Electronic Bank Realization Certificate (e-BRC)

Electronic Bank Realization Certificate (e-BRC) is an essential digital certificate for those in the export business. A bank issues it as confirmation that the exporter has received payment from the buyer against the export of goods or services. eBRC is an essential source of financial information and economic indicator. The present article briefs the Electronic Bank Realization Certificate (e-BRC).

Importance of Electronic Bank Realization Certificate (e-BRC)

Electronic Bank Realization Certificate (e-BRC) initiative by the Directorate General of Foreign Trade (DGFT) to digitize and systematically record foreign trade transactions.

An eBRC is an electronically facilitated document that proves receipt of payment against an international trade transaction by an exporter.
As mentioned above, eBRC is essential financial information and economic indicator source.
Any firm applying for benefits under Foreign Trade Policy is required to furnish valid BRC as proof of realization of payment against exports made
In simple terms, Electronic Bank Realization Certificate (e-BRC) is proof of export.

Purpose of an eBRC

As mentioned earlier, an exporter needs an eBRC to avail of the various export incentives (duty exemptions, subsidies, low-cost loans, etc.) offered by the government as part of its Foreign Trade Policy (FTP). In India, the FTP and many export incentives it highlights are formulated and implemented by the DGFT. The DGFT also implements the eBRC platform, which allows banks to electronically upload to the DGFT server all foreign exchange realization-related information related to exports. This information is transmitted through a digital certificate, i.e., eBRC.

Furnishing of BRC – Earlier Procedure

The procedure in place earlier for furnishing Bank Realization Certificate was manual. An exporter had to submit BRC in physical form to the concerned Regional Authority of DGFT, and then the export transaction details as per BRC were entered manually. This was a lengthy process which made claiming export incentives a complicated process.

eBRC Module

DGFT introduced the eBRC Module to promote paperless trade, an integrated platform that enables the electronic transmission of Foreign Exchange Realization Information from Banks directly to DGFT’s server. The use of the digital certificate further secures this process. Now with eBRC, an exporter doesn’t need to go to his Bank for a Bank Realization Certificate, which has made the process of claiming export incentives and benefits from DGFT and other export agencies much more accessible.

Migration of e-BRC Portal to New IT platform

DGFT Vide a Trade Notification dated 30^th June 2022 announced that the existing eBRC Module is now being upgraded to a new IT platform. It is proposed to discontinue the earlier version from the end of July 2022. Existing users of the eBRC Module will need to migrate o the new environment urgently so that services to the exporting community do not get impacted.

Working Principle of eBRC

Banks generate Bank Realization Certificates upon receipt of export proceeds.

The Bank’s Staff can generate XML files containing information about BRCs or eBRCs, digitally sign the file and upload it on DGFT’s server daily or twice daily at a pre-determined frequency.
The Bank will upload the rupees equivalent of the realized foreign exchange based on the exchange rate defined by the Central Board of Excise and Customs (CBEC).
Once the XML files are uploaded, and the server has acknowledged the same to the Bank, DGFT’s Module allows exporters to view the status of their eBRCs on DGFT’s website.