Comprehensive Guide to Self-Certification of e-BRC on DGFT e-platform

You will receive foreign payments if you engage in international trade. But you can’t just go around with all that money without letting the authorities know how you got it, right? 

That’s where the e-BRC comes into play. It acts as proof of you receiving the funds in India after you exported some goods or services. 

Before the DGFT (Directorate General of Foreign Trade) introduced e-BRC, the bank always used to issue it for you. 

But now, as the country is focusing more on digitization, a new self-certification process has propped up. This e-BRC system replaced the manual Bank Realization Certificate (BRC). 

And that is what you should go for because it’s more convenient and has a ton of benefits. Let’s explore.

Understanding e-BRC

An e-BRC (Electronic Bank Realization Certificate) is a key digital document confirming the receipt of India's export payments.

When you receive payment for an export, you're essentially bringing in foreign funds. Without an e-BRC, you cannot validate how you acquired these funds, which could lead to complications.

In a nutshell, the e-BRC is a tool that serves multiple purposes, including:

• Keeping you compliant: The e-BRC acts as proof of payment for exported goods or services, ensuring you meet the regulations set by the Directorate General of Foreign Trade (DGFT). It helps your business remain legally compliant and prevents potential legal issues.

• Making you eligible for government incentives: An e-BRC is necessary to claim government benefits like duty drawbacks, RoDTEP, RoSCTL, and others. Without it, you risk missing out on these valuable financial perks.

• Keeping your finances in order: e-BRCs provide a clear record of your foreign exchange earnings, making it easier to maintain accurate financial reports. Additionally, it’s a crucial document for claiming GST refunds.

Benefits of the self-certification process

The self-certification process has some really cool benefits. Let’s go over them:

• You can now generate e-BRCs by submitting only the metadata of your shipping bills, Softex, or invoices—no more hard copies.

• Forget about paying e-BRC charges or visiting the bank in person.

• The digital system allows seamless exchange with regulatory bodies like RBI, CBDT, GSTN, STPI, and SEZs, eliminating the need to submit paper documents.

• Unburdens banks from routine issuance of eBRCs.

Prerequisites

There are some things that you need beforehand to get your e-BRC.

Let’s take a look at them one by one:

Details required

This is a bit more complex since you need a lot of things here. We will go over specific requirements for goods and services in detail in our step-by-step guide. But in general, these are the things you need to keep handy:

• Inward Remittance Messages (IRM) issued by the bank

• Shipping bills or invoices

• AD (Authorized Dealer) Code linked to your bank account

• Details like invoice numbers, dates, and remittance details

Self-Certification Process

Now, let’s get into the meat and potatoes of the process itself. Here’s how it’s done:

Step 1: Registration and login

If you’re not already registered, head to the DGFT portal and sign up as an Importer/Exporter. If you need help registering, refer to our blog here. 

Step 2: Link your IEC

Got an Importer Exporter Code (IEC)? Link it to your profile on the portal. If you don’t have one yet, no problem—apply for a new IEC right there on the portal. Once again, if you need a detailed guide, you can refer to this blog.

Step 3: The e-BRC page

It’s time to head over to the e-BRC section. Log in and navigate to Services > eBRC.

You will be taken to the e-BRC landing page and ready to roll. 

Click the Generate e-BRC button to open the e-BRC form's common draft list screen.

Here, you can either click Start Fresh Application to generate a new eBRC or Proceed With Existing Application to check the status of the e-BRC that you already self-applied for.

Step 4: Selecting your BRC type

Once you select a transaction, you will be taken to this page. 

Now comes the fun part—choosing what kind of e-BRC you’re generating. Are you exporting goods (physical or deemed)? Or is it services (IT or non-IT)? Select your type, and let’s move on.

Step 5: Enter your IRM details

Input the IRM (Inward Remittance Message) number and Amount for eBRC into the form. 

The portal will do some magic here—it’ll auto-fill details like your bank name, purpose code, remittance currency, and amount. 

Want to club multiple IRMs? Sure, but only if they’re from the same bank, account number, and currency. Some specific rules apply:

• You can add multiple IRMs to streamline your processes.

• IRMs of the same currency can only be clubbed.

• You won’t be able to generate eBRCs for P0101 and P0108, as these purpose codes are restricted.

• When generating an eBRC for purpose code P0103, make sure the shipping bill or invoice date is on or after the remittance date. Remember, eBRC generation isn’t allowed before the shipping bill or invoice date, even for advance payments.

• P0103 works perfectly as a standalone purpose code to generate eBRCs.

• If you're dealing with Services > IT, you can club P0103 with P0807 for your eBRC generation.

• You can also club P0103 with any of the 01 Product Groups, except for P0101 and P0108.

• P0103 can be clubbed with P1505 to generate eBRCs as well.

• Keep in mind that two purpose codes can't be clubbed for a single eBRC, except for P0103 (Advance Payment), which gives you the flexibility to combine it with other purpose codes for inward remittance.

