Businesses must fulfill several regulatory requirements to operate smoothly. Obtaining an Electronic Bank Realization Certificate (e-BRC) is one such requirement. It is a crucial document for exporters in India, as it proves that the amount generated from exporting goods and services has been received. It also enables businesses to claim benefits provided under various government schemes. The process of obtaining an e-BRC may seem complex and lengthy, especially to those obtaining it for the first time. However, you can complete the procedure in a few simple steps. In this article, we have shared everything you need to know about e-BRC, from its importance to the steps involved in securing it and the procedure to print e-BRC from DGFT. Read on to find out!
Definition and Purpose of e-BRC
An e-BRC is an essential digital certificate for those in the export business. A bank issues this certificate to you to confirm that the buyer has made payment against your goods or services. The process involves providing banks with complete information about the total value of goods they aim to export. The banks then put the export transaction details in the Export Data Processing and Monitoring System (EDPMS) to maintain records. You must submit the shipping bills to the bank as soon as you receive the payment. After that, the bank cancels the items registered in the EDPMS and issues an e-BRC against the bill payments. The Directorate General of Foreign Trade (DGFT) introduced the concept in 2012. Before that, exporters were required to visit the bank to submit the bills and other necessary documents to obtain the hard copy of the certificate.
The government provides various benefits, including duty exemptions and subsidies under its Foreign Trade Policy (FTP). In order to avail the same, you must show a valid e-BRC. It is also necessary to report your earnings to the government authorities when filing income tax.
Process of Issuing and Receiving e-BRC from Banks
Here is the step-by-step procedure:
- After receiving the payment for the exported items, an e-BRC certificate is generated digitally by the bank.
- Then, it generates an XML file that includes all the information related to e-BRC.
- The bank signs the XML file using the DGFT signer, which must be registered with the DGFT before this process can be carried out.
- The e-BRC XML file is uploaded to the DGFT server through the website.
- DGFT reviews the file to verify the given information.
- After conducting verification, DGFT gives acknowledgement to the bank.
- After that, you can log in to the DGFT website to check the status of the certificate.
- You can then print e-BRC from DGFT.
Steps to Accessing e-BRC Status Online
Here are the simple steps to access e-BRC status online:
- Visit the DGFT website and go to ‘Services’ to select e-BRC.
- Select ‘View and print your e-BRC’
- Thereafter, the ‘eBRC details for Trade’ page will open. Here, you must enter your Import Export Code (IEC) and your bank’s IFSC code.
- Now, click the ‘Show Details’ tab to see all the e-BRCs shared by your bank.
In case you see an error while checking e-BRC, you must contact your bank to get it checked.
Importance of e-BRC for Exporters
Here are some of the reasons why e-BRC is essential rather beneficial for you:
- Time-efficient
With the introduction of e-BRC, you no longer need to invest time and effort in visiting the bank to obtain the Bank Realisation Certificate. The need to go to the regional branch of DGFT to submit the certificate has also been eliminated, as the whole process can be carried out online. You just have to apply for the certificate and the bank will issue a digital e-BRC automatically as you receive payments for the goods or services you export. Conformity with DGFT regulations
Per DGFT, exporters must obtain e-BRC, proving they’ve received payment for all their goods and services.
- Claim benefits
The government of India offers many benefits to exporters. These include various subsidies, exemptions, and loans at a fairly low cost. To avail themselves of these benefits, you must produce e-BRC.
- Easy access
e-BRC system maintains a digital record of all the export transactions. You can retrieve the record as and when needed by following a few simple steps.
- Ensures transparency
Making this digital document mandatory ensures that the amount earned through exports is reported accurately. It also confirms that you enter the correct figures while filing income tax.
How e-BRC Supports Export Incentive Claims?
Here is how you can claim your export incentives with the use of e-BRC:
To begin with, submit your shipping bills on the Indian Customs Electronic Data Interchange Gateway (ICEGATE). The information will automatically be shared with the DGFT.
Next, link your shipping bills with the e-BRCs to claim the incentives.
Thereafter, the DGFT decides the incentive amount to be granted. It does so by matching the Free on Board (FOB) value of exported goods and the amount received against them, as mentioned in the e-BRC.
As an exporter, you must ensure the bank reports the accurate e-BRC value. In case there is a discrepancy, the bank must make the necessary corrections to reflect the correct realised value. You should also enter the freight values, commission values and insurance in the refund application, as they do not form a part of the e-BRC.
Detailed Steps to Download and Print e-BRC
In order to obtain an e-BRC from a bank, you must follow the steps mentioned below:
- Log on to the DGFT website and enter the necessary information, including the IEC, the bank’s IFSC code, and the shipping bill number.
- Click ‘My Dashboard’ and choose ‘Repositories’. This will lead to a new page.
- Now, go to ‘Bills Repositories’ and click ‘Explore.’
- Click ‘Select Bill” and then ‘Bank Realisations (e-BRC)
- Select the ‘From and To Dates’ to enter the transaction range and click search.
- Here, you will see all the e-BRCs uploaded by the bank.
- Click on the relevant e-BRC to download it
- Click ‘Print eBRC’ to print the certificate.
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Conclusion
e-BRC is a vital document in the export business. It helps track a business’ export earnings and ensures government regulation compliance. In addition to verifying the receipt of export proceeds, it comes in handy when claiming export incentives from the government. It is easy to obtain an e-BRC. You can easily apply for it through their banks. The banks generate the certificate electronically and share it with the relevant authorities. By understanding and efficiently managing e-BRCs, you can enhance your operational efficiency and secure the benefits you are entitled to.
