Overview of RCMC for Export Trade – The Basics

International Trade Regulations play a pivotal role in global import-export business facilitation. The RCMC for Exporthas been introduced by the Ministry of Commerce and Industry to monitor export businesses in various ways.

The Registration cum Membership Certificate is an official authorization issued by Export Promotion Council (EPC) to assure-

Smooth operations of export business.
Comply with FTPs (Foreign Trade Policies) of DGFT.
The applicability of RCMC registration for every exporterfrom respective EPC to operate their core export trade.
RCMC Authorization for those export categories which can’t be issued by EPC, but can be issued by FIEC.

Key Benefits Unlocked with RCMC for Export Operations

The primary goal of introducing RCMC for Export in foreign trade is to secure Indian exporters in various ways.

Apart from helping Indian exporters to comply with Foreign Trade Policies, the RCMCCertificate assures various export leverages as well.

Some of the key highlights of those trade benefits unleashed with RCMC in DGFT trade include-

Access to Advance Authorization Scheme (AAS) under Foreign Trade Policy assuring zero import duty on import of capital goods to produce finished products meant for export.
Improve the presence of Indian products in global markets.
Decrease in production cost of exported goods by assuring cheap raw materials.
Enhance export trade facilitation.
A valid RCMC for Export Authorization assures Duty Drawback scheme to get a refund on paid custom duty applicable on-
Goods to be processed, treated or incorporated in other goods for export.
Goods unutilized since importing.
Access to RoDTEP (Remission of Duties and Taxes on Export Products) scheme to recover refunds on embedded taxes and duties paid to concerned authorities.
Availing the scheme to boost PAN India based export-activities.
Duty-Free Import Authorization via the DFIA Scheme for importing fuel, oil, and energy sources to manufacture goods meant for export-quality.
Access to EPCG scheme to facilitate import of capital goods including spares meant for production, pre-production and post-production at nominal cost.
A valid RCMC for Export allows the import of capital goods at a cost that is approx. 6 times less than the applicable levy usually on the import of such goods under the EPCG Scheme.

Role of RCMC for ExportIssued By EPC

The valid authorization of RCMC in DGFT plays a crucial role in securing the international trade interests of the exporters.

Apart from assuring various Govt. schemes to simplify export facilitation, the RCMC Certificate plays the following role in fostering international trade regulations, that include-

Assuring valid credibility to an exporter with an RCMC Authorized registration Certificate.
Allowing exporters to reduce costs and enhance competitiveness
Mandates applicability of RCMC for Export for exporting any product falling under EPCs jurisdiction.
Facilitates high-quality export by adhering to quality standards and export regulations.
Encourage RCMC-registered exporters to participate in trade fairs and exhibitions organized by EPC from time to time.
Amplifying scopes to encourage network building between Indian exporters and international buyers
Conducting workshops and offering training programs with exporters from time to time to explore new market segments.