The leading trade promotion agency for textile and apparel exports from India is called the Apparel Export Promotion Council (AEPC). The AEPC was founded with the aim of delivering innovative leadership and services to help the Indian textiles and apparel industry become more competitive in the global market.
Many people are interested in exporting apparel but are unsure of the requirements for being accepted as an AEPC of India member. Thankfully, this blog explains all of your eligibility requirements, making it much simpler for you to determine which category you should select.
In accordance with Section 8 of the Companies Act 2013, the AEPC is registered and has two types of members: member exporters and registered exporters.
Any company, society, or statutory organization that exports clothing in accordance with the council’s export policies and objectives—whether they export as manufacturers or merchants—shall be entitled to be registered as a registered exporter by the council.
According to the provisions of the council’s articles of association, anyone who exports clothing—whether they are manufacturers, merchant exporters, or otherwise interested in the actual export of clothing—is eligible to join the organization, provided they also meet all other requirements set forth in the Act, the Articles, and the bye-laws and regulations.
The council’s executive committee has therefore established the following requirements for changing from a registered exporter to a member exporter:
AEPC Eligibility criteria
To be eligible for membership in the AEPC, an Indian company must:
- Engaged in the apparel or textile manufacturing or exporting industry
- Have an annual export turnover of at least Rs. 5 crores
- Be registered with the Registrar of Companies/Societies
- On the date of the application for membership, the applicant is a registered firm/company or, in the case of an individual for a sole proprietor enterprise, he or she is older than 21 years of age.
- No competent court of law has declared the applicant, or any partner, director, or Karta of the firm or company, to be insolvent.
- Neither the applicant nor any of the firm’s partners, directors, or Kartas have ever been found guilty of a crime involving misconduct or moral turpitude.
If you meet these requirements, you can submit an application form to the AEPC along with your membership request. You will have to pay an annual membership fee if your application is accepted.
Documents required
Knowing the necessary paperwork is essential before beginning the AEPC registration process. The following is a list of the necessary documents:
- Application form
- Certificate of incorporation/registration
- Memorandum and articles of association
- Certificate of export excellence/performance
- Permanent account number (PAN) card
- Bankers’ report
- Product Profile
- Shipping bills/invoices/packing list
- Visit the Director General of Foreign Trade (DGFT) site at www.dgft.gov.in to make your annual subscription payment for the fiscal year 2022–2023. Please send a demand draft, pay order, or check for Rs. 1500 (+ 18% GST) if you have previously paid the yearly subscription for the fiscal years 2022–2023 as a registered exporter (admission cost of Rs. 1000 + difference of Rs. 500 for conversion from registered exporter to member exporter).
10. The application for conversion from a registered exporter to a member exporter may be submitted, along with the aforementioned documentation, either at the council’s registered office or headquarters or at the relevant council branches.
The following rights and privileges are in addition to and without limitation of any other rights and privileges granted to members by the Memorandum of Association, the Articles of Association of the Council, or the Act.
The right to obtain a copy of the Council’s Memorandum and Articles of Association upon written request and payment of Rs. 1 per copy within seven days.
The right to receive notification of council general meetings.
The right to obtain council reports and yearly accounts.
The right to subscribe to council publications under the terms and circumstances decided upon by the committee.
The right to utilize all amenities that may occasionally be made available within the rules established by the committee.
The AEPC registration procedure is straightforward and trouble-free. All you have to do to get started is submit the aforementioned paperwork along with the registration fee.
Advantages of recognition
Being acknowledged by the AEPC of India has a lot of benefits. This can benefit your company in a number of ways, including the ones listed below:
- Increased visibility: Your business name and logo will appear on AEPC’s website and in their marketing materials once you have been approved. This can help your brand become more wellknown to potential customers in India and other countries.
- Access to exclusive events: All authorized export houses are invited to attend a number of events that AEPC arranges throughout the year. These gatherings offer a great chance to network with other business people in the field and discover the newest trends.
- Preferential treatment: When it comes to resource distribution and engagement in activities, AEPC gives recognized export houses preference. This could significantly boost your company’s competitive advantage.
- Enhanced credibility: Having your company recognized by the AEPC increases its legitimacy. As a result, it may be simpler to attract new clients and business partners.
