the Registration-Cum-Membership certificate is for claiming government-supported schemes, incentives, and benefits.

Important License Registration 

• Export License: Specific items, such as pharmaceuticals or defense, require the approval of the government before exporting.
• Scoment License: When an exporter deals with sensitive or dual-use items, registration for the Scoment License is mandatory in India.

Customs Approval adherence

• HS Code Classification: Having an accurate mention of the HS (Harmonized System) is vital to demonstrate the duties, restrictions, and documentation. 
• Filings: Properly file on the ICEGATE for export declaration. 

Accurate Documentation

• IEC & Other: Maintenance of the Import Export Code (IEC) is essential. Further update the GST registration, PAN, and product details. 
• RCMC Certificate: Meeting to trade compliance is critical before applying for the RCMC membership certificate online.

Choosing the Correct EPC

• EPC: Selecting the right Export Promotion Council is crucial. The exporters must determine their export line and obtain membership with the relevant authority.
• FIEO: If an exporter is dealing with more than one product, they must register with FIEO. 

User Query: How Does the RCMC Certificate Grow Indian Export Business?

The Key Function of Trade Compliance in the RCMC Application

The word “trade compliance” refers to the meaning of adherence to all set rules, regulations, and laws by the Indian government. Meeting a specific requirement ensures that the application will not be delayed or rejected. Illustration of compliance for smooth registration:

1. DGFT Regulations: The Directorate General of Foreign Trade (DGFT) is the main governing body for foreign trade in India. Before RCMC approval, the exporters are required to comply with the DGFT’s set rules.
2. Annual Export Data: Submission of annual export data to DGFT is mandatory. The RCMC India certificate can be canceled or suspended if businesses fail to adhere to the set requirements.
3. RCMC Renewal: An exporter can use the license of RCMC only for five years. To continue the membership with the relevant EPC, one must apply for the certificate renewal.
4. Record Keeping: Maintain an accurate list of all foreign transactions to adhere to DGFT’s set record-keeping requirements.
5. Regulatory Updates: Foreign trade policies change with new requirements. Staying updated with policy changes is crucial. It helps to adhere to the new set of regulatory compliance requirements.
6. Quality Standard: The exporters must adhere to the importing country’s set quality standards to avoid delay or rejection.

Benefits of Trade-Compliant RCMC Registration

• Sets a positive image of individuals as legitimate exporters.
• Claims for export promotion schemes and incentives.
• Ticket for participation in government-supported ‘international trade fairs.’ 
• A positive meet-up of buyers and sellers at trade fairs.
• Builds strong brand credibility in global markets

The Character of the FTP in RCMC Approval

Foreign Trade Policy (FTP) requires the exporters to apply online RCMC registration in India by registering with EPCs. DGFT is the primary portal for the Registration Cum Membership Certificate (RCMC). Under the FTP compliance requirements, the exporters can access government benefits. The major role of FTP is

• FTP mandates exporters and importers to obtain a license from RCMC to access government benefits
• It sets the eligibility criteria and creates a strong framework to mention who can apply for a certificate and under what terms. 
• Under the review of FTP, EPCs, Commodity Boards, and Export Development authorities are responsible for granting the RCMC certificate.

Final Discussion | RCMC Membership Certificate Apply Online

In essence, the RCMC certificate is the gateway to open the doors of government-supported schemes, benefits, and incentives. In a similar way, trade compliance is the backbone of the RCMC India certificate. By complying with regulatory frameworks, you are not only making the registration process hassle-free but also creating a route for business growth. By accepting the growth strategy, the businesses can expand internationally. Now, meeting to trade compliance requirements has become easier with legal professional support. Get in touch with LegalRaasta experts, your trusted legal consultants. 

Frequently Asked Questions Related to RCMC Registration

1. What is the purpose of the registration-cum-membership certificate?

Ans. RCMC certificate is issued to the Indian exporters who want to access the Indian government-supported schemes, benefits, and incentives under the Foreign Trade Policy.

2. What is the RCMC certificate price?

Ans. The certification cost depends on the Export Promotion Council or Commodity Board you register with, including the price, which further depends on export turnover, as well as the type of exporter (merchant or manufacturer exporter).

3. Who is eligible for APEDA registration?

Ans. The individuals or businesses who are engaged in production, processing, trading, or export of agricultural and food products are eligible for APEDA registration.

4. Are RCMC and APEDA the same?

Ans. No, APEDA is an organization that serves as the Agricultural and Processed Food Products Export Development Authority. Meanwhile, this organization provides the RCMC certificate to exporters. 

5. Is an FSSAI license required before registering with APEDA?

Ans. Yes, the exporters are required to obtain the FSSAI license if dealing in food exports. Once licensed, exporters can apply to register with APEDA for a Registration-cum-Membership Certificate.