Is RCMC Mandatory for Export?

Entering into the export market, which is vast, dynamic and full of exciting and joyful opportunities for Indian businesses, requires adherence to several regulatory compliances that are prescribed by the Directorate General of Foreign Trade. Among all of these key requirements is the Registration-cum-Membership Certificate (RCMC), which is issued by the relevant Export Promotion Councils or Commodity Boards. New exporters usually get confused regarding whether RCMC is compulsory or not, when it is needed and how it impacts export benefits and other elements.

This detailed guide will explain whether RCMC is mandatory for export, its importance, exemptions, eligible authorities, documents required and various other important aspects and the step-by-step process of obtaining it.

What is RCMC?

The Registration-cum-Membership Certificate (RCMC) is an official document which is issued to an exporter by an Export Promotion Council, Commodity Board or any other Export Development Authority. It serves as legal proof that the exporter is duly registered with the respective council and is actively involved in the particular exporting of specified products.

RCMC is governed by the Foreign Trade Policy (FTP) and provides exporters access to various government incentives, export schemes and trade support.

Is RCMC Mandatory for Export?

Short Answer: No, RCMC is not mandatory for all exports.

However, RCMC becomes mandatory in the following cases:

1. If you want to claim export incentives or benefits under schemes governed by DGFT, EPCs or other authorities.
2. If you export goods that fall under a specific export council, registration with that council becomes necessary.
3. If you want to participate in international trade fairs, buyer-seller meets or promotional schemes conducted by EPCs.
4. If the export of your product is regulated by a particular board or authority (e.g., Tea Board, Coffee Board, Spices Board, etc.).

RCMC is NOT required for:

• Exporters who do not claim any benefits or incentives under the Foreign Trade Policy.
• Export of products not governed by any specific council or board.
• Service exporters who can obtain voluntary registration under the Services Export Promotion Council (SEPC).

Thus, RCMC is conditional, not universal.

Why is RCMC Important for Exporters?

Though not compulsory for every export transaction, RCMC offers several crucial advantages:

1. Access to Export Incentives

RCMC enables businesses to claim benefits under:

• RoDTEP Scheme
• RoSCTL
• Export Promotion Capital Goods (EPCG) Scheme
• Advance Authorization Scheme
• Market Access Initiatives (MAI)

Without RCMC, exporters may not be eligible for these incentives.

2. Participation in Trade Fairs and Delegations

Export Promotion Councils organize:

• International exhibitions
• Buyer-seller meets
• Trade delegations

RCMC is mandatory for participation in many such events.

3. Industry Updates and Policy Support

Registered exporters get regular updates on:

• Changes in FTP
• Export market trends
• Product-specific regulations
• Training and development programs

4. Recognition as a Legitimate Exporter

RCMC helps exporters demonstrate credibility when dealing with:

• International buyers
• Logistics partners
• Banks
• Customs authorities

5. Smooth Compliance with DGFT Requirements

Many DGFT procedures, such as license applications or EPCG, require RCMC details.

Authorities Issuing RCMC

The issuing authority depends on the nature of the product. Some major councils/boards include:

• FIEO (Federation of Indian Export Organisations) – For exporters dealing with multi-product or multi-sector items.
• APEDA – For agricultural and processed foods.
• MPEDA – For marine products.
• Spices Board – For spices.
• Coffee Board, Tea Board, Rubber Board – Commodity-specific boards.
• Textile Export Promotion Councils – For garments, handlooms & textiles.
• Pharmaceuticals Export Promotion Council (Pharmexcil) – For pharma products.
• GJEPC – For gems and jewellery.
• Engineering Export Promotion Council (EEPC) – For engineering goods.
• SEPC – For service exporters.

If a product falls under multiple categories, the exporter can choose any one council that matches the main line of business.

Documents Required to Obtain RCMC

The required documents may vary depending on the issuing council, but generally include:

1. Import Export Code (IEC) issued by DGFT
2. GST Registration Certificate
3. PAN Card of the business entity
4. Incorporation documents (Partnership Deed, LLP Agreement, or Certificate of Incorporation)
5. Exporter’s declaration about the product line
6. Banker Certificate or cancelled cheque
7. Proof of business place
8. Past export performance statement (if applicable)

Some councils may request additional documents based on product type.

How to Apply for RCMC? Step-by-Step Process

The application process has been made easier through online portals. Here’s the step-by-step guide:

Step 1: Determine the Right Council

Identify whether your product falls under a specific Export Promotion Council or Commodity Board.
If not, apply through FIEO.

Step 2: Register on the DGFT Portal

Go to the DGFT website and create a login using: –

• IEC
• Mobile number
• Email ID

Step 3: Submit an Online Application

Fill in all required details, including:

• Product category
• Business organization details
• Address & contact information
• DGFT file number

Step 4: Upload Documents

Upload scanned copies of all required documents in the prescribed format.

Step 5: Pay Registration Fee

Each council charges a fee that may vary from ₹5,000 to ₹12,000 depending on the sector.

Step 6: Verification and Approval

The council verifies the details and approves the registration…!

Step 7: Issuance of RCMC

Once approved, the RCMC:

• Becomes valid for five years
• Can be downloaded online
• It is used for availing DGFT benefits and export assistance

Validity and Renewal of RCMC

RCMC is generally valid for 5 years from the date of issue. Exporters should apply for renewal at least 30 days before expiry to continue availing benefits seamlessly.

What Happens If You Export Without RCMC?

Exporting without RCMC is legally permitted, but there are limitations:

You can export, but you cannot:

• Claim export incentives
• Apply for EPCG/Advance Authorization schemes
• Participate in many government-funded trade fairs
• Access certain export-related training or support programs

For businesses who are looking to expand, skipping RCMC may lead to loss of benefits and growth opportunities.

Conclusion

RCMC is not mandatory for all exports from India. However, it becomes essential if exporters want to avail benefits under the Foreign Trade Policy, participate in export promotion activities or deal with products governed by specific councils or commodity boards. Even though exporters can ship goods without RCMC, obtaining it is highly recommended as it enhances market credibility, transparency and also opens doors to government incentives and ensures smooth participation in global trade development initiatives.

With a validity of five years, straightforward documentation requirements and an easy online application process, exporters, whether new or established, should consider obtaining RCMC to strengthen their presence in the global marketplace.