BRC FLL FORM| What does BRC mean?


Definition:Bank Realization Certificate
Category:Business » Banking
Country/Region:India India

What does BRC stand for?

Bank Realization Certificate (BRC), a certificate that banks issue to show that an exporter has received payment from his buyer for the export of goods, is called a Bank Realization Certificate. BRCs are issued upon the payment is made for each export shipment. It can be used to claim benefits under the Foreign Trade Policy (FTP).

Certificate for Electronic Bank Realization

Electronic Bank Realization Certificate (BRC) or eBRC is issued by banks to the exporter for the purpose of claiming benefits under the various schemes of the Foreign Trade Policy. eBRC stands for electronic trade.

The DGFT created an electronic platform to issue Bank Realization Certificates. Using the eBRC platform banks can electronically send foreign exchange realizations from their banks to the DGFT Server. This process is secured by the use of a digital certificate. We will be discussing the Electronic Bank Realization Certificate (BRC), or eBRC, in this article.

Bank Responsibilities

These are the functions that the bank is responsible for:

  • Create e-BRC.Generate XML. Upload the file to DGFT Server. Transmit foreign exchange realized value to the DGFT Server without converting it into Indian rupees. Convert currency in accordance to the notified RBI rates.

Exporter’s Responsibilities

Exporters are required to:

  • Log in to the eBRC portal and log in.

What is the Work of the Server?

It is implied that uploading certificates takes place through the DGFT server. Let’s take a deeper look at what the server can do for us:

  • Facilitate the uploading of file generated by the bank.Process the file and store e-BRC.Generate acknowledgement XML.Enable e-BRC to the applicant.Providing the facility of viewing the status of e-BRC.Sharing of e-BRC information with Government or Dept/Agencies.Provide banks with the facility of updating the database of its branch.Assist the bank officer to further delegate power to subordinate staff for uploading the file.
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Requirements for the Certificate

The digital certificate must contain 2048 characters. It must comply with SHA-2 standards and be approved by the Controller of Certifying Authorities. Acceptable certificates of Class 2 or 3 are: The DGFT will identify the authorized signatory.

Repository for Shipping Bills

The DGFT maintains a Repository of Shipping Bills that allows exporters to automatically capture and link the e–shipping bill as well as the e–BRC data. Any relevant scheme may use shipping bills from the repository.

Revenue Authority

Exporters had to provide physical copies of BRCs to the Revenue Authority in order to be eligible for exemption. With effect from 17.08.2012, this requirement was removed. This was due to the fact that the inward remittances are linked with DGFT’s software system where the details can be electronically transferred.

  1. What is a Bank Realization Certificate (BRC), and how can it help you?
  2. What’s the purpose of BRC
  3. What is eBRC?
  4. How does eBRC work?
  5. How can an exporter view the status of eBRC online
  6. What does eBRC mean for exporters?
  7. Important points about eBRC and filing of incentives to an exporter
  8. Other uses for eBRC

What is a Bank Realization Certificate (BRC), and how can it help you?

A Bank Realisation Certificate, or BRC, is a document issued by banks to confirm that an exporter received payment from his buyer for goods.

What’s the purpose of BRC

There are several benefits or incentives for exporters under Foreign Trade Policy. These benefits can be availed by exporters who submit the BRC as proof of export.

What is eBRC?

Manual was the procedure for furnishing Bank Realisation Certificate. An exporter had to submit BRC in physical form to the concerned Regional Authority of DGFT, and then the details of export transaction as per BRC were entered manually. It was a long process, making it difficult to claim export incentives.

To promote paperless trade, DGFT introduced the eBRC module, an integrated platform which enables electronic transmission of Foreign Exchange Realisation Information from Banks directly to DGFT’s server. This is further protected by the use of a digital certificate.

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Using eBRC, exporters don’t have to visit their bank to obtain a Bank Realisation Certificate. This has made it much easier to claim export incentives and benefits from DGFT, as well as other agencies. At present, there are 132 banks for which DGFT is providing this facility.

How does eBRC work?

Banks issue a Bank Realisation Certificate when they receive export proceeds. Once the export proceeds have been received, the bank’s staff can create an XML file containing the information of BRCs and eBRCs. The file is digitally signed by the bank’s staff and uploaded to DGFT’s server daily, twice per day, at a predetermined frequency.

Banks can upload rupee equivalent of the realized foreign exchange, based on the exchange rates that are defined by the Central Board of Excise and Customs.

After the XML files have been uploaded and the Bank has acknowledged the same, DGFT’s module permits exporters to see the status of their eBRCs online at DGFT.

How can an exporter view the status of eBRC online

An exporter must follow a few steps to determine the status of his eBRC.

  • Go to DGFT’s site and select Services-eBRC. Click “View and Print your eBRC”.
  • The exporter will then be taken to the page “e-BRC details for trade”
  • Here exporter has to fill in his IEC Code and IFSC Code of his Bank. The IFSC Code must be the Bank that will receive the payment from the overseas buyer.
  • Next, he must click on “Show Details”.
  • All e-BRCs uploaded to the Bank will be displayed
  • Exporter can click on “Print” to print individual eBRCs

View and print your eBRC option on DGFT’s Home Page

eBRC Details for Trade Page

Example of an eBRC

What does eBRC mean for exporters?

As mentioned earlier, with eBRC now there is minimum human intervention and less transaction cost for granting export benefits to exporters. DGFT already receives information electronically for shipping bills through EDI ports.

Now, with the integration with banks, it can also receive details about foreign currency realization details which can be linked with each shipping bill. The information as per shipping bill (FOB Value of goods exported) and eBRC (Final payment received against export) is matched so that the value at which incentive is to be provided to the exporter can be verified.

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For EDI Shipping Bills, an exporter can file for an incentive online by linking the relevant shipping bill with eBRC. The same is not required to be submitted in hard copy to DGFT.

Important points about eBRC and filing of incentives to an exporter

  • The value of export is taken into account for calculation of incentives. It is either Realized value as per eBRC, or FOB value per Shipping Bill.
  • Exporters must enter information about the Commission, Insurance, and Freight details when applying for any scheme. eBRC doesn’t capture this information.
  • Exporters should verify the realised value reported on eBRC by banks. If there is an error, they should have it corrected by the bank
  • Multiple products are included in a shipping invoice. The FOB or realised value, whichever is lower, is divided proportionally among all products. This is done using a multiplication factor.
  • Multiplication factor refers to the ratio of realised value and FOB values as indicated on a shipping bill

Multiplication Factor M = FOB Value in Realized Rs. as per eBRC / FOB Value as per Shipping Bill

  • Bank commissions should not be subtracted from the realised value reported by eBRC.

You can refer FAQs provided by DGFT about eBRC for further doubts about using eBRC for claiming incentives.

Other uses for eBRC

Other government agencies can also access information about transaction-level exports that eBRCs have captured. DGFT has entered into MOUs for data sharing with 14 state governments as well as 2 central government agencies. 

The DGFT also signed an MOU to GST Network (GSTN), which allows for the sharing of foreign exchange realisation data and Import Export Code data. This will strengthen GST on Exports. This will make it easier for export-related transactions to be processed under GST.

  1. What is a Bank Realization Certificate (BRC), and how can it help you?
  2. What’s the purpose of BRC
  3. What is eBRC?
  4. How does eBRC work?
  5. How can an exporter view the status of eBRC online
  6. What does eBRC mean for exporters?
  7. Important points about eBRC and filing of incentives to an exporter
  8. Other uses for eBRC

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