Drawbacks of not being a member
There may be benefits available to you if you join the AEPC that you are not currently receiving. The following are some disadvantages of not joining:
You may be subject to export restrictions
Regarding exports, the AEPC has established several rules for both members and non-members. What you can export can be limited if you’re not a member.
You may have difficulty getting financing.
You must be a member of the AEPC in order to obtain financing from several financial institutions for your business. Receiving the finance you require to expand your firm may become challenging as a result.
You may miss out on networking opportunities.
You can meet other members and learn about the most recent developments in the apparel industry by attending networking events and other opportunities as an AEPC member. These crucial connections may pass you by if you are not a member.
How long does it take for a customer to get appointed as a member of the AEPC?
A client is normally appointed as a member of the AEPC in about two weeks. However, the number of applications submitted and the number of board members available to review them can change this. After being appointed, a client is obliged to pay a yearly membership fee. This charge is intended to defray the council’s operating expenses and promote exports in the garment sector.
What are the activities that can benefit from the AEPC?
The national trade promotion organization is the AEPC. Its main goal is to promote the export of Indian clothing and apparel.
A variety of services offered by the AEPC can help companies in the clothing and apparel industry. These services include buyer-seller match facilitation, market research, product development, and trade marketing. For enterprises in the industry, the council also offers assistance with capacity building and training. The AEPC also helps companies with export-related paperwork and with adhering to legal regulations.
AEPC registration
Any AEPC/ATDC office may accept the following documents, which are necessary to join as per international trade policy:
- Downloadable application forms are available on the AEPC website.
- A properly notarized undertaking on non-judicial stamp paper
- A self-attested copy of the partnership agreement, certificate, or memorandum and articles of association
- Registrar of firms, etc., as applicable
- A self-attested copy of the SSI is required if the exporter wants to be recognized as a manufacturer.
- A properly self-attested Certificate, Letter of Intent, Industrial License, or Acknowledgment issued by the relevant government
- The entrance price for new registration is Rs. 1000 plus Rs. 180 (GST at 18%), which comes to Rs. 1180. The annual fee is Rs. 8000 plus Rs. 1440 (GST at 18%), which comes to Rs. 9440 (for a total of Rs. 10620).
Renewal of AEPC registration
According to the information below, APEC members are asked to renew their membership for the fiscal years 2022–2023:
For the Fiscal Years 2022–2023, the Annual Subscription Fees
Particulars | Yearly Subscription (in ₹) |
Exporters who are members and have registration numbers between 1 and 10,000 and more than 100,000 but less than 2,000,000 | ₹8,500 + GST* |
In addition to member exporters | ₹8,000 + GST* |
*The applicable GST at this time is 18%. Subscriptions are non-transferable and non-refundable once purchased.
Additionally, keep in mind that the executive committee, in its meeting on March 16, 2017, in Jaipur, established the following advantages for paying an annual subscription in advance for three or five years:
- If the annual subscription is paid in advance for three years, you’ll receive 500 rupees as an incentive each year (before or on 31st May)
- A 600 rupees annual bonus if the annual subscription is paid in advance for five years (before or on 31st May)
- If the annual contribution is made after May 31 of the fiscal year or/and for fewer than three or five years, there will be no incentive.
- The earlier-mentioned incentive (given in points 1 and 2) is also valid for annual subscriptions deposited with the AEPC after May 31 (of the current fiscal year). It is subject to the current fiscal year’s subscription being properly paid and that it should be related to the financial years (three or five years, respectively) that follow the current fiscal year.
AEPC membership
Eligibility requirements for joining APEC
Individuals involved in the manufacture or sale of the specified garment are eligible to join APEC by submitting an application form and all required documentation to the APEC headquarters. Being a manufacturing exporter or a merchant exporter is the basic requirement for participation.
A person or sole proprietorship must be at least 18 years old in order to register. A court should not have declared the candidate or any partners insolvent or found them guilty of a crime involving moral turpitude or improper behavior. The business must have had a three-year cumulative export turnover of more than Rs. 1 crore.
Practically all export promotion councils have a Registration and Membership Certificate as one of their most important requirements. A candidate must possess a Registration-cum-Member Certificate in order to benefit from becoming an APEC Member Exporter (RCMC).
Becoming an APEC member: Documents required
The application form, which is also accessible on the APEC website, should be filled out and submitted. The applicant must supply certain essential details, such as the name of company, the region in which it works, the previous years’ export revenue, the registration number, and so on.
