Registration-Cum-Membership Certificate (RCMC)

RCMC means the certificate of registration and membership granted by an Export Promotion Council/ Commodity Board/ Development Authority or other competent authority as prescribed in the Foreign Trade Policy or Handbook (Vol.1). An exporter desiring to obtain a Registration-cum-Membership Certificate shall declare his main line of business in the application, which shall be made to the Export Promotion Council (EPC) relating to that line of business. However, a status holder has the option to obtain RCMC from Federation of Indian Exporters Organization (FIEO). The service exporters (except software service exporters) shall be required to obtain RCMC from FIEO.

List of few EPCs/Commodity Boards

Agricultural and Processed Food Products Export Development Authority (APEDA) Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council Chemicals and Allied Products Export Promotion Council (CAPEXIL) Coffee Board Coir Board Electronics and Computer Software Export Promotion Council (ESC) Engineering Export Promotion Council Export Promotion Council for EOUs and SEZ Units Federation of Indian Export Organisations (FIEO)

List of few EPCs/Commodity Boards

The Gem & Jewellery Export Promotion Council Export Promotion Council for Handicrafts The Handloom Export Promotion Council The Indian Silk Export Promotion Council Pharmaceutical Export Promotion Council The Rubber Board Spices Board Tea Board Tobacco Board Wool & Woollens Export Promotion Council

Registration with various Agencies

i. Registration for legal identity :Exporter has to get his organization registered under respective acts/authorities such as: A sole proprietor - The Shops and Establishments Act or take permission from local authorities, such as Municipal Corporation, if required. A partnership firm - Indian Partnership Act, 1932. A Joint stock company - Indian Companies Act, 1956 A Co-operative Society - The Co-operative Societies Act, 1912. A Trust - Indian Trust Act, 1882

Registration with various Agencies

ii. Registration for manufacturing activities a. Small Scale Industry b. Industrial Licensing c. Tiny Sector/Enterprises d. Khadi Village Industries Commission

Registration with various Agencies

iii. Registration with Central Excise Authorities:Goods meant for exports are exempt from Central Excise duty. To avail exemption from payment of excise duty on export goods, exporter has to obtain C.Excise Registration. There are two options to avail such benefit: a. Export under Rebate claim - Exporter has to pay excise duty at the time of clearance and on exportation can claim rebate of excise duty paid. b. Export under Bond - In this case goods are cleared under Bond and there is no need of payment of excise duty.

Registration with various Agencies

iv. Registration with the Customs Authorities (BIN) Exporters have to obtain PAN based Business Identification Number (BIN) from the DGFT prior to filing of shipping bill for clearance of export goods. Under the EDI System, PAN based BIN is received by the Customs System from the DGFT online. v. Registration with VAT Authorities Goods which are to be shipped out of the country for export are eligible for exemption from both VAT and Central Sales Tax for this registration with VAT Authorities is required.

Registration with various Agencies

vi. Registration with Service Tax Authorities Service tax is an indirect tax levied under the Finance Act, 1994. At present, there are approximately 96 categories of services taxable under the service tax net. Service Tax is levied at a uniform rate of 12% + 2% Education Cess + 1% Secondary and Higher Education Cess on services liable to service tax under Finance Bill 2007.

vi. How to quickly respond to overseas enquiries and how to project image? Strategy in Export and Import Correspondence When to reply Means of reply vii. Electronic Data Interchange (EDI) EDI is the modern mode of transfer of documents. It is direct electronic transmission, computer to computer of standard business forms such as purchase order, advance, shipping notices, invoices and the like between two organizations. Contd.

The five key elements of EDI are 1. Electronic Transmission, 2. Standards Business Documents, 3. Predefined format, 4. Business application and 5. Trading partner. It increases the profits by lowering the cost of the business process and increases the marketing share by providing an improved service to customers. The Indian Government has also fallen in line with the requirements of International Trade and has introduced computerized processing of documents in various matters relating to international trade. Contd.

EDI applications can help with their wide range of business application systems for different industries, which include: Application for trade permits from government agencies. Bidding for export quotas from regulatory bodies. Filing of corporate returns with relevant authorities. Submission of claims to insurance companies. Bill payment and collection with banks and financial institutions. Order placement and invoicing with trading partners.