What is eBRC and What an Exporter Needs to Know?

When exporting goods, it is important for businesses to receive proof that they have been paid for the products they sent abroad. This is where the Bank Realisation Certificate (BRC) comes into play. For exporters in India, this certificate is essential for claiming benefits and incentives under the government’s Foreign Trade Policy. In recent years, the process of getting this certificate has been made easier through the introduction of eBRC, or electronic Bank Realisation Certificate. This article will explain what eBRC is and why it is important for exporters.

What is a Bank Realisation Certificate (BRC)?

A Bank Realisation Certificate (BRC) is a document issued by a bank that confirms an exporter has received payment from their overseas buyer for the goods they have exported. This certificate acts as proof of payment and is crucial for exporters to claim various government incentives and benefits.

Purpose of BRC for Exporters

Exporters in India can avail themselves of several benefits and incentives from the government under the Foreign Trade Policy. These benefits are provided to encourage exports and help Indian businesses grow globally. To access these benefits, an exporter needs to submit proof that they have successfully received payment for their exports. This is where the BRC comes in, as it serves as evidence that the exporter has been paid for their goods.

What is eBRC?

Previously, the process of getting a BRC was done manually. Exporters had to physically visit their banks, collect the BRC in paper form, and then submit it to the relevant authorities, such as the Directorate General of Foreign Trade (DGFT). This process was time-consuming and often complicated.

To make things easier, the Indian government introduced the eBRC system. The eBRC (electronic Bank Realisation Certificate) is an online platform that allows banks to send information about export payments directly to the DGFT’s servers electronically. This means that exporters no longer need to go to the bank to collect the BRC in paper form.

How eBRC Works

Here’s how the eBRC system works:

1. Bank Generates eBRC: When an exporter receives payment for their goods, the bank generates the eBRC. The bank then creates an XML file that contains all the important details about the export transaction.
2. Uploading the eBRC: The bank digitally signs the file and uploads it to the DGFT server once or twice a day. This ensures that the information reaches the DGFT securely and promptly.
3. Currency Conversion: The bank uploads the payment information in Indian Rupees (INR), using the exchange rate provided by the Central Board of Excise and Customs (CBEC).
4. Viewing the eBRC: Exporters can log into the DGFT’s website to check the status of their eBRC. They can view and print their eBRC whenever required.

Steps for Exporters to View and Print eBRC Online

To view or print their eBRC, exporters need to follow these simple steps:

1. Go to the DGFT website.
2. Under the Services section, select eBRC and then click on View and Print Your eBRC.
3. On the new page, the exporter needs to enter their IEC Code and the IFSC code of their bank (the bank where the payment was received).
4. Click on Show Details. The exporter will now see a list of all their uploaded eBRCs.
5. They can print any eBRC by clicking on the Print button next to the relevant certificate.

Benefits of eBRC for Exporters

The eBRC system has made the process of claiming export incentives much easier and faster for exporters. Some of the key benefits include:

1. Less Human Intervention: Since the process is electronic, there is very little human involvement, which reduces the chances of errors or delays.
2. Lower Costs: The eBRC system reduces the cost of processing export incentives as exporters no longer need to submit paper documents physically.
3. Faster Processing: The online system allows the DGFT to process incentives much faster, as all the required information is available electronically.
4. Linking with Shipping Bills: The DGFT can link the eBRC with the exporter’s shipping bills electronically. This allows for faster verification of the payment and the value of the exported goods.

Important Points to Remember for Exporters

Exporters should keep a few things in mind when using the eBRC system:

1. Realised Value vs. FOB Value: When calculating incentives, the value used is either the Realised Value (the actual payment received by the exporter) or the FOB (Free on Board) Value as per the shipping bill, whichever is lower.
2. Commission, Insurance, and Freight: The eBRC does not capture details related to commission, insurance, or freight. Exporters must enter these details separately when applying for incentives.
3. Checking Realised Value: Exporters should always check the Realised Value reported by the bank in the eBRC. If there is any error, they should contact the bank to correct it.
4. Multiple Products: If an exporter has multiple products in a single shipping bill, the realised value is distributed proportionately among all the products. This distribution is done using a multiplication factor, which is the ratio of the realised value to the FOB value.

How the Multiplication Factor Works

The multiplication factor is calculated using the following formula:

Multiplication Factor (M)=FOB Value actually realised in Rs. as per eBRCFOB Value as per Shipping Bill\text{Multiplication Factor (M)} = \frac{\text{FOB Value actually realised in Rs. as per eBRC}}{\text{FOB Value as per Shipping Bill}}Multiplication Factor (M)=FOB Value as per Shipping BillFOB Value actually realised in Rs. as per eBRC​

This multiplication factor ensures that incentives are provided correctly based on the actual payment received for each product.

Other Uses of eBRC Data

The data collected through eBRC is not only used by the DGFT. The information about export transactions is also shared with other government agencies to streamline various processes. For example:

• State Governments: Data is shared with 14 state governments to facilitate export-related processes at the state level.
• GST Network: The DGFT has signed an MOU with GST Network (GSTN) to share data related to foreign exchange realisation and Import Export Code (IEC). This helps streamline the processing of export-related transactions under the Goods and Services Tax (GST) system.

Conclusion

In summary, the eBRC system has revolutionized the way exporters in India claim benefits and incentives for their exports. By automating the process and integrating it with banks and the DGFT, the system has made it faster, easier, and more cost-effective for exporters to prove that they have been paid for their goods. With less paperwork, reduced human intervention, and faster processing times, the eBRC is a significant step towards paperless trade in India. For exporters, understanding how to use the eBRC system can make a big difference in ensuring smooth transactions and quick access to the incentives they are entitled to.Also Read: Navigating Export Finance: Tips for First-Time Exporters