Banks issue an e-BRC (Electronic Bank Realisation Certificate) as evidence of a transaction being conducted successfully between an exporter and an importer. It specifically shows that payment has been received by the exporter.
Why do exporters need e-BRCs?
Exporters need to declare the value of the goods they export. After receiving all due payments against a shipping bill, exporters can ask their banks to close that particular entry into the EDPMS (Export Data Processing and Monitoring System) and procure an EBRC. All businesses that want to apply for benefits under the Foreign Trading Policy are required to provide a valid BRC as proof of payment from exports they have made. This document proving the transaction has been completed is crucial for this process.
The e-BRC is an initiative to reduce paper waste and move into a more efficient paperless system.
What benefits can exporters avail with an e-BRC?
The Foreign Trade Policy (FTP) offers exporters a variety of benefits:
- Duty exemptions
- Low-interest loans
- And more
The Director General of Foreign Trade (DGFT) is in charge of the export incentives offered. The entire process can now be done online. Banks can upload documents to the DGFT server as well as foreign exchange information.
What is the e-BRC process?
Here is an explanation of how the e-BRC process works:
- After an exporter receives payments to their bank account as well as the entire value of the shipping bill, within nine months of the shipping bill date, eFIRCs (Electronic Foreign Inward Remittance Certificates) must be submitted to the respective banks.
- The exporters’ bank then closes the bill in EDPMS ( Export Data Processing and Monitoring System) and generates an e-BRC through the DGFT website.
- The bank then has to upload the Indian Rupee equivalent of the received foreign currency. This exchange rate is determined by the Central Board of Excise and Customs (CBEC).
- Once this is done, exporters can collect the e-BRC from their bank or directly from DGFT.
How are incentives claimed with the e-BRC?
An electronic shipping bill is generated on the ICEGATE (Indian Customs Electric Data Interchange) website. This information is automatically shared with the DGFT at the same time. Exporters have to link the appropriate shipping bills with the e-BRC to be able to claim export incentives.
The DGFT then decides the value of exports that are eligible for incentives. The DGFT matches the FOB (Free on Board) value of the exported goods mentioned on the shipping bill against the total value received from exports shown in the e-BRC.
Exporters have to make sure that the EBRC value reported by the bank shows the total amount received. In the event that the amount is incorrect, the bank must correct it.
While this may seem a little complicated, Amazon Global Selling offers support and guidance throughout the export process. Sellers can choose to have their earnings credited to their Indian bank account as well. Sellers can also avail support through Amazon Global Selling to procure e-BRC and other important documentation.
Easy e-commerce exports with Amazon
Frequently Asked Questions
1. How can an exporter check their e-BRC?
Go to the DGFT website, https://www.dgft.gov.in/CP/, and enter the Import-Export Code and eleven-digit IFSC code. Select <FACILITATION>, and then proceed to click on <VIEW AND PRINT E-BRC>.
2. Do all exporters need e-BRCs?
Any business that seeks to avail of export incentives or benefits under the Foreign Trade Policy must furnish a valid BRC that proves they have received payment for their exports. Exporters can ask their banks to close the entry in EDPMS and collect an e-BRC.
3. What else is the e-BRC used for?
Other than receiving incentives under the FTP, e-BRCs also help exporters claim GST and act as crucial financial documents. This document is also an important economic indicator.
4. How are e-BRC and eFRIC different?
The e-BRC is a certificate issued by banks against shipping bills for exports. The eFRIC is issued for any funds received from foreign countries through a bank for their customers.
5. Do exporters and international sellers on Amazon need an e-BRC?
Yes, all international sellers and exporters on Amazon need to get e-BRCs so they can avail the benefits.