RCMC – Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL)
Introduction
India’s export landscape for chemicals, cosmetics, and dyes is a vital part of the economy and a key contributor to foreign exchange earnings. The Basic Chemicals, Cosmetics & Dyes Export Promotion Council, popularly known as CHEMEXCIL, serves as the official government body supporting exporters in these industries. To avail themselves of government incentives and market development support, exporters must obtain the Registration-Cum-Membership Certificate (RCMC) from CHEMEXCIL. This blog explores the significance, benefits, challenges, and requirements of RCMC issued by CHEMEXCIL for exporters in India.
What is CHEMEXCIL and RCMC?
CHEMEXCIL
Established in 1963, CHEMEXCIL is a non-profit organization set up by the Ministry of Commerce & Industry to promote and develop exports of basic chemicals, dyes, intermediates, cosmetics, soaps, essential oils, specialty chemicals, lubricants, and castor oil from India. It provides exporters with guidance, assistance, market intelligence, and access to government schemes to boost competitiveness in the global market.
Why is RCMC from CHEMEXCIL Necessary?
Regulatory Requirement
Under the Foreign Trade Policy and Handbook of Procedures (Chapter 2, Para 2.91), exporters must be registered with the relevant Export Promotion Council—CHEMEXCIL for chemicals and related products—to legally access export incentives and subsidies.
Eligibility for Export Incentives
Only exporters holding valid RCMC certificates can claim incentives such as:
- Duty Drawback
- Market Development Assistance (MDA)
- Market Access Initiative (MAI) subsidies
- Export finance assistance
- Participation in international trade fairs and exhibitions supported by the government.
Credibility and Access to Government Support
Being a registered member with CHEMEXCIL and holding RCMC enhances an exporter’s credibility among buyers, banks, and government bodies. CHEMEXCIL acts as a liaison between exporters and government departments, facilitating faster resolution of export-related issues and assistance in compliance with regulatory requirements.
Support for Business Expansion
EXPORTERS get access to valuable trade leads, visa recommendations for international business trips, export policy updates, and export financing assistance—all streamlined through CHEMEXCIL membership enabled by RCMC.
Registration-Cum-Membership Certificate (RCMC)
The Registration-Cum-Membership Certificate (RCMC) is a mandatory certificate provided by export promotion councils like CHEMEXCIL, certifying that an exporter is a registered member eligible to avail benefits under India’s Foreign Trade Policy. It is essential for exporters of any product category under the council’s jurisdiction to participate in government export schemes and incentive programs successfully.
Membership in CHEMEXCIL and validity of RCMC is subject to annual renewal with payment of membership fees. The RCMC certifies your eligibility for export benefits and confirms your active standing as an exporter in the chemicals, cosmetics, or dyes sector.
Benefits of RCMC and CHEMEXCIL Membership
Access to Government Export Promotions
Through RCMC, exporters can participate in government-promoted schemes like MAI and MDA which help subsidize costs related to:
International exhibitions and trade fairs
Trade delegations and buyer-seller meets
Market exploration and development activities.
Visa Facilitation
CHEMEXCIL issues visa recommendation letters to its members, simplifying the process of obtaining business visas for international travel, which is crucial for timely business meetings and deal closures abroad.
Trade Enquiries and Market Intelligence
Members receive frequent trade enquiries via email and updated statistical information on India’s export performance and global chemical market trends, which aids strategic decision-making.
Export Financing Assistance
CHEMEXCIL provides exporters with assistance in securing export credit and financing through various institutions and banks, helping them meet working capital needs and expand export operations.
Policy Advice and Government Interface
Members benefit from professional advice on export-import policies and have access to CHEMEXCIL’s interventions with government agencies to expedite incentives and resolve compliance issues swiftly.
Documentation Support
Being a member simplifies obtaining important trade documents such as the Registration-Cum-Membership Certificate (RCMC) and Non-Preferential Certificates of Origin, essential for customs and export clearances.
Challenges in Obtaining RCMC from CHEMEXCIL
Application Process and Documentation
Applicants must submit various documents including Importer Exporter Code (IEC), PAN card, company incorporation documents, and certificates such as District Industries Center (DIC) or Small Scale Industry (SSI) certification proving manufacture or export of chemicals under council purview. Collecting and correctly submitting these documents can be cumbersome for first-time exporters.
Timely Annual Membership Renewal
RCMC is linked to annual membership, which must be renewed every year by April 1st with payment due by June 30th. Failure to renew leads to membership cessation, requiring fresh registration and potentially blocking access to export benefits.
Address and Corporate Structure Changes
Any change in the exporter’s address, constitution, or partnership requires submission of amended IEC codes and supporting documents within one month. Delays or omissions in this compliance can delay RCMC renewal or amendments.
Lack of Clarity for New Exporters
New exporters may face confusion in identifying the correct council or understanding the distinction between CHEMEXCIL membership and RCMC certification, which can delay registration and eligibility for benefits.
Conclusion
Obtaining the RCMC from CHEMEXCIL is a critical step for exporters in the chemicals, cosmetics, and dyes sectors of India who wish to leverage government incentives, market development support, and credibility in international markets. While the registration and renewal processes require attention to documentation and compliance obligations, the benefits—ranging from export subsidies to visa facilitation and policy support—make it indispensable.
By aligning with CHEMEXCIL, exporters gain a trusted partner committed to enhancing India’s standing in global chemical exports. Exporters are encouraged to ensure their RCMC and membership stay active to maximize their competitiveness and to access the evolving benefits offered by the government and the council.
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