Handicraft Export Promotion Council – Registration & Export Benefits

The global appetite for authentic, handmade Indian products is soaring, with the Indian handicrafts market projected to reach astounding new heights in the coming years. For countless small businesses and talented artisans across India, this represents a golden ticket, and knowing How to Start a Handicrafts Business in India is the foundational step. Tapping into this international demand can transform a local workshop into a global brand, but the path to exporting can seem complex. This is where the Handicraft Export Promotion Council (EPCH) steps in as the most crucial government-backed partner for your business. This comprehensive guide is designed to walk you through the entire handicraft export registration process with EPCH, detailing the essential documents, step-by-step procedures, and the immense financial and strategic benefits you can unlock to capitalize on the vast handicraft export opportunities India has to offer.

What is the Handicraft Export Promotion Council (EPCH)?

The Handicraft Export Promotion Council (EPCH) is an apex non-profit organization established under the Ministry of Textiles, Government of India. Its primary and singular mission is to promote, support, maintain, and ultimately increase the export of Indian handicrafts. It acts as a vital bridge, connecting the creativity and craftsmanship of Indian exporters with the demands of global buyers. The council’s scope is vast, covering an extensive range of products that showcase India’s rich cultural heritage. This includes everything from intricate home décor items, handcrafted textiles, and shawls to fashion jewellery, eco-friendly products, furniture, and festive decorations. By serving as a central representative body, EPCH ensures that the Indian handicraft sector has a powerful voice on both national and international platforms, actively working to remove trade barriers and create a more favourable export environment. The Handicraft Export Promotion Council benefits extend far beyond simple promotion; it is a comprehensive support system designed to empower exporters at every stage of their journey.

Why is EPCH Registration a Game-Changer for Your Business?

For any entrepreneur looking to venture into the world of handicraft exports, registering with the EPCH is not just a procedural step—it’s a strategic business decision that can fundamentally change your growth trajectory. This registration provides the official recognition and support needed to navigate the complexities of international trade effectively. It elevates your business from being a local entity to a recognized exporter, opening doors to markets and opportunities that would otherwise be inaccessible. The benefits are tangible, covering financial incentives, market access, and brand credibility, making it one of the most powerful tools for scaling your operations and achieving sustainable success in the global marketplace.

Unlock Lucrative Government Schemes and Incentives

One of the most significant advantages of EPCH membership is gaining access to a wide array of government schemes and financial incentives. The key to unlocking these benefits is the Registration-cum-Membership Certificate (RCMC) issued by EPCH upon successful registration. This certificate is a mandatory document required to claim benefits under India’s Foreign Trade Policy. For instance, the RCMC makes you eligible for the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme, which refunds various embedded central, state, and local duties/taxes that are not credited or refunded under any other scheme. Furthermore, members can benefit from the Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes, which provide financial support for participating in international trade fairs, undertaking market research, and other export promotion activities. These schemes are specifically designed to reduce the financial burden on exporters and enhance the competitiveness of Indian handicrafts in the global market.

Gain Instant Credibility with International Buyers

In the world of international trade, trust and credibility are paramount. International buyers are often cautious when sourcing products from new, unknown suppliers. An EPCH membership serves as a powerful mark of authenticity and quality assurance. When a foreign importer sees that your business is registered with India’s apex export promotion council for handicrafts, it instantly signals that you are a legitimate, serious, and government-recognized exporter. This verification helps build immediate trust, reducing the perceived risk for the buyer and making them more confident in placing orders with you. This enhanced credibility can shorten negotiation cycles, lead to better business terms, and help you establish long-term, profitable relationships with clients worldwide.

Access Exclusive Global Markets and Trade Fairs

EPCH is renowned for organizing and facilitating participation in some of the world’s most prestigious trade fairs and exhibitions, including its flagship event, the IHGF Delhi Fair, which is one of the largest B2B handicrafts fairs in Asia. As a member, you gain the opportunity to participate in these events at highly subsidised rates, giving you a cost-effective platform to showcase your products to thousands of verified international buyers, buying agents, and wholesalers. Beyond these large-scale fairs, EPCH regularly organizes exclusive buyer-seller meets in specific countries, thematic exhibitions, and Indian pavilions at international events. Members also receive access to valuable market intelligence reports, trend forecasts, and trade data, helping you make informed decisions about which markets to target and what products are in demand. This direct market access is invaluable for generating leads and securing export orders.

Stay Ahead with Policy Advocacy and Industry Updates

The landscape of international trade is constantly evolving with changes in government policies, compliance requirements, and market dynamics. Staying updated on these changes is crucial for running a compliant and successful export business. EPCH acts as a powerful advocate for the handicraft export community, representing the industry’s interests and concerns to various government bodies. The council actively works with the government to formulate export-friendly policies and resolve trade-related issues faced by its members. Furthermore, EPCH keeps its members well-informed through regular circulars, newsletters, seminars, and workshops on topics like Foreign Trade Policy updates, GST compliance for exporters, customs procedures, and emerging market trends. This proactive communication ensures you are always aware of critical information that could impact your business, helping you adapt quickly and stay ahead of the competition.

