Understanding e-BRC: What is it, Importance & How to Check Status

Introduction 

India’s exports have always traced quite the marvelous figure. In FY23-24, it peaked at USD 437.06 billion.

Now, that’s a lot of money and literal boatloads of goods! You need something as proof that you have received payment for exported goods, right? That’s what the Electronic Bank Realization Certificate (e-BRC) basically does. 

But it’s not just a simple proof-providing document. It’s an essential piece of compliance, without which you won’t even be able to claim government benefits and export incentives. In addition, the issue of non-compliance and your e-BRC suddenly become essential documents that you can’t do without.

But don’t worry—it’s not rocket science. Let’s dive into the ABCs of e-BRC (that’s a lot of alphabets) and understand how it works, how you can get it, and how you can use it to your benefit.

What is e-BRC?

An e-BRC, or Electronic Bank Realization Certificate, is a crucial digital document used to validate the realization of export proceeds in India. In other words, it acts as proof that the exporter has received money for exported goods from the buyer.

Exporters need to declare the value of the goods they're shipping out. After receiving all payments for a shipping bill, they can ask their bank to close the entry in the Export Data Processing and Monitoring System (EDPMS) and get an e-BRC. To claim benefits under the Foreign Trade Policy, businesses must provide a valid BRC to prove they've received payment for their exports.

The e-BRC system was introduced by the Directorate General of Foreign Trade (DGFT) on 15th of November, 2023 under the Ministry of Commerce and Industry to replace the manual Bank Realization Certificate (BRC). It is part of the government's initiative to digitize and streamline export processes.

Why e-BRC is Essential for Exporters?

You are essentially getting foreign funds when you get paid for an export. And without the e-BRC, you’ll have no way to prove how you acquired these funds. The main reason, then, why you need an e-BRC is because it acts as a receipt for received foreign goods.

Even with a little bit of financial know-how, you can surely guess the troubles that might ensue due to this.
It also helps with:

• Regulatory Compliance: The e-BRC ensures adherence to the regulations set by the Directorate General of Foreign Trade (DGFT) in India. It serves as documented proof that you have received payment for goods or services that you exported. This allows you to maintain your business's legal standing and avoid potential legal issues.

• Access to Government Incentives: Having an e-BRC means you can claim various government-offered incentives, such as duty drawbacks, tax exemptions, and subsidies. Without an e-BRC, you’ll miss out on these amazing financial advantages.

• Accurate Financial Reporting: e-BRCs help you maintain your financial records accurately by providing data on all your foreign exchange earnings. And if you want to claim GST refunds, this proof is pretty mandatory.

How Does e-BRC Work? 

The process for issuing an e-BRC in India is straightforward and completely digital. Here are the steps you need to follow:

1. Payment Receipt and e-BRC Creation: After you receive a payment for exported goods or services, your bank generates a digital e-BRC.

2. XML File Preparation and Signing: Your bank prepares an XML file with e-BRC details, which is digitally signed using a DGFT-registered signer.

3. File Upload and Verification: This XML file is uploaded to the DGFT's server for verification. This upload happens once or twice a day. For currency conversions, the bank automatically uploads the payment info in INR, using the exchange rate provided by the Central Board of Excise and Customs (CBEC). Once verified, the DGFT sends a confirmation to the bank.

4. Access and Print: You can then log into the DGFT website to check the status of your e-BRC and print the document whenever you need it, easy peasy!

How to Check and Download your e-BRC: A Step-by-Step Guide

For checking and e-BRC download, follow the below steps:  

Step 1: Enter your credentials and log In to the DGFT Portal. The details you’ll need here are simply your registered e-mail ID and password. Finally, enter the captcha code and you can log in.

Step 2: Access the e-BRC Section by clicking on ‘My Dashboard’ and select ‘Repositories’ to proceed.

Step 3: Click on the ‘Explore’ button located under the ‘Bills Repositories’ tab.

Step 4: Choose ‘Bank Realisations (e-BRC)’ from the ‘Select Bill’ dropdown menu.

Step 5: Enter the details to specify the period for which you want to check the e-BRCs and specific BRCs and click on ‘Search’. 

Step 6: Click on the specific Bank Realisation Number to view more details.

Step 7: Download the e-BRC by clicking on the ‘Print eBRC’ option, which will allow you to save or print a copy for your records. 

Fixing Errors in your e-BRC

Noticed an error in your e-BRC? Don’t worry—it happens. Fixing it is a simple, straightforward process. 

