In exercise of powers conferred under the Foreign Trade Policy 2009-14, the Director General of Foreign Trade introduces an electronic procedure of filing of Bank Realization Certificate (BRC).
What is Bank Realisation Certificate?
Bank Realisation Certificate (BRC) is issued by a bank after realisation of export proceeds in the country. It is an important document required for claiming benefits under various FTP schemes. In addition, BRC data is used by VAT, Income tax and Drawback departments. Moving towards paperless trade and with a view to reduce transaction cost, DGFT, with effect from August 17 this year, has introduced eBRC and stopped accepting physical copy of BRC. The eBRC module developed by DGFT enables electronic transmission of foreign exchange realisation from banks to DGFT server. This process is made secure by use of digital certificate.
eBRC is available for Chapter 3, DEPB and DFIA. It will be extended to Export Obligation Discharge Certificate (EODC) within a month. “DGFT is aiming to be the most digital friendly department in the government and adoption of electronic means will strengthen transparency, speed and responsiveness of the department while bringing down the transaction cost for everyone
At present, for claiming benefits under various schemes of Foreign Trade Policy, exporters have to obtain Bank Realisation Certificate (BRC) from banks in the existing formats prescribed at Appendix 22A (physical exports) and 22B (deemed exports) of Handbook of Procedure -Vol.1(Appendices and Aayaat Niryaat Forms) and submit the same to the Directorate General of Foreign Trade (DGFT) manually. With the introduction of electronic BRC system, banks will issue and transmit BRC’s electronically to DGFT’s server replacing the manual mode of obtaining and submitting BRC. The revised process flow with technical guidelines are available on the DGFT’s website dgft.gov.in under the ‘e-BRC’ icon.
The existing system of physical BRC along with the new system of ‘e-BRC’ will however, run concurrently for a period of one month from the date of issue of this Public Notice for ensuring smooth transition. Thereafter, issuance and transmission of ‘e-BRC’ to DGFT in electronic form would be mandatory.
1. Uploading of BRC data by banks can be done at any time and it should be electronically transmitted on a daily basis.
2. Electronic issuance of BRC has started with effect from 05.06.2012. Physical submission of BRC would continue concurrently for one month from 05.06.2012. BRCs which have been issued manually after 01.04.2012 shall be converted in the digital (XML) format by the banks and uploaded on DGFT server. This exercise may be completed by 31.07.2012.
3. Banks shall upload the rupees equivalent of the realised foreign exchange, based on the monthly exchange rate notified by Central Board of Excise and Customs (CBEC). In case the realisation is in a denomination other than the notified currency, the rates given by RBI shall be adopted. In case exchange rate is not available from RBI then banks will do currency conversion as per their present existing practice.
e-BRC details available in the DGFT server will not contain the details of amount of commission paid. This amount has to be provided by the exporter at the time of filing online application.
The net foreign exchange earnings (in foreign currency) reflected in e-BRC, transmitted by banks would indicate FOB value (as per valuation made by custom authorities on the shipping bill). While granting Chapter 3 benefits, RA shall consider the net foreign exchange earnings. In case of shortfall in foreign exchange realization with respect to the shipping bill FOB value, pro rata distribution of realized foreign exchange against each export item will be made by the system itself.