DGFT eBRC Certificate

Electronic bank realization certificate is issued by banks to the exporter for the purpose of claiming benefits under the various schemes of the Foreign Trade Policy. e-BRC is an initiative to promote paperless trade and the DGFT has created an electronic platform for Bank Realization Certificate. Using the e-BRC platform, banks can electronically transmit foreign exchange realization from banks to the DGFT server. This process is secured by the use of a digital certificate

Is it Mandatory to get e-BRC Certificate?

For all those who are exporting their products to any country, yes e-BRC is compulsory for them. BRC is a statement that will prove that you have received a payment from the customer online into a bank within the time frame of 9 months failing which RBI may send you a notice to show the payment of the export you did.

How e-BRC Functions?

• Any Bank generates Bank Realization Certificate upon receipt of export proceeds. Once bank receives request, Bank’s Staff generates XML file containing information of BRCs or e-BRCs, digitally signs the file and upload it on DGFT’s server daily or twice in a day at a preset frequency.
• Banks upload rupees equivalent of the realized foreign exchange based on the exchange rate which is defined by Central Board of Excise and Customs (CBEC).
• Once all the XML files are been uploaded on the server, server sends an acknowledgement for the same to the Bank, DGFT’s module allows exporters to view status of their e-BRCs on DGFT’s website.

With e-BRC there is minimum human intervention and its easy and simple to operate to get export benefits. DGFT is already receiving information for shipping bills electronically through EDI ports, now with this integration with banks it is getting the foreign currency realization details too which can be linked to each shipping bill. The information as per shipping bill (Free on Board (FOB) Value of goods exported) and e-BRC (Final payment received against export) is matched so that the value at which incentive benefits is to be provided to the exporter can be verified and maintained electronically.

In case of EDI Shipping Bills, while filing for an incentive benefits online an exporter simply has to link the appropriate shipping bill and e-BRC. Hard copies are not required to be submitted to DGFT for the same.

Indirect Benefits of e-BRC

Information about transaction level exports captured by e-BRCs is also shared with other government agencies. DGFT has signed Memorandum of Understanding (MOUs) with fourteen state governments and two central government agencies for sharing this data. To make stronger the process of GST on Exports, DGFT has also signed a Memorandum of Understanding (MOU) with GST Network (GSTN) for sharing foreign exchange realization and Import Export Code data. This will make it easier to process export related transactions under GST.

Mandatory points associated with e-BRC & filing of incentives for an Exporter:

• For calculation of incentives, the value of export taken is either Realized value as per e-BRC or Free on Board (FOB) value as per Shipping Bill whichever is less.
• While applying for any incentive scheme, an exporter has to enter the Insurance, Commission, and Freight details as e-BRC does not capture this information
• Exporters must check the realized value mentioned by bank on e-BRC, if in case of an error, exporter must get it corrected by the bank
• In case of multiple products in a shipping bill, the realized value or free on board (FOB) value, whichever is less is proportionately distributed amongst all the products based on a multiplication factor
• The multiplication factor is the ratio between realized value and free on board (FOB) value as per shipping bill
• Multiplication Factor (M) = FOB Value actually realized in Rs. as per e-BRC / FOB Value as per Shipping Bill
• Bank’s commission should not be deducted from the realized value reported in e-BRC.

There are few important steps which an exporter has to compile to see the status of their e-BRC. These are:

• Visit DGFT’s website and under Services-eBRC. Click  “View and print your e-BRC”
• You will be then taken to another page titled “e-BRC Details for Trade”
• Here you have to fill in your IEC Code and Bank IFSC Code. (IFSC Code should be of the Bank where the payment will get released)
• Next, click on “Show Details”
• You will see all e-BRCs uploaded by the Bank
• You can click “Print” on individual e-BRCs to print that specific certificate.