Along with the application form, the candidate must also submit the following documents:
- A self-certified copy of the importer-exporter code (IEC) issued by the DGFT (licensing authority)
- An official declaration on stamp paper (non-judicial)
- A copy of the AOA and MOA that has been self-attested, a certificate from the Registrar of Firms, a partnership deed, etc.
- A manufacturer exporter needs a self-attested copy of the industrial license or SSI certificate.
- Each of the aforementioned documents must bear a notarial stamp (non-judicial)
- A letter of intent, a document with my own signature on it, and an industrial license issued by the appropriate government
Paying dues to join APEC
Entrance costs for a new registration are ₹1,000 + ₹180 (GST 18%) = ₹1,180, with a yearly charge of ₹8,000 + ₹1,440 (GST 18%) = ₹9,440, for a net amount of ₹10,620.
AEPC certificate
RCMC through AEPC
A textile exporter must get an RCMC from the AEPC to qualify for numerous benefits under the foreign trade policy. The government has recognized AEPC as an export promotion council for registration reasons.
Who qualifies for AEPC-RCMC?
Any applicant who is an exporter of garments, whether manufacturer exporter or merchant exporter, shall be eligible to be registered as a
- Certified exporter
- Exporter member
Acceptance as a registered exporter
- The applicant is a legitimate individual, organization, or firm (proprietor; the proprietor must be of 21 years of age)
- The petitioner cannot be a bankrupt who has not been discharged
- The applicant needs to submit a digital signature certificate and the IE code supplied by the DGFT.
Documents required
- Downloadable application form available on the APEC website
- An IEC certificate copy that has been self-certified
- A properly notarized undertaking on non-judicial stamp paper
- A self-attested copy of the partnership agreement, memorandum and articles of association, certificate from the firm’s registrar, etc., where applicable
- In the event that the maker or exporter self-attested the SSI
- A properly self-attested Certificate, Letter of Intent, Industrial License, or Acknowledgment issued by the relevant government
Registration fee
- Rs. 1180 is the entrance charge for new registrations.
- The yearly cost is Rs. 9440.
Membership requirements for exporters
The applicant must meet the following criteria in addition to meeting the requirements of an exporter who is registered:
- Over the past three fiscal years, the company’s total clothing export revenue was close to Rs. 1 crore.
Documents required
- Completed prescription application form
- Exporter’s three-year financial turnover, officially confirmed by a banker or chartered accountant.
- Original RCMC of the exporter’s registration
- The application for conversion from a registered exporter to a member exporter, along with the previously mentioned documentation, may also be submitted at the council’s registered office, head office, or relevant council branches.
Registration fee
- Rs. 9440 for yearly registration as an exporter
- Rs. 1770 as the entry fee for exporters who are members
AEPC logo
The AEPC’s logo is displayed below:
Online AEPC registration
The goal of the AEPC trade application is to help importers and exporters by offering a public key infrastructure (PKI)-enabled online interface for joining and/or using the RCMC of different export promotion councils. Additionally, it offers secure data transfer of digital RCMCs to DGFT so that importers and exporters can use them without having to carry around physical copies, and DGFT inspectors can quickly and accurately verify the RCMC.
The following are some of the system’s major advantages as seen by IEC holders:
- RCMC filing online
- Online evaluation of RCMC (ability to track application status)
- Be notified by email and short message service of RCMC status
- Online requests for renewal, cancellation, and endorsement
- Fasterprocessingoftransactionsatalllevels
- A decrease in overall expenses
- Complete protection against fraud and theft
- Data transmission to DGFT automatically
- Information is available and accessible around the clock
The AEPC closely collaborates with agencies to develop policies and plans for the expansion of the Indian textiles and apparel sector. To increase the exports of Indian textile and apparel, the AEPC also conducts a number of promotional events.
- The AEPC has regional offices in Mumbai, Chennai, Kolkata, and Bengaluru, and its headquarters are in New Delhi.
- There are more than 3,000 members of the AEPC, including producers, exporters, and suppliers of clothing and textiles from all throughout India.
- The AEPC offers its members a variety of services, such as market intelligence, export promotion, quality assurance, capacity building, etc.
- The AEPC arranges exhibitions, trade shows, and buyer-seller events to promote the Indian textile and apparel industries internationally.
Based on our discussion thus far, we anticipate that this blog will be beneficial to all curious visitors who want to comprehend the requirements for AEPC.