Govt Waives RCMC Requirement For Key Export Remission Schemes

New Delhi, Oct 8 (KNN) In a recent clarification, the Indian government has announced that exporters are not required to obtain a Registration-Cum-Membership Certificate (RCMC) to claim benefits under certain post-export remission-based schemes. 

These schemes include the Rebate of State and Central Taxes and Levies (RoSCTL), Remission of Duties and Taxes on Export Products (RoDTEP), and duty drawback.

The Commerce Ministry issued a trade notice on October 4, which was subsequently uploaded to the Directorate General of Foreign Trade (DGFT) portal on Monday. 

This notice provided clarity on the RCMC requirements for schemes under the Foreign Trade Policy (FTP) 2023. The ministry explicitly stated that the RCMC requirement does not apply to the aforementioned remission-based schemes, allowing exporters to claim benefits without obtaining this certificate.

It is important to note that under the new FTP, an RCMC is still mandatory for exporters applying for authorisation to import or export most items, with the exception of those listed as 'Restricted' in the ITC (HS). 

The certificate is also required for applying for other benefits or concessions under the FTP. The ministry emphasised that these measures are distinct from the post-export remission-based schemes.

The RCMC serves as validation for exporters dealing with products registered with government-authorised agencies or organisations. 

Issued for a period of five financial years, the certificate is provided by Export Promotion Councils (EPCs), Commodity boards, Development Authorities, or other competent authorities in India, as per DGFT guidelines.

To obtain an RCMC, exporters must declare their primary business in the application submitted to the relevant registering authority. 

The application process requires an active Importer-Exporter Code (IEC), an updated IEC profile, and a linked Digital Signature token or Aadhaar e-Signature for submission.

The RoDTEP scheme offers exporters rebates on central, state, and local duties or taxes on exported goods that were not refunded under any other scheme. 

Complementing this, the RoSCTL scheme compensates for state and central taxes and levies, in addition to the duty drawback scheme, specifically for exports of apparel, garments, and made-ups.

Earlier this year, the government approved the continuation of the RoSCTL scheme until March 31, 2026.

Additionally, the RoDTEP scheme has been extended for another year, until September 30, 2025, albeit with lower refund rates ranging from 0.3 percent to 3.9 percent, down from the previous 0.5 percent to 4.3 percent.

(KNN Bureau)