Significance of e-BRC in the Export of Goods

e-BRC

An eBRC (Electronic Bank Realisation Certificate) is an essential digital certificate for those involved in the export business. It is issued by a bank as confirmation that the exporter has received payment from the importer against the export of goods. The Directorate General of Foreign Trade (DGFT) has created this electronic platform for Bank Realization Certificates (BRC). Exporters are required to declare the value of the products to be exported. Once all the payments against a shipping bill are received, an exporter can request their bank to close the entry into Export Data Processing and Monitoring System (EDPMS) and obtain the DGFT BRC. 

An eBRC is a very helpful certificate for export businesses as it provides a digital confirmation of payment from the importer. This means that businesses can keep track of their payments and make sure that they are receiving what they are owed. But what is it needed, and how does it work? This blog post will walk you through everything that you need to understand DGFT BRC.  

Purpose of Bank Realization Certificate (BRC)  

Under Foreign trade policy, there are several incentives for exporters, or we can say benefits associated with exporters. In order to avail of these benefits, the DGFT BRC is the critical document which the exporter holds as proof of exporting their products.   

The exporter needs to submit this form physically to the concerned regional authority of DGFT, and then the details of the export transaction are entered manually as per BRC. Obviously, this is a lengthy process and complicated while claiming the export incentives. Thus, to promote paperless trade, the DGFT introduced Electronic BRC in 2012, which enables the electronic transmission of foreign exchange realisation from banks directly to DGFT’s server.  

What is eBRC?

The eBRC platform enables electronic transmission of Foreign Exchange Realisation Information from Banks rather than going physically. This makes the export process further secured by the use of the digital certificate. At present, there are over 132 banks for which DGFT is providing this facility.   

Working Model of DGFT eBRC

The working process of eBRC is as follows: –  

• Once the exporter receives the payment in the bank account, export documents and the Electronic Foreign Inward Remittance Certificate (eFIRCs) are submitted to their respective banks.  
• The exporter’s bank will settle the bill in Export Data Processing and Monitoring System (EDPMS) and generates the electronic BRC on the DGFT website.   
• If you are exporting from India, banks will generate INR equivalent of the realized foreign exchange, according to the exchange rate that is defined by the Central Board of Excise and Customs (CBEC).  

• Now, the exporters can collect their proof of eBRC from their bank or from the DGFT website.   

What is the Importance of eBRC as an Exporter?

With the use of DGFT eBRC, there is minimal human intervention and less transaction cost for availing the export benefits to exporters. DGFT is already receiving information on shipping bills electronically through the ICEGATE (The Indian Customs Electronic Data Interchange Platform). Now, the integration of Bank realisation certificates linked from the banks can be attached to each shipping bill. The details as per the shipping bill and eBRC (the final payment received after the export) are matched so that the value at which the incentive is to be provided to the exporter is verified accurately. Thus, for filing the export incentive online, the exporters just have to link the relevant shipping bill through the ICEGATE portal and eBRC. There are no hard copies that need to be submitted separately to the DGFT website. If you are having difficulty in navigating the custom process, then assign a customs clearing agent to help you with the rest.    

How to View eBRC Status Online by an Exporter?

There are certain easy steps that allow the exporter to view the status of eBRC online: –  

• Go to the official DGFT website, and under services-eBRC, click on “View and print your eBRC”.   
• Then, the respective exporter will be taken to a page titled- “e-BRC details for Trade.”  
• On this page, the exporter needs to fill IEC code and IFSC code of the bank.   

Note: – The IFSC code should be of the bank where the payment from the overseas buyer will be realised.  

• Next, the exporter should click on “Show details”.  

• Then, the page will display all the e-BRC, which is uploaded by the bank.  
• For Print, the exporter can click on induvial e-BRC respectively.   

Points Need to Consider Related to eBRC while Filing the Incentives for an Exporter

There are certain things that you must know associated with eBRC while filing the incentives: –  

1. For the calculation of incentives, the value of export taken into consideration is either realised value as per eBRC or the value as per shipping bill, whichever would be less.   
2. While applying under any export incentives scheme, an exporter has to enter the Commission, Insurance and Freight details because eBRC does not hold this information.   
3. The exporter must check the realised value on the eBRC; if not accurate, then they should get it corrected by the bank.   
4. If there are multiple products in the shipping bill, then the value, whichever is less either on the shipping bill or eBRC, is proportionately distributed amongst all the products based on a multiplication factor.   
5. The multiplication factor is defined as the ratio between the realised value as per eBRC and the value as per the shipping bill.
   

Make Your E-commerce Business Seamless and Easy Through Amazon Global Selling

Whether you are a start-up or a well-established brand, Amazon’s global selling program makes your export from India seamless and easier. It will help you to take your business from your local city to the global market in 200+ countries and union territories. Irrespective of your business size, you can easily export your business by registering to the Amazon global ecommerce export program and reach millions of customers with higher chances of sales. With world-class shipping, logistics and warehouse facilities, this program will assist you in every step to help you run a successful export business. Join the network now!