The Step-by-Step Handicraft Export Promotion Council Registration Process

The Handicraft Export Promotion Council registration process is now a streamlined online procedure designed to be efficient and user-friendly. By following a clear set of steps and ensuring your documentation is in order, you can complete your handicraft export registration smoothly. This section provides an actionable, step-by-step guide to registering handicrafts for export India, ensuring you are well-prepared for each stage of the application. This structured approach simplifies what might seem like a daunting task, empowering you to quickly gain your RCMC and start leveraging the associated benefits.

Step 0: Essential Prerequisites for Registration

Before you begin the online application, it is crucial to have a few foundational business registrations in place. These are mandatory prerequisites for any business involved in export and import activities in India and form the bedrock of your compliance framework.

• Import Export Code (IEC): The IEC is a unique 10-digit code issued by the Director General of Foreign Trade (DGFT), Ministry of Commerce. It is a mandatory requirement for any individual or business to export or import goods. Without an IEC, you cannot legally ship your products out of the country. You can apply for it online through the official DGFT website.
• GST Registration: Goods and Services Tax (GST) registration is essential for your business, particularly for claiming GST-related export benefits. For a detailed walkthrough, you can follow our Ultimate Guide to GST Registration for Small Businesses. Under the GST regime, exports are treated as ‘zero-rated supplies’, which means you can either export without paying GST by furnishing a Letter of Undertaking (LUT) or pay GST and claim a refund later.
• Business Bank Account: You must have a current bank account opened in the name of your export business (e.g., your proprietorship firm’s name or your company’s name). All export-related transactions and payments will be routed through this account, and its details are required for the IEC and EPCH registration.

Step 1: Gather Your Documents

Having all your documents scanned and ready before starting the application will make the process much faster. Ensure that all scans are clear and legible. Here is a checklist of the documents you will need:

• A self-attested copy of your Import Export Code (IEC) certificate.
• A self-attested copy of the PAN Card of the proprietor, firm, or company.
• A self-attested copy of your GST Registration Certificate.
• Proof of Business Constitution:
  • For Companies/LLPs: A copy of the Certificate of Incorporation. If you are starting a new company, our guide on How to Register a Company in India: Complete Process & Checklist provides all the details.
  • For Partnership Firms: A copy of the registered Partnership Deed.
  • For Proprietorships: No separate document is usually required if the IEC is in the proprietor’s name.
• A statement on your official business letterhead declaring your export turnover of handicrafts for the last three financial years. If you are a new business with no prior exports, you must submit a statement declaring ‘NIL’ turnover.

Step 2: The Online Application on the EPCH Portal

The application for registering handicrafts for export India is completed online. The digital portal is designed to guide you through each section methodically.

1. Visit the Official Portal: Navigate to the official website of the Handicraft Export Promotion Council, which is www.epch.in. Look for a link or button that says “Member Registration” or “New Member Registration” to start the process.
2. Fill the Application Form: You will be directed to an online application form. Fill in all the required details with utmost accuracy. This will include your company name, address, contact details, IEC number, GSTIN, PAN, and business bank account information. Any discrepancy can lead to delays or rejection.
3. Upload Documents: The portal will prompt you to upload clear, scanned copies of all the documents listed in the previous step. Ensure you upload each document in the correct, designated field and that the file formats are as specified by the website.
4. Fee Payment: After filling the form and uploading the documents, you will be redirected to a secure payment gateway. You need to pay the annual membership fee. The fee structure is tiered and depends on your export turnover from the previous financial year. The latest fee details are always available on the EPCH website.

Step 3: Verification and Issuance of RCMC

Once you have successfully submitted your application and payment, the process moves to the verification stage. The officials at EPCH will meticulously review your application form and all the uploaded documents to ensure everything is correct and compliant. If they find any discrepancies or require clarification, they may contact you via email or phone. Upon successful verification, your application will be approved. The EPCH will then issue the Registration-cum-Membership Certificate (RCMC). This certificate is usually sent to you digitally via your registered email address. The typical processing time from submission to issuance of the RCMC is around 7-10 working days, provided all your information and documents are in order.

Maximizing Your Export Benefits for Handicrafts in India

Securing your RCMC from the EPCH is the critical first step. The next, equally important step is to actively leverage it to maximize the financial export benefits for handicrafts India offers. The Indian government has instituted several powerful schemes to make exports more competitive by refunding duties and taxes, thereby boosting the profitability of your business. Understanding and utilizing these schemes correctly is key to realizing the full benefits of handicraft export in India. These incentives are designed to improve your cash flow, reduce your operational costs, and ultimately make your products more attractive in the global market.

The RoDTEP Scheme: Getting Back Embedded Taxes

The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme is a cornerstone of India’s export promotion policy. In simple terms, this scheme refunds various hidden central, state, and local taxes that are embedded in the cost of your export products but are not refunded through the GST system. These embedded taxes can include things like VAT on fuel used for transportation, electricity duty on power consumed during manufacturing, and mandi tax. The refund is credited directly to your account in the form of a transferable duty credit scrip, which you can use to pay basic customs duty on future imports or sell to another importer. The rates of refund under RoDTEP are specified for different export products, and having an RCMC is a prerequisite to claim this significant benefit.

