When exporting products, businesses are required to show proof that they have been compensated or paid for the goods they sent overseas. This is where the DGFT BRC or Bank Realisation Certificate comes into the picture. For Indian exporters, this certificate is important for claiming incentives and benefits under the government’s Foreign Trade Policy. In current years, the procedure of getting this certificate has been made effortless via the introduction of e-BRC (electronic Bank Realisation Certificate).
What is a Bank Realisation Certificate (BRC), and what is its Purpose?
It is a certificate provided by banks as approval that the exporter has received payment next to the goods’ export from his buyer.
There are many incentives or benefits for exporters under Foreign Trade Policy. In order to get these benefits, BRC is an essential document which an exporter is required to submit as evidence of export. (1)
Is DGFT BRC Mandatory for export?
DGFT BRC (Bank Realisation Certificate) is compulsory for sellers sending goods and software products outside where shipping bills or SOFTEX forms are included. Shipping bills are documents put forward to customs to get their approval and load the products for export. It involves information about the products, such as cost and quantity. SOFTEX forms are indispensable for organisations involved in the export of software or services associated with it. But if you are a freelancer or exporter that does not involve shipping bills or SOFTEX forms, you do not need to furnish a Bank Realisation Certificate.
What is an e-BRC?
An eBRC is a significant digital certificate for people involved in the export business. A bank provides this certificate to you to verify that the buyer has made payment next to your products or services. The procedure involves providing banks with overall details about the complete value of goods they target to export. The banks then submit the export transaction information in the Export Data Processing and Monitoring System (EDPMS) to sustain records. You should submit the shipping bills to the bank as soon as you get the payment. After that, the bank cancels the products listed in the EDPMS and provides an e-BRC next to the bill payments.
The DGFT introduced the idea in 2012. Prior to that, exporters needed to visit the bank to submit the bills and other essential documents to get the certificate’s hard copy of the certificate.
The government offers different benefits, including subsidies and duty exemptions under its Foreign Trade Policy. In order to attain this, you must furnish an accurate e-BRC. It is also essential to report your income to the government authority when filing income tax.
How to Obtain a BRC from DGFT?
In 2012, e-BRC came into effect. This way, DGFT automated the procedure of gathering a Bank Realisation Certificate. Before that, exporters had to visit the bank physically in order to obtain a DGFT BRC.
The exporter used to submit the BRC to the DGFT’s regional office of their locality. The application had to be manually amended, and it was necessary to provide the proper BRC details. This took enough time, and it was a very difficult task to apply for the export initiatives taken by the government
Now, with the launch of e-BRC, it has become effortless for exporters to get a Bank Realisation Certificate. They are no longer required to visit the bank or the DGFT’s office to get the certificate.
How to Check DGFT BRC Online?
Here are the important steps that you can go after to verify your e-BRC on the DGFT portal.
- Initially, you will need to visit the DGFT’s website.
- After coming to the site, click on the ‘My Dashboard’ tab. Now, the next step will be to go with the ‘Repositories’ option.
- It will send you to one more page, where you will be required to click the ‘Explore’ button, which you will get under the ‘Bills Repositories’ tab.
- After that, you need to select the option ‘Bank Realisations Certificates (e-BRC)’ from the ‘Select Bill’ drop-down list present on the page.
- It will request you to fill in the ‘From Date’ and ‘To Date’. Once you are completed, click on the ‘Search’ button.
- Now, you will find that the banks have uploaded all the electronic bank realisation certificates, and they are shown on the screen.
Which Documents Are Required for a DGFT BRC?
You will need to provide the following documents for the Bank Realisation Certificate:
- Proof of Business Name and Address.
- IEC or Importer Exporter Code.
- Shipping Bill for all export dealings.
- Bank account information in which you have obtained the payment.
How to Get Incentives from DGFT BRC?
Exporters can obtain the incentives from the Bank Realisation Certificate by doing the following things:
- Exporters have to furnish the shipping bill online on the platform of the Indian Customs Electronic Data Interchange Gateway (ICEGATE). It will automatically give all the necessary information regarding the shipping bill with the DGFT.
- Whoever runs an import-export business must attach all the appropriate shipping invoices with the e-BRCs to claim export incentives.
- As an export business, whenever you assert an incentive under any DGFT plan, the Directorate will determine the incentive’s value that you will be attaining.
- DGFT will first reconcile the Free on Board worth of the products exported. It will also meet the overall realised value next to the export and then offer the incentive to the related exporter.
- Whenever you apply for an export incentive, you must ensure that the bank addresses the eBRC value and carries out an overall accomplished or realised value in the bill.
Final Words
DGFT BRC or e-BRC is a significant document in the export business. It assists in tracking a business’ export revenues and assures conformity with government rules. In addition to checking the receipt of export proceeds, it is accessible when asserting export incentives from the government. By knowing and effectively managing e-BRCs, you can improve your operational effectiveness and safeguard the benefits you are authorised to.
