DGFT Mandates 'Mode of Export of Services' Field in eBRC 

Effective May 1, 2025, the Directorate General of Foreign Trade (DGFT) will implement a mandatory new field titled “Mode of Export of Services” in the Electronic Bank Realisation Certificate (eBRC) format for all service exports.

What’s Changing?

When exporters of services upload or certify their eBRCs (especially those linked to IRM), they will now have to select the "Mode of Export of Services" from one of four categories defined by the World Trade Organisation (WTO) under GATS (General Agreement on Trade in Services).

This is being done to:

• Improve the accuracy of export data
• Align India’s reporting with international standards

What Is the 'Mode of Export of Services?

When India exports services to other countries, these services can be delivered in different ways or "modes". The WTO's General Agreement on Trade in Services (GATS) identifies four primary modes of service delivery across international borders. These are now being formally recognised in the eBRC system for data reporting purposes.

The Four Modes of Services Exports:

Mode 1: Cross-Border Supply

The service is provided from India to a foreign client without the movement of either the service provider or the consumer. The interaction happens virtually, and there is no physical contact between the provider and the recipient.

Examples:

• Software development or IT support provided remotely
• Remote business consulting or advisory services
• Telemedicine services delivered from Indian healthcare professionals to patients abroad

Mode 2: Consumption Abroad

The foreign consumer travels to India to consume a service. In this case, the transaction physically happens in India, but the economic benefit comes from a foreign client.

Examples:

• Medical tourism (foreign patients receiving treatment in Indian hospitals)
• Education (foreign students enrolling in Indian universities or institutes)
• Tourism services such as hotels, tour packages, and hospitality are consumed by international visitors

Mode 3: Commercial Presence

The Indian service provider establishes a business presence in another country. This could be in the form of a subsidiary, branch office, or joint venture abroad.

Examples:

• Indian IT companies opening offices in the US or Europe
• Indian banks operating international branches
• Indian consultancy firms are setting up partnerships in foreign countries

Mode 4: Presence of Natural Persons

An individual from India travels to a foreign country temporarily to provide a service. Unlike Mode 3, there’s no business setup abroad—just the physical presence of a skilled individual.

Examples:

• Indian engineers working on overseas construction projects
• IT professionals travelling for short-term consulting roles
• Indian doctors or healthcare experts providing services under international assignments

What Does This Change Mean for Exporters?

From May 1, 2025, every eBRC related to services exports must clearly specify the correct mode of service export. Exporters who are certifying their eBRCs—particularly those linked to IRM (Import Remittance Messages)—will be required to select one of the four modes while completing their documentation.

This field is mandatory and must be filled correctly to complete the certification process. Failure to provide this information may lead to delays or rejection in eBRC processing.

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Frequently Asked Questions (FAQs)

1. What is a Bank Realisation Certificate (BRC)?

A BRC is an official document issued by a bank confirming that the exporter has received payment from a foreign buyer for a particular export transaction. It's a proof of payment required to claim export benefits from the government.

 2. What is an e-BRC?

An e-BRC is the electronic version of the Bank Realisation Certificate. Introduced by DGFT in 2012, it allows banks to submit payment details digitally, making the export documentation process faster and paperless.

 3. Who issues an e-BRC?

The Authorised Dealer (AD) bank, through which the exporter receives the foreign payment, issues the e-BRC after verifying the export documents and payment details.

 4. What details are included in an e-BRC?

An e-BRC contains:

• Exporter’s name and IEC code
• Shipping bill number
• Invoice amount & currency
• Date of payment realisation
• Amount received in INR
• Foreign buyer information
• AD Bank details

5. Why is the e-BRC important for exporters?

It serves multiple purposes:

• Proof of export payment received
• Mandatory for claiming export incentives (MEIS, SEIS, RoDTEP, etc.)
• Needed for GST refunds
• Ensures compliance with DGFT, RBI, and GST laws
• Supports data sharing with other regulatory bodies

6. How is an e-BRC used for claiming export benefits?

Exporters must submit e-BRCs to the DGFT as part of their documentation when applying for benefits under government export schemes. Without it, benefits like duty drawback or GST refunds cannot be processed.

7. What’s the process for obtaining an e-BRC?

Here’s a step-by-step summary:

• Exporter ships goods/services.
• The buyer makes payment.
• Exporter submits export documents and efirc to the bank.
• The bank verifies and generates the BRC.
• The bank uploads a digitally signed e-BRC to the DGFT portal.
• The exporter can then view or download the e-BRC from the DGFT dashboard.

8. What is the new update introduced by DGFT?

The Directorate General of Foreign Trade (DGFT) has mandated a new field titled ‘Mode of Export of Services’ in the Electronic Bank Realisation Certificate (eBRC) format for services exports. This requirement comes into effect from May 1, 2025.

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