GST Compliance for Exporters: Two Smart Options

The GST regime offers two distinct pathways for exporters, allowing you to choose the one that best suits your business’s working capital needs. Both options ensure that taxes are not exported, making your products more competitive internationally.

• Option 1: Exporting under a Letter of Undertaking (LUT): This is the most popular option for exporters as it significantly helps with working capital management. By filing a Letter of Undertaking (Form GST RFD-11) on the GST Portal, you can export goods or services without paying any IGST upfront. This means you do not have to block your funds by first paying the tax and then waiting for a refund. The LUT is generally valid for one financial year, and it’s a simple online process for eligible taxpayers.
• Option 2: Exporting with IGST Payment: Alternatively, you can choose to pay the applicable IGST on your export invoice at the time of shipping. After the goods have been successfully exported, you can claim a full refund of this IGST amount from the government. This process is fairly automated and is linked directly to your shipping bill and GST returns. Once you file your GSTR-1 and GSTR-3B, and the details on your shipping bill match your returns, the refund is processed and credited to your bank account.

Duty Drawback: Reclaiming Customs Duty

The Duty Drawback scheme is another vital financial incentive that allows you to reclaim customs duties paid on imported raw materials, components, or inputs that are used in the manufacturing of your exported handicraft products. For example, if you import special varnishes, fabrics, or metal fittings to create your final export product, the customs duty you paid on these imports can be refunded to you under this scheme. The government specifies an All Industry Rate (AIR) of drawback for various product categories, which is a percentage of the FOB value of your export. This scheme ensures that domestic taxes and duties are not included in the final price of your export goods, helping you price your products more competitively on the global stage.

Let TaxRobo Handle Your Handicraft Export Registration and Compliance

Navigating the landscape of handicraft export registration, documentation, and compliance can feel overwhelming, especially when your primary focus should be on creating beautiful products and finding international buyers. This is where TaxRobo becomes your expert partner. We simplify the entire journey, from foundational registrations to ongoing compliance, ensuring you can focus on growing your business while we handle the complexities. Our team of experts specializes in helping businesses like yours enter the global market smoothly and efficiently.

We offer a comprehensive suite of services tailored for exporters:

• Hassle-free IEC and RCMC Application: We manage the entire application process for your Import Export Code and your handicraft export registration with EPCH, ensuring accuracy and speed.
• GST Registration and LUT Filing: We handle your GST registration and file your Letter of Undertaking (LUT) so you can export without blocking your working capital.
• Company/LLP Formation: For a more structured and scalable business, we can assist you with seamless Company or LLP formation.
• Expert Guidance on Export Documentation and Compliance: Our experts provide ongoing guidance on export documentation, customs procedures, and compliance with schemes like RoDTEP and Duty Drawback.

Get Expert Help for Your Export Business Today!

Conclusion

The global market holds immense potential for Indian artisans and handicraft businesses, and the Handicraft Export Promotion Council (EPCH) is the official gateway to unlocking this opportunity. A successful handicraft export registration is more than just a certificate; it’s your first and most crucial step toward accessing significant government benefits, gaining international credibility, and achieving sustainable global growth. By becoming an EPCH member, you position your business to compete effectively on the world stage. Don’t let paperwork and complex procedures hold you back from realizing your export dreams. Contact the experts at TaxRobo to ensure your handicraft export registration India process is smooth, compliant, and sets a profitable foundation for your international journey.

Frequently Asked Questions (FAQs)

1. Is EPCH registration mandatory to export handicrafts from India?

Answer: While you can technically export goods without an EPCH membership, obtaining the Registration-cum-Membership Certificate (RCMC) from EPCH is mandatory to avail benefits under the Foreign Trade Policy. This includes critical financial incentives like the RoDTEP scheme, Duty Drawback, and access to government-supported international trade fairs. Therefore, for any serious exporter, it is practically essential.

2. What is the validity of the RCMC certificate from EPCH?

Answer: The RCMC issued by the Handicraft Export Promotion Council is valid for a period of five years. The validity period starts from April 1st of the licensing year in which it was issued. To continue availing the benefits, the membership and the RCMC must be renewed before expiration.

3. Can an individual artisan without a registered company join EPCH?

Answer: Yes, absolutely. An individual artisan or craftsman can register with EPCH as a proprietor. The primary legal requirements are that the individual must have a PAN card, a current business bank account in their name (or the name of their proprietorship firm), and a valid Import Export Code (IEC) issued in their name.

4. How much does EPCH registration cost?

Answer: The cost of EPCH membership consists of a one-time entrance fee and an annual subscription fee. The fee amount is structured in tiers and is dependent on your total export turnover of handicrafts for the previous financial year. Businesses with lower turnover pay a lower fee. For the most accurate and up-to-date fee structure, it is always best to visit the official EPCH website.