Here’s what you need to do: 

• Spot the Error, Take Action: If you find inaccuracies while checking your e-BRC status, don’t let it slide. Since e-BRCs that the bank generates and submits to DGFT can’t be edited directly, prompt action is key.

• Reach Out to your Bank: Contact your bank and explain the issue clearly. Make sure to provide any supporting documents they might need to process the correction.

• Cancellation: If your e-BRC hasn’t been used or utilized, the bank can cancel it by uploading the certificate to the DGFT. This clears the way for a replacement.

• A Brand-New e-BRC: Once DGFT updates the cancellation, your bank issues a fresh e-BRC and uploads it to DGFT. This fresh certificate comes with a new number and all the corrected details.

• Download: After the corrected e-BRC is uploaded, log in to the DGFT website, download the updated certificate, and you’re good to go.

Troubleshooting Common e-BRC Issues

Troubleshooting common issues with the e-BRCs is crucial for exporters to ensure smooth operations and compliance with export regulations. Here are some steps and tips for addressing common e-BRC problems:

Issue 1: Delay in e-BRC Issuance

• Contact your bank's foreign exchange or trade finance department frequently to monitor the status of e-BRC issuance.

• Ensure all export transaction details provided to the bank are accurate and complete to avoid processing delays.

Issue 2: Incorrect Information on e-BRC

• If you notice discrepancies, inform your bank immediately. Provide the correct details and request a revised e-BRC.

• Conduct regular audits of your e-BRCs to catch errors early and address them promptly.

Issue 3: Lost or Unavailable e-BRC Records

• Keep digital copies of all e-BRCs secure and organized. 

• If you lose access to an e-BRC, your bank can reissue or regenerate the necessary documents upon request.

Understand e-BRC and Other Export Documents with Bluno

If you are an exporter, you need to keep your e-BRCs close at hand. That’s non-negotiable. It serves both as proof of the transaction and as a means to attain export incentives and GST refunds. 

And with how easy the government has now made the digitized process of obtaining your e-BRC, there’s no reason for you not to get it. You don’t have to tackle the hassles you had to when getting a manual BRC. 

For more export-related info and ways to garner incentives, follow Bluno. Not only will you get a lot of industry know-how but also simplify your overall export compliance. Try Bluno today. 

Frequently Asked Questions

What is an e-BRC?

An e-BRC or Electronic Bank Realization Certificate is a digital document issued by banks to Indian exporters, certifying that the exporter has received payment for goods or services exported overseas.

How to download an e-BRC certificate online?

To download an e-BRC, log into the DGFT website, navigate to the e-BRC section under 'Services,' enter the required details such as IEC and date range, and download the e-BRC from the list provided.

What is the use of BRC in export?

A Bank Realization Certificate (BRC) proves that an exporter has received payment from abroad, facilitating the claim of government incentives and ensuring compliance with export regulations.

How can I check my e-BRC status online?

Visit the DGFT portal, access the e-BRC section, and enter relevant details like IEC and bank details to view the status of your e-BRCs.

What is the e-BRC full form?

The e-BRC full form is Electronic Bank Realization Certificate.

What are the benefits of e-BRC?

Benefits of eBRC include easier compliance verification and faster processing of export incentives.

What happens if BRC is not received?

If a BRC is not received, exporters may face delays or be unable to claim export incentives, as well as potential tax and export compliance issues.

How to apply for e-BRC?

Exporters need to request their bank to issue an e-BRC after the realization of export proceeds, which the bank will then upload to the DGFT portal.

Can BRC be applied retrospectively?

Yes, a BRC can be applied retrospectively as long as the exporter provides the required documents and transaction details for the period in question, typically 12 months from the date of export. 

Can e-BRC be amended?

Typically, once a BRC is issued, it can be amended if authorized by the relevant bank.

Can an exporter apply for BRC or e-BRC through any bank?

An exporter can apply for a BRC or eBRC through any bank whose AD code is mentioned in their shipping bill. The bank must be registered with the Directorate General of Foreign Trade (DGFT) to upload these certificates on its portal. 

Is there a fee associated with obtaining eBRC?

Generally, you can get a copy of the e-BRC online, which means it does not come at a cost, but this may vary if an agent/bank is involved. However, if you get the eBRC from your bank via the DGFT, your bank may charge a particular amount during SB closure. This varies from bank to bank.