RCMC – Shellac & Forest Products Export Promotion Council (SHEFEXIL): Facilitating Growth of India’s Forest Sector Exports
Introduction
India’s forest products and shellac sector represents a unique blend of traditional industry and natural resource utilization. With increasing global demand for organic and sustainable products, India’s shellac and forest produce exports have gained prominence. The Shellac & Forest Products Export Promotion Council (SHEFEXIL) was constituted by the Government of India to promote and develop these exports.
A vital export certification is the Registration-Cum-Membership Certificate (RCMC), issued by SHEFEXIL, which authorizes exporters to access various government export incentives and promotional services.
This blog discusses SHEFEXIL and RCMC, the crucial need for RCMC, the benefits it provides to exporters, challenges faced during the process, and concludes with the importance of this certification in enhancing India’s export competitiveness.
What is SHEFEXIL and RCMC?
Shellac & Forest Products Export Promotion Council (SHEFEXIL)
SHEFEXIL was established in 2002 under the aegis of the Ministry of Commerce and Industry to promote India’s shellac, resin, lac, and non-wood forest products. The council facilitates export development by conducting market research, organizing trade fairs, buyer-seller meets, and advocating favorable policies for exporters.
SHEFEXIL covers products like shellac, lac resin, charcoal, gums, resins, and other forest produce, significantly contributing to India’s natural product exports.
Why is RCMC from SHEFEXIL Necessary?
Regulatory and Legal Compliance
The Directorate General of Foreign Trade (DGFT) requires exporters to register with the appropriate Export Promotion Council and hold a valid RCMC to avail export incentives. SHEFEXIL is the designated EPC for shellac and forest product exporters.
Access to Export Incentives and Subsidies
RCMC holders gain eligibility for export promotion schemes such as:
- Duty draw back and remission of duties and taxes on exports
- Market Access Initiative (MAI) for participation in overseas trade fairs
- Market Development Assistance (MDA) for promotional activities
These incentives assist exporters in improving price competitiveness and market reach.
Establishing Exporter Credibility
Having a valid RCMC enhances an exporter’s credibility with foreign buyers, financial institutions, and regulatory authorities, facilitating trade financing and market trust.
Eligibility for Trade Promotion and Market Development Events
Only exporters with a valid RCMC can participate in SHEFEXIL’s international trade fairs, buyer-seller meets, and export promotional delegations.
Registration-Cum-Membership Certificate (RCMC)
The RCMC is an official certificate issued by SHEFEXIL verifying an exporter’s membership and registration under the Foreign Trade Policy of India. This certificate is mandatory for exporters seeking to participate in SHEFEXIL supported schemes, claim government subsidies, and benefit from export-related services.
Benefits of RCMC and SHEFEXIL Membership
Access to Government Export Schemes
RCMC status enables participation in government-backed export schemes offering financial support to exporters for international marketing efforts.
Participation in International Exhibitions
SHEFEXIL supports members’ presence at global trade events such as BIOFACH and other natural products fairs, enhancing visibility and market penetration.
Export Documentation Assistance
The council facilitates export documentation, including Certificates of Origin required by customs and foreign buyers’ import compliance.
Market Intelligence and Research
Members benefit from detailed market reports, trade data, and policy updates to aid decision-making.
Training and Skill Development
SHEFEXIL conducts workshops designed to upgrade quality standards, technology adaptation, and compliance management skills of exporters.
Policy Advocacy
The council serves as a voice for exporters in government deliberations, helping frame policies conducive to forest products export growth.
Challenges in Obtaining RCMC from SHEFEXIL
Documentation and Compliance Burden
Exporting businesses face comprehensive documentation requirements including IEC code, PAN, GST registration, export performance, and company incorporation proofs, which may challenge new exporters.
Renewal and Timely Compliance
Renewal of RCMC is required periodically, with exporters needing to comply with export performance norms to maintain membership.
Product Definition and Scope
Exporters must ensure their products fall within SHEFEXIL’s defined export product list to avoid application issues.
Processing Delays
Verification and administrative processing may delay the issuance of RCMC certificates despite digitized systems.
Conclusion
The Registration-Cum-Membership Certificate (RCMC) issued by the Shellac & Forest Products Export Promotion Council (SHEFEXIL) is a crucial certification empowering Indian exporters in the niche forest products segment. It unlocks access to government incentives, market development programs, and export facilitation services that amplify India’s global market share in shellac and forest products.
Although challenges such as documentation and renewal requirements must be navigated, the benefits afforded by RCMC membership significantly outweigh the hurdles. For exporters committed to tapping into the global natural product market sustainably, acquiring and maintaining RCMC with SHEFEXIL is an essential strategic investment.
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