DGFT revamped the e-BRC system to enable self-certification by exporters
NEW DELHI : The DGFT has revamped the e-BRC system to enable self-certification by exporters, eliminating the need for bank requests and paperwork. This cost-free, paperless process facilitated via DGFT’s portal enhances efficiency, reduces burdens on banks and exporters, and aids in targeted policymaking through real-time data on exports.
Here are key features:
Electronic Bank Realisation Certificate(eBRC)
About eBRC
- “eBRC” stands for “electronic Bank Realisation Certificate”.
- eBRC serves as proof of realization against exports done
- Issued on DGFT platform by concerned banks at the request of exporter
Uses of eBRC:
- To avail incentives under Foreign Trade Policy of DGFT
- Advance Authorisation scheme
- Export Promotion Capital Goods Scheme (EPCG)
- MEIS / SEIS / TMA (legacy schemes)
- GST compliances (Rule 89(2) of the CGST Rules)
- Refund of unutilized input tax credit (ITC) on account of exports without payment of tax.
- Refund of tax paid on export of services with payment of tax
- Refund of unutilized ITC on account of supplies made to SEZ Unit/SEZ Developer without payment of tax
- Refund of tax paid on supplies made to SEZ Unit/SEZ Developer with payment of tax
- Refund to supplier of tax paid on deemed export supplies
- Refund to recipient of tax paid on deemed export supplies
Current process to obtain eBRC – Merchandise exports
- Exporter completes export procedures and prepares due documents such as Shippin Bills / Bills of Export
- Remittance is received in Exporter’s bank account from the buyer
- Exporter submit the documents to the banks with a request for eBRC generation.
- After verification banks upload the eBRC to the DGFT system.
- Thereafter, Exporter can download the eBRC from the DGFT Website and use the same.
Current process to obtain eBRC – Services exports
- As per request of Exporter bank issue eFIRC to the Exporter.
- After collecting Softex certificate, eFIRC, shipping bill No. and other relevant documents, Exporter submit the documents to the banks for eBRC.
- After verification banks upload the eBRC to the DGFT system.
- Thereafter, Exporter can download the eBRC from the DGFT Website and utilise it.
Issues in current eBRC process flow
Issues for banks
- Substantial burden at banks with increasing exports
- Banks have to update eBRC/ EDPMS for each transaction
- Banks need to verify multiple documents for offsetting the IRMs
- Cumbersome process if cancellation and change in eBRC is required
Issues for exporters
- Substantial transaