Unit 2

UNIT-2
Product planning and for Import and Export

Export promotion councils in India and Commodities Board of India:
“Export Promotion Councils is basically PROMOTING, SUPPORTING AND
ASSISTING firms in entering international markets and achieving optimum
opportunities from their international business activities and thereby
encouraging exports in India” In order to support the exporters the
Government of India has setup EPC.
Export Promotion Councils and Commodity Boards are two distinct types of
organizations in India that play crucial roles in promoting exports and
regulating the production and marketing of specific agricultural commodities.
Here's an overview of both:
1. Export Promotion Councils (EPCs):
Export Promotion Councils are non-profit organizations established by the
Government of India to promote and facilitate the export of specific goods or
products from India. These councils work closely with the Ministry of
Commerce and Industry and various government departments to boost exports
and represent the interests of exporters in their respective sectors. There are
numerous EPCs in India, each dedicated to a particular industry or product
category. Some of the notable ones include:
 Gems and Jewelry Export Promotion Council (GJEPC): Promotes the
export of gems and jewelry.
 Apparel Export Promotion Council (AEPC): Focuses on the export of
textiles and apparel.
 Pharmaceuticals Export Promotion Council (Pharmexcil): Supports the
pharmaceutical industry's exports.
 Engineering Export Promotion Council (EEPC): Promotes engineering
goods and services exports.
 Spices Board India: Facilitates the export of spices from India.
These councils offer a range of services to exporters, such as market research,
trade information, trade facilitation, policy advocacy, and participation in
international trade exhibitions.
2. Commodity Boards:
Commodity Boards are statutory bodies established under various acts of the
Indian Parliament. They primarily focus on the regulation and development of
specific agricultural or horticultural commodities. Commodity Boards play a
crucial role in ensuring the quality and standards of these commodities, as
well as facilitating their production, processing, and marketing. Some of the
prominent Commodity Boards in India include:
 Coffee Board of India: Responsible for regulating coffee production,
processing, and marketing.
 Tea Board of India: Promotes the cultivation, production, and export of
tea.
 Rubber Board of India: Regulates the production and marketing of rubber
and rubber products.
 Coconut Development Board (CDB): Supports the coconut industry
through research and development.
 Spices Board India: Apart from its role as an EPC, it also works as a
Commodity Board for spices.
These boards are essential in maintaining the quality and competitiveness of
Indian agricultural products in both domestic and international markets.
Role of Export Promotion Council:

Export Promotion Councils (EPCs) play a crucial role in promoting and
facilitating exports from a country. They are industry-specific organizations
established by the government to support and represent the interests of
exporters within their respective sectors. The roles and of Export Promotion
Councils include:
 To project India's image abroad as a reliable supplier of high-quality goods
and services.
 EPCs encourage and monitor the observance of international standards
and specifications by exporters.
 The EPCs keep abreast of the trends and opportunities in international
markets for goods and services and assist their members in taking
advantage of such opportunities in order to expand and diversify exports.
Functions of Export Promotion Council:
 To increase participation in trade fairs, exhibitions and buyer-seller in India
and in Abroad.
 To provide commercially useful information and assistance to their
members in developing and increasing their exports.
 To provide new information such as about technology upgradation,
quality upgrade, design upgrade to the exporters.
 To organize visits of delegation from EPC to abroad to explore new
overseas opportunities.
 To promote export interaction between export community and the state
and the central government.
 To provide statistical data of imports and exports of countries, data of its
members and data relevant to international trade.
Registration Cum Membership Certificate (RCMC)