• If you’re in the IT services space, only P0802, P0803, P0807, and P0103 are applicable for generating eBRCs.

• You can use one shipping bill to generate two or more eBRCs from different banks, giving you more options.

• IRMs can only be clubbed if they belong to the same bank name and bank account number, so double-check your details.

• For service exports, you’ll only be able to view and attach invoices that have SAC codes matching the description of the respective services.

Step 6: Total amount calculation

After you are done adding IRMs to the table, the portal will calculate the total amount for you and display it. 

Here, you have to click the Save and Next button.

Step 7: Inputting details

In this step, the window that opens up will depend on the type of e-BRC you selected. Here’s the detailed classification and the things you need to add for each field. You need to only enter the details in the fields that are not populated.

For Goods

Mandatory fields

• AD Code
• Shipping Bill Number
• Shipping Bill Date
• Shipping Bill Currency Code
• Shipping Value in Currency Code
• Invoice Number
• Port Code of the Export

Non-mandatory fields

• IEC
• Name of the Exporter
• IFSC Code of the Account in which Amount is Realized
• Account Number in which Amount is Realized
• Date on which Amount is Realized
• FOB Value Realized in the Foreign Currency
• Commission Value
• Foreign Currency Code for the Commission Value
• Discount Value
• Foreign Currency Code of the Discount
• Insurance Value
• Insurance Foreign Currency Code
• Other Deduction Value
• Other Deduction Foreign Currency Code
• Freight
• Freight Foreign Currency Code
• Currency Code for the Realized Amount
• Net Realized Value (FC)

For Services (IT and Non-IT)

Mandatory fields

• AD Code
• Invoice Number
• Invoice Date
• Port Code of the Export
• Invoice Currency Code
• Invoice Value in Currency Code

Non-mandatory fields

• IEC
• Name of the Exporter
• IFSC Code of the Account in which Amount is Realized
• Account Number in which Amount is Realized
• Date on which Amount is Realized
• Invoice Date
• Port Code of the Export
• Invoice Currency Code
• Invoice Value in Currency Code
• FOB Value Realized in the Foreign Currency
• Commission Value
• Foreign Currency Code for the Commission Value
• Discount Value
• Foreign Currency Code of the Discount
• Insurance Value
• Insurance Foreign Currency Code
• Other Deduction Value
• Other Deduction Foreign Currency Code
• Freight
• Freight Foreign Currency Code
• Currency Code for the Realized Amount
• SAC Code

Step 8: Save and preview your e-BRC

Double-check everything by clicking “Save & Next.” The preview screen will show all the details before moving forward.

Before submitting, you’ll need to read and accept a declaration. Just tick the checkbox and you are ready to generate your e-BRC.

Step 9: Generate your e-BRC

Hit the Generate e-BRC button, and voilà! Your e-BRC will be created. A confirmation prompt will show the e-BRC number.

The e-BRC will be visible in respected Banks & RA offices in the Repository under Loaded status. A prompt message will appear stating the e-BRC Number.

Step 10: Find your e-BRC in the repository

Locate your e-BRC under My Dashboard > Repository. Use filters like the BRC issue date, shipping bill number, or authorization number to find it.

Step 11: Download your e-BRC 

Need a copy? Click on the print e-BRC button under My Dashboard > Repository >Select

Bill type as e-BRC >Search the e-BRC> Click on the e-BRC number hyperlink. 

Step 12: Update values if needed

You can also update Discount value, Freight value, Commission value, Insurance value, & Other Deduction value when generating fresh e-BRC or if existing e-BRC is not utilized for benefits/incentives under Foreign Trade Policy or otherwise.

Compliance Aspects

The e-BRC is an essential document that helps you remain compliant on multiple fronts. Here are some of these compliances and things you need to look out for:

• Regulatory compliance: Generating the e-BRC helps you stay compliant with all the rules and regulations of the DGFT when it comes to export-related transactions. It keeps your activities legal and prevents you from encumbering any penalties.

• Documentation standards: To generate the e-BRC, you need to keep your records clear and up-to-date—accurate shipping bills, invoices, and purpose codes make a big difference in speeding up the process.

• Verification process: Always cross-check your IRM details with the shipping bills to avoid issues during certification.

• Audit trail: Your digital records will ensure a transparent audit trail, so nothing slips through the cracks.

• Legal implications: Remember, any discrepancies in your documentation can result in legal repercussions, so it’s essential to stay compliant.

Common Challenges

Here are some challenges you might encounter. Be ready to overcome them:

• Technical Issues: You might encounter delays or system errors when trying to connect your IEC to the DGFT platform, but staying on top of technical updates will help avoid disruptions.

• Documentation Problems: Ensure your shipping bills and invoices are free of errors—this will save you time and prevent delays in certification.

Stay Compliant with Bluno

Want to keep all your documents up to date without actually having to read through all this complicated jargon? 

Then get in touch with the real experts at Bluno. We will make sure all your documents are updated, compliant, and legal so you can focus on the more important things like growing your business.