Export Promotion Council for Handicrafts (EPCH) is non-profit organisation.
Its 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) certificate are two different registration offered by the export promotion council. The RCMC registration is explicitly for manufacturers and manufacturer-exporters. Importance of EPCH RCMC for merchants & 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.
As per the established definition by the esteemed government committees, a handicraft product is described as:
“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.”
These are the following documents required to obtain the export promotion council for handicraft membership and RCMC certificate.
For proprietorship Firm
1. A GST certificate is required
2. Import-export code issued by DGFT
3. Signature of the applicant on the letterhead of the entity
4. Duly signed code of conduct on a minimum 10 rupee stamp
5. A valid copy of the MSME udyam certificate is required for manufacturer exporters.
6. Self-declaration of the proprietor on entities letterhead that the product mentioned in the udyam certificate also includes handicraft products
For partnership Firm
1. Copy of GST certificate
2. Import-export code issued by DGFT
3. Copy of partnership deed attested by notaryDuly signed code of conduct on a minimum 10 rupee stamp
4. Duly signed code of conduct on a minimum 10 rupee stamp
5. A valid copy of the MSME udyam certificate is required for manufacturer exporters.
6. One of the partners should attest to the list of partners on the firm’s letterhead.
7. Self-declaration of the letterhead of the firm stating that the product mentioned in the udyam certificate also includes handicraft products
For limited companies
1. Copy of GSTIN
2. Import-export code issued by DGFT
3. Copy of directors identification number
4. Self-attested MOA & AOA or Certificate of incorporation.
5. Duly signed code of conduct on a minimum 10 rupee stamp
6. All the directors should sign the list of directors on letterhead.
7. A valid copy of the MSME udyam certificate is required for manufacturer exporters.
8. Board resolution in favour of companies deciding to be registered under EPCH membership.
9. Self-declaration of the letterhead of the firm stating that the product mentioned in the udyam certificate also includes handicraft products
To export handicraft products from India, businesses must obtain an RCMC (Registration Cum Membership Certificate) from the Export Promotion Council for Handicrafts (EPCH). This certification is essential for availing export benefits and incentives under various government schemes.
• Login to the DGFT portal with your username. If you need a user account on DGFT, create a fresh one on the Portal.
• Once the ID is created, navigate to the service section for EPCH RCMC registration and apply for e-RCMC.
Navigate to service section
• Start a fresh application and fill out the required form per your business nature.
• Submit the required fee as per the guidelines. The EPCH membership RCMC registration will be provided to the applicant within 30 days of application.
As per the rules and regulations set by the Export Promotion Council for Handicrafts (EPCH), any individual or entity looking to register with EPCH must obtain a membership before applying for an RCMC (Registration Cum Membership Certificate).
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:
Entrance fee for the 1st year
Annual Fee
GST
Total Govt Fees
Rs.2,500/-
Rs.5,000/-
18%
INR 8,850/-
Note: Should pay the fee only in the case of exporter and manufacturer-exporters.
If the applicant wants only Membership, then the Membership is granted without any additional cost.
EPCH membership is valid for upto 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
Renewal fee for each year
Total govt renewal fee
INR 5000 + 18% GST
INR 5,900/-
Becoming a member of the Export Promotion Council for Handicrafts (EPCH) offers numerous advantages for businesses in the handicraft industry. From networking opportunities to financial benefits, EPCH membership empowers exporters to expand their reach and enhance their trade capabilities.
• Exclusive Buyer-Seller Meets: Gain access to domestic and international buyer-seller meets to expand your business network and boost sales.
• Enhanced Infrastructure Support: Benefit from improved facilities and resources designed to strengthen the handicraft industry.
• Tax Benefits for Exporters: Avail tax relaxations and incentives that promote seamless export operations.
• Direct Government Interaction: Engage with policymakers and government bodies to address industry concerns and advocate for favorable trade policies.
• Market Development & Awareness Programs: Stay updated with market trends, industry insights, and promotional initiatives to enhance business growth.
• Access to Data & Industry Initiatives: Utilize valuable trade data, reports, and government-backed initiatives to improve production, marketing, and export strategies.
• Participation in Global Trade Events: Showcase your products at international trade fairs and exhibitions organized by EPCH, opening doors to global markets.
The Export Promotion Council for Handicrafts (EPCH) plays a crucial role in supporting Indian handicraft exporters by providing assistance, market access, and policy advocacy. Key functions include:
• Providing commercially useful 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 delegation of its members abroad to explore overseas market opportunities
• Organizing Indian Handicrafts and Gifts Fair in New Delhi
• 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 represents in almost all the committees or panels 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 notification, orders, information on trade and other relevant information to members
Expanding into international markets requires strategic planning and adherence to export regulations. Here are the key guidelines for exporters: 1. 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.
2. Participation in trade fairs: Exporters can also participate in trade fairs organized in India or foreign countries to explore market opportunities.
3. Market research: Market research is also important for exporters as it helps take the right decisions in the right direction.
4. Export pricing: Pricing is important in expanding the export market for new merchants or exporters. Effective pricing assumes strategic significance because of the lower technological base in developing economies.
5. Selection of agent: Many exporters with good products and effective pricing need help in selecting overseas agents. It is important to evaluate multiple agents and have good contact with them to avoid such difficulties.
6. Promotion: Exporter can promote their products through various means in their desired marketplace. Promoting can help get recognition and expand their market sphere.
7. Terms of payment: The nature of credit terms offered by suppliers is decisive and important. The exporter should take caution while dictating.
8. 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.
9. Export finance: Financing the export is an important aspect which export needs to plan. Financing of export happens in 2 stages.
1. Pre-shipment: For purchase, manufacturing, and for assembling of the product.
2. Post shipment: Financing is required for providing facilities to overseas customers.
10. Other documents: The exporters must also take care of other mandatory documentation required for exports. For this, they may take the assistance of DGFT, Indian Institute of Foreign Trade (IIFT), India Trade Promotion Organization (ITPO), Foreign Embassies in India, Buying Agents, Freight Forwarding Agents etc.
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. It is the members’ responsibility to ensure that no child labour is being 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 members to ensure strict compliance with the code of conduct.
6. Code of conduct shall apply to all the members of the export promotion council of handicraft.
The Export Promotion council of handicraft is an excellent 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.
The number of members also rose significantly from 35 in the year of its inception to over 8500+ in 2022. The total revenue generated from export has also risen significantly from Rs. 386cr in 1986 to INR 33,253 cr as of 2022.
Therefore, it is advisable for the manufacturers of handicraft products, to get Membership-cum registration certificate of EPCH. Which can help them in the promotion of their business on a global stage. It will be beneficial for the new startups as well to acquire an EPCH registration for their handicraft business.
EPCH membership is valid for upto 5 years. However, an annual membership fee of INR “5,000 + 18% GST” is required to be paid for renewal.
EPCH is a non-profit organization created under the companies act. EPCH aims to promote the handicraft industry in the local and international export markets.
| Particulars | EPCH RCMC Membership Fee |
|---|---|
| Entrance fee for the 1st year | Rs.2,500/- |
| Annual Fee | Rs. 5,000/- |
| Rs. 7,500+ 18% GST | |
| Total govt fees | INR 8,850/- |
To become a member of the export promotion council for handicrafts, interested applicants must create a user ID on the DGFT portal.
Exporters and Manufacturer-exporters of handicraft products, or MSMEs who deal with handicraft goods, can apply for registration cum membership certificate for the export promotion council for handicrafts.
The Membership and registration cum membership certificate is issued by the EPCH council within 30 working days.
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