Electronic Bank Realization Certificate (e-BRC)
Electronic Bank Realization Certificate (e-BRC)
Electronic Bank Realization Certificate (e-BRC) is an essential digital certificate for those in the export business. A bank issues it as confirmation that the exporter has received payment from the buyer against the export of goods or services. eBRC is an essential source of financial information and economic indicator. The present article briefs the Electronic Bank Realization Certificate (e-BRC).
Importance of Electronic Bank Realization Certificate (e-BRC)
Electronic Bank Realization Certificate (e-BRC) initiative by the Directorate General of Foreign Trade (DGFT) to digitize and systematically record foreign trade transactions.
- An eBRC is an electronically facilitated document that proves receipt of payment against an international trade transaction by an exporter.
- As mentioned above, eBRC is essential financial information and economic indicator source.
- Any firm applying for benefits under Foreign Trade Policy is required to furnish valid BRC as proof of realization of payment against exports made
- In simple terms, Electronic Bank Realization Certificate (e-BRC) is proof of export.
Purpose of an eBRC
As mentioned earlier, an exporter needs an eBRC to avail of the various export incentives (duty exemptions, subsidies, low-cost loans, etc.) offered by the government as part of its Foreign Trade Policy (FTP).
In India, the FTP and many export incentives it highlights are formulated and implemented by the DGFT. The DGFT also implements the eBRC platform, which allows banks to electronically upload to the DGFT server all foreign exchange realization-related information related to exports. This information is transmitted through a digital certificate, i.e., eBRC.
Furnishing of BRC – Earlier Procedure
The procedure in place earlier for furnishing Bank Realization Certificate was manual. An exporter had to submit BRC in physical form to the concerned Regional Authority of DGFT, and then the export transaction details as per BRC were entered manually. This was a lengthy process which made claiming export incentives a complicated process.
eBRC Module
DGFT introduced the eBRC Module to promote paperless trade, an integrated platform that enables the electronic transmission of Foreign Exchange Realization Information from Banks directly to DGFT’s server. The use of the digital certificate further secures this process.
Now with eBRC, an exporter doesn’t need to go to his Bank for a Bank Realization Certificate, which has made the process of claiming export incentives and benefits from DGFT and other export agencies much more accessible.
Migration of e-BRC Portal to New IT platform
DGFT Vide a Trade Notification dated 30th June 2022 announced that the existing eBRC Module is now being upgraded to a new IT platform. It is proposed to discontinue the earlier version from the end of July 2022. Existing users of the eBRC Module will need to migrate o the new environment urgently so that services to the exporting community do not get impacted.
236981Electronic Bank Realization Certificate (e-BRC)
Working Principle of eBRC
Banks generate Bank Realization Certificates upon receipt of export proceeds.
- The Bank’s Staff can generate XML files containing information about BRCs or eBRCs, digitally sign the file and upload it on DGFT’s server daily or twice daily at a pre-determined frequency.
- The Bank will upload the rupees equivalent of the realized foreign exchange based on the exchange rate defined by the Central Board of Excise and Customs (CBEC).
- Once the XML files are uploaded, and the server has acknowledged the same to the Bank, DGFT’s Module allows exporters to view the status of their eBRCs on DGFT’s website.
Procedure to View Status of eBRC online
The following few simple steps which an exporter has to follow to see the status of his eBRC.
- Access the official website of DGFT, and under Services-eBRC, select “View and print your eBRC.”
- The link will then be taken to the new “e-BRC Details for Trade” page. On this new page, the exporter must fill in his IEC and IFSC Code of his Bank.
- By clicking on the “Show Details” option, All e-BRCs uploaded by the Bank will be displayed.
Note: If you notice an error in the eBRC when checking its status, the exporter must contact the Bank to rectify it.
- The exporter can click the Print option to get the concerned eBRC document.
Procedure to Claim Export Incentives using eBRC
- Access the official website of DGFT and log in to the DGFT’s eBRC application.
- Click on the uploading BRC option to upload the document. Please select the relevant file from the file system and upload it.
- Once the server has verified the user and data, it will provide the results in XML or tabular format per the user’s choices.
- Furnish eBRC as proof of export to avail of the export incentives
- Submit the eBRC with integrated GST or input tax credit tax refund application in the case of export of services.
Get Import Export Code through IndiaFilings
The Import Export Code is a primary document that is necessary for commencing Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.
