All Things An Exporter Should Know About e-BRC Online
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eBRC(Electronic Bank
Realization Certificate) or BRC is provided by banks to the exporter to claim
advantages under the foreign trade plan's various systems. eBRC is a drive to
advertise paperless trade, and also the DGFT has produced a digital network for
Bank Realization Certification. Utilizing the eBRC system, banks can digitally
transmit forex realization from financial institutions to the DGFT server. The
use of digital certification protects this procedure. DGFT BRC is a certificate
issued by Banks to confirm that the exporter has received payment against his
buyer's export of goods.
The procedure which was in place previously for furnishing Bank
Realisation Certification was manual. A merchant had to send BRC in
physical application to the concerned Regional Authority of DGFT; the export
transaction details as per BRC entered manually. This was undoubtedly a
prolonged process that made claiming export incentives a challenging procedure.
DGFT introduced the eBRC module, an integrated platform
that enables the digital transmission of Foreign Exchange Realisation Details
from Banks directly to DGFT's server to promote paperless trade. This process
is more secured by utilizing an electronic certificate.
Currently, with eBRC, an exporter doesn't need to go to
his bank for Bank Realisation Certification, which has made the process of
declaring export benefits and incentives from DGFT and other export companies
easier. At present, there are 132 financial institutions for which DGFT is
providing this facility.
How eBRC works?
Banks produce Bank Realisation Certification upon
invoice of export proceeds. Then the Financial institution's Personnel can
create an XML file with the information of BRCs or eBRCs, digitally authorize
the file, and upload it on DGFT's web server daily or two times a day
pre-determined regularity.
It requires to be kept in mind that Banks submit rupees
equivalent of the realized forex based upon the exchange rate, which is
specified by the Central Board of Import Tax and Customs (CBEC).
Once the XML data are uploaded, and the webserver has
provided recognition for the same to the Bank, DGFT's module allows exporters
to watch their eBRCs on DGFT's internet site.
How can an Exporter see the status of eBRC online?
There are some of the simple steps which an exporter
needs to comply with to see the status of his eBRC Online:-.
·
Go to DGFT's website and click under
Services-eBRC, select "View, and print your eBRC."
·
The exporter will then be taken to a web page
named "e-BRC Details for Trade."
·
Below, the exporter needs to complete his IEC
Code and also IFSC Code of the Bank i.e IFSC Code should be of the bank where
the payment from his overseas buyer will be realized.
·
Next, he needs to click "Program
Details".
·
All e-BRCs uploaded by the bank will certainly
be shown.
·
An exporter can click "Print" on
specific eBRCs.
What is the advantage of eBRC for an Exporter?
With the help of eBRC currently, there is minimal human
handling and much less transaction price for granting export benefits to
traders. DGFT is now getting information for shipping bills electronically
through EDI ports; currently, with this adaptation with banks, it receives the
foreign money realization details, too linked to every shipping bill. The
details based on the shipping bill (FOB Worth of products exported) and eBRC
(Final payment obtained against export) are matched to ensure that the worth at
which incentive is to be supplied to the exporter can be validated.
In the case of EDI Delivery Costs, while applying for
incentive online, a trader needs to connect the relevant shipping bill and
eBRC. No hard copies are required to be submitted to DGFT for the same.
Some essential factors about eBRC & filing of
incentives for an exporter:
·
For the calculation of incentives, the value of export
taken into consideration is realised value based on eBRC or FOB value as per
Shipping Bill, whichever is much less.
·
When applying under any scheme, an exporter must
enter the Payment details, Insurance policy, product information, and shipping details.
·
The exporter must examine the realised value
reported by bank on eBRC; if there is a mistake, they need to get it changed by
the bank.
·
Suppose several products are in a shipping bill.
In that case, the FOB value or realised value (whichever is much less) is
proportionately dispersed among all the items based on a multiplication factor.
·
This multiplication factor is the ratio between
realised value and FOB value as per the shipping bill.
Multiplication Variable (M) = FOB Value realised in Rs. as per
eBRC / FOB Value as per Shipping Bill
·
Bank's commission must not be deducted from the
realised value reported in eBRC.
How eBrc Use?
Information about transaction-level exports obtained by
eBRCs is also shared with other government agencies. DGFT has signed MOUs with
14 state governments and two central government agencies for sharing this
information. To strengthen the procedure of GST on Exports, DGFT has likewise
authorized an MOU with GST Network (GSTN) for sharing foreign exchange
realisation and Import Export Code information. This will undoubtedly make it
easier to refine export associated deals under GST.
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Created on Sep 14th 2020 07:31. Viewed 479 times.