Understanding the Differences Between IEC and RCMC for Exporters

Exporting goods can open new markets and increase business growth, but it also involves navigating various regulatory requirements. Two important documents exporters often encounter are the Importer Exporter Code (IEC) and the Registration Cum Membership Certificate (RCMC). Many exporters wonder if they need both and how these documents differ. This post explains the key differences between IEC and RCMC, their purposes, and when exporters require each.

Importer Exporter Code certificate displayed on a desk

What is an Importer Exporter Code (IEC)?

The Importer Exporter Code, commonly called IEC, is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India. It acts as a mandatory identification number for any business or individual involved in importing or exporting goods and services.

Purpose of IEC

• Legal requirement: No exporter or importer can ship goods without an IEC.

• Customs clearance: Customs authorities use the IEC to track shipments and clear goods.

• Bank transactions: Banks require IEC to process payments related to imports or exports.

• Government schemes: IEC is necessary to avail benefits under export promotion schemes.

  
  

How to get an IEC

Applying for an IEC is a straightforward process done online through the DGFT portal. The applicant must provide business details, PAN card, bank details, and address proof. Once approved, the IEC is valid for a lifetime unless cancelled.

What is a Registration Cum Membership Certificate (RCMC)?

The Registration Cum Membership Certificate, or RCMC, is issued by Export Promotion Councils (EPCs), Commodity Boards, or other government agencies. It certifies that the exporter is a registered member of a specific council or board related to their export product.

Purpose of RCMC

• Membership proof: Shows that the exporter belongs to a recognized export promotion body.

• Access to benefits: Enables exporters to claim incentives, subsidies, and participate in trade fairs.

• Product-specific: RCMC is often linked to particular commodities or sectors, such as textiles, handicrafts, or engineering goods.

• Compliance: Some export schemes require RCMC to verify exporter eligibility.

  
  

How to get an RCMC

Exporters apply to the relevant Export Promotion Council or Commodity Board based on their product category. The application involves submitting business registration documents, IEC, and product details. RCMC validity varies but usually lasts for a few years and requires renewal.

Registration Cum Membership Certificate displayed in a frame

Key Differences Between IEC and RCMC

| Aspect | Importer Exporter Code (IEC) | Registration Cum Membership Certificate (RCMC) |

|-----------------------|--------------------------------------------------|-------------------------------------------------------------|

| Issuing Authority | Directorate General of Foreign Trade (DGFT) | Export Promotion Councils or Commodity Boards |

| Purpose | Identification for import/export activities | Membership proof for export promotion bodies |

| Mandatory for Export | Yes, for all exporters and importers | No, only for exporters seeking specific benefits or schemes |

| Validity | Lifetime unless cancelled | Usually 3-5 years, renewable |

| Product Specificity | Not product-specific | Product or sector-specific |

| Use in Government Schemes | Required to avail export benefits | Required for certain export incentives and participation |

Do Exporters Need Both IEC and RCMC?

The short answer is every exporter must have an IEC, but having an RCMC depends on the export product and the benefits the exporter wants to access.

When IEC alone is enough

• Exporters dealing in general goods without specific export promotion council membership.

• Small exporters who do not plan to claim government incentives.

• Businesses focusing on direct export without participation in trade fairs or schemes.

  
  

When RCMC is necessary

• Exporters of products covered by Export Promotion Councils, such as textiles, leather, or handicrafts.

• Businesses aiming to claim export incentives like duty drawback, MEIS (Merchandise Exports from India Scheme), or participate in government-organized trade events.

• Exporters who want access to market research, training, and support from EPCs.

  
  

Example

A textile exporter must have an IEC to ship goods abroad. To claim benefits under the Textile Export Promotion Council and participate in international exhibitions, the exporter also needs an RCMC from the council.

How to Manage IEC and RCMC for Smooth Export Operations

• Apply for IEC first: It is the foundation for all export activities.

• Identify the relevant EPC or Commodity Board: Check if your product category has a council that offers RCMC.

• Keep documents updated: Renew RCMC on time and maintain accurate business details.

• Use IEC and RCMC for compliance: Present these documents during customs clearance and while applying for export benefits.

• Consult experts if needed: Export procedures can be complex; professional advice helps avoid delays.

  
  

Final Thoughts on IEC and RCMC for Exporters

Understanding the difference between IEC and RCMC helps exporters comply with legal requirements and unlock government support. While IEC is mandatory for all exporters, RCMC is optional but valuable for those seeking specific benefits or industry support. Exporters should evaluate their product category and business goals to decide if obtaining an RCMC makes sense.