Export Promotion Councils are set up by the Government of India to assist
Indian exporters in expanding their businesses to the international markets.
The main role of a council is to promote the product category that it handles
and support exporters in that industry.
These EPCs provide Registration Cum Membership Certificate (RCMC) to
exporters so they can benefit from various schemes and assistance provided by
these authorities.
An exporter who wants to obtain an RCMC has to declare the business in the
application form submitted to the respective EPC. For instance, a handicraft
exporter must follow the process and submit the application to the Export
Promotion Council for Handicrafts (EPCH).
What is RCMC?
An exporter can become a member of any of the Export Promotion Councils
(EPCs), post which, an RCMC is granted by the EPC.
To register as a manufacturer or exporter, the applicant must submit all the
required documents as mandated by the EPC.
With the increasing use of internet and technology, most EPCs have now made
this process paperless and online.
An RCMC is usually issued by the Federation of Indian Export Organizations
(FIEO), respective Export Promotion Councils (EPC) or Commodity Boards.
These organizations work for the promotion and development of different
export businesses across varied product categories.
This certificate signifies that the holder is registered with the respective EPC or
FIEO.
Why is RCMC required?

As an exporter, obtaining an RCMC will benefit your business in many ways:
 Authorization to export or import restricted items
 Ability to claim various benefits under the Foreign Trade Policy
 Benefits offered by the customs department and central excise authorities
 Export two or more products that fall under different categories
 Ability to claim export incentives and subsidies under schemes like
Merchandise Export from India Scheme (MEIS),
Rebate of State and Central taxes & Levies (RoSCTL),
Remission of Duties & Taxes on Exported Products (RoDTEP) and
Service Export from India Scheme (SEIS)
 Letter of Undertaking (LUT) under GST for export of goods without payment
of duty
 Benefits under the Foreign Trade Policy (FTP)
Documents required for RCMC

While each EPC needs a different set of documents to apply for RCMC, there
are some common requirements for exporters:
• Duly filled and signed RCMC application form of the particular export council
• IEC (Importer Exporter Code)
• Permanent Account Number (PAN)
• Membership fee payment receipt of the respective export council
• Self-certified copy of the company’s partnership deed
• Self-Certified copy of the certificate that is issued by the Registrar of
Companies
• Last three years Services Export Data certified by Chartered Accountant (CA)
of the company
• GST registration certificate
Export Credit and Guarantee Corporation of India (ECGC)

Export Credit and Guarantee Corporation of India Limited, was established in
the year 1957 by the Government of India to strengthen the export promotion
drive by covering the risk of exporting on credit.
What is ECGC?
Government owned enterprise
Provides credit insurance facilities to exporters and banks in India
Works under administrative control of Ministry of Commerce & Industry
Managed by a Board of Directors comprising representatives of the
Government, Reserve Bank of India, banking, insurance and exporting
community
It has evolved various export credit risk insurance products to suit the
requirements of Indian exporters and commercial banks
The seventh largest credit insurer of the world, essentially an export promotion
organization
Seeking to improve the competitive capacity of Indian exporters by giving them
credit insurance covers comparable to those available to their competitors
from most other countries
It keeps its premium rates at the lowest level possible.
Role of ECGC
 Provides a range of credit risk insurance covers to exporters against loss in
export of goods and services
 Offers guarantees to banks and financial institutions to enable exporters
obtain better facilities from them
 Provides Overseas Investment Insurance to Indian companies investing in
joint ventures abroad in the form of equity or loan.
 Economic difficulties or balance of payment problems may lead a country to
impose restrictions on either import of certain goods or on transfer of
payments for goods imported
Functions of ECGC
 To encourage and facilitate globalization of India’s trade.
 Provides a range of credit risk insurance covers to exporters against loss in
export of goods and services.
 Offers guarantees to banks and financial institutions to enable exporters to
better facilities from them Obtain.
 Provides Overseas Investment Insurance to Indian companies investing in
joint ventures abroad in the form of equity or loan.

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UNIT-2

Product planning and for Import and Export

Role of Export Promotion Council:

Registration Cum Membership Certificate (RCMC)

Why is RCMC required?

Documents required for RCMC

Export Credit and Guarantee Corporation of India (ECGC)

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