Export Promotion Council for Handicraft (EPCH) Membership & RCMC

EPCH Membership registration & RCMC

Introduction:

EPCH is a non-profit organisation.  It’s an apex body formed under the companies act. Setting up EPCH aims to promote and preserve the traditional handicraft industry and promote handicraft export in the international market.

EPCH membership and registration cum membership (RCMC) certificates are two different registrations offered by the export promotion council.

The RCMC registration is explicitly for manufacturers and manufacturer-exporters. 

Importance of EPCH RCMC for merchants and manufacturers

Getting an EPCH RCMC registration is important for “MSMEs” manufacturers and merchants.

The export promotion council can help businesses grow through market access initiatives and various schemes. Exporters and manufacturers of handicraft products also enjoy tax benefits and the opportunity to get together in buyer-seller meets and trade fairs.

What are handicraft products?

Definition:

As per the established definition by the esteemed government committees, a handicraft product is described as:

“An Item or product produced through manual skills, with or without mechanical or electrical or other processes, which appeals to the eye, due to the characteristics of being artistic or aesthetic or creative or ethnic or being representative of cultural or religious or social symbols or practices, whether traditional or contemporary. These items or products may or may not have a functional utility and can be used as a decorative item or gift.“

Role of export promotion council for Handicrafts?

• Providing commercially helpful information and assistance to members in developing and increasing exports
• Offering professional advice and services to members in areas of technology upgradation, quality and design improvement, standards and specifications, product development, innovation, etc
• Organizing visits of delegations of its members abroad to explore overseas market opportunities
• Participating in specialized International Trade Fairs of handicrafts & gifts
• Holding Indian Handicrafts and Gifts Fair
• Interaction between exporting community and Govt. both at the Central and State level and representation in almost all the committees or panels of Central and State and represented in nearly all the committees or boards of Central and State
• To create an environment of awareness through Workshops on “Export Marketing, Procedures, and Documentation,” Packaging, Design Development, Buyer Seller Meet, Open House, etc., interaction with Central and State Govt. and various other similar programs.
• Dissemination of government notifications, orders, information on trade, and other relevant information to members

Cost of EPCH Membership registration?

As per the rules of the Export promotion council of handicraft, any person who wants to register with EPCH must get a membership before getting RCMC.

The registration can be done as a merchant or manufacturer exporter. The cost of Membership remains the same.

The fee for EPCH RCMC is as follows:

Particulars	EPCH RCMC Membership Fee
Entrance fee for the 1st year	₹2,500/-
Annual Fee	₹5,000/-
	₹7,500 + 18% GST
Total govt fees	INR 8,850/-

Applicants should pay the fee only for exporters and manufacturer-exporters.

If the applicant wants only Membership, then the Membership is granted without any additional cost.

Renewal and validity of EPCH RCMC

EPCH memberships are valid for up to 5 years. However, an annual renewal fee is to be submitted, which is due each year from the 1st of April and has to be submitted by the 30th of June.

EPCH RCMC renewal Fees for each annual year

Particulars	The annual renewal fee for EPCH
The renewal fee for each year	INR 5000 + 18% GST
Total govt renewal fee	INR 5,900/-

Benefits of EPCH membership registration=H2

• Buyer-seller meet
• Better infrastructure
• Tax relaxation for exporters
• Direct interaction between members and government bodies
• Helps create awareness and market development programmers
• Access to Data and various initiatives to improve the handicraft industry
• Members can take part in international trade events organized by EPCH.

EPCH guidelines for new exporters

i. Market entry: Exporters must select the right product for the market. After carefully selecting a market, exporters must find a suitable way to enter that market. They can enter the international market via direct or indirect method i,e, with the help of merchants or export houses.

ii. Participation in trade fairs: Exporters can also participate in trade fairs organized in India or foreign countries to explore market opportunities.

iii. Market research: Market research is also essential for exporters as it helps make the right decisions in the right direction.

iv. Export pricing: Pricing is essential in expanding the export market for new merchants or exporters. Effective pricing assumes strategic significance because of the lower technological base in developing economies.

v. Selection of agent: Many exporters with good products and effective pricing need help to select overseas agents. It is essential to evaluate multiple agents and have good contact with them to avoid such difficulties.

vi. Promotion: Exporter can promote their products through various means in their desired marketplace. Upgrading can help get recognition and expand their market sphere.

vii. Terms of payment: The nature of credit terms offered by suppliers is decisive and vital. The exporter should take caution while dictating.

viii. Export contracts: The export contract between the exporter and seller should be transparent without ambiguity. Both parties should be aware of what obligations and duties they suppose to perform.

ix. Export finance: Financing the export is an important aspect that export needs to plan. Financing of export happens in 2 stages.

x. Pre-shipment: For purchase, manufacturing, and for assembling of the product. 

xi. Post shipment: Financing is required for providing facilities to overseas customers.

xii. Other documents: The exporters must also take care of other mandatory documentation required for exports.

For this, they may take the assistance of DGFT, the Indian Institute of Foreign Trade (IIFT), the India Trade Promotion Organization (ITPO), Foreign Embassies in India, Buying Agents, Freight Forwarding Agents, etc.

EPCH Code of conduct for the Members of the council

While applying for the Membership for EPCH, applicants are required to sign the mandatory Code of conduct against child labour. 

It should be signed on a minimum of 10 rupees stamp and submitted along with the other necessary documents.

1. The members are responsible for ensuring that no child labour is used on their premises and the premises of the entities they are outsourcing from.

2. if any member is found violating the rule, will serve them with a show-cause notice to explain.

3. The explanation will further be placed before the Committee of Administration to enable it to decide on an action to be taken in respect of that violation.

4. If members violate the rules of the Code of conduct on more than 2 occasions, they will discontinue their Membership.

5. It is the responsibility of all the EPCH members to ensure strict compliance with the Code of conduct.

The Code of conduct shall apply to all the members of the export promotion council of handicraft. 

Conclusion:

The Export Promotion Council of Handicrafts is a perfect promotional body for the handicraft industry of India. 

It not only preserves traditional handicraft skills but also promotes them on the global stage and helps the traditional handicraft industry to grow in the local and international export markets. 

The RCMC membership program of EPCH is proven to be a boon for exporters and manufacturers as it has helped the industry grow significantly in domestic and international exports.