Exporters no longer need RCMC to gain benefits under schemes

According to the Directorate General of Foreign Trade (DGFT), the exporters are not required to obtain Registration-Cum-Membership Certificate (RCMC) for claiming benefits under post-export remission-based schemes. However, the refund rates have been lowered, now ranging from 0.3% to 3.9%, compared to the earlier rates of 0.5% to 4.3%.

The government has clarified that exporters are no longer required to obtain a Registration-Cum-Membership Certificate (RCMC) to claim benefits under certain post-export remission-based schemes. These include the Rebate of State and Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Export Products (RoDTEP), and the duty drawback scheme. This update, detailed in an October 4 trade notice posted on the Directorate General of Foreign Trade (DGFT) portal, clarifies that RCMC is not mandatory for these schemes under the Foreign Trade Policy (FTP) 2023.

The notification stated, “For the aforementioned remission-based schemes, the requirement of an RCMC does not apply. Exporters can claim benefits under these schemes without obtaining an RCMC.”

According to the new FTP an RCMC is typically required for exporters seeking authorization to import or export, except for restricted items in ITC (HS), or to claim other benefits or concessions. The RCMC certificate is a validation of an exporter dealing in specific products and is issued for five financial years by agencies like Export Promotion Councils (EPCs), Commodity Boards, or Development Authorities authorized by the government.

To obtain an RCMC, exporters must declare their primary business when applying and must hold an active Importer-Exporter Code (IEC), an updated IEC profile, and a digital signature or Aadhaar e-Signature for submission.

The RoDTEP scheme provides exporters with a rebate on central, state, and local duties or taxes that are not refunded through other programs, while the RoSCTL scheme compensates exporters of apparel and made-ups for state and central taxes in addition to the benefits of the duty drawback scheme. The government has extended the RoSCTL scheme until March 31, 2026, and the RoDTEP scheme until September 30, 2025. However, the refund rates have been reduced, now ranging from 0.3% to 3.9%, compared to the earlier rates of 0.5% to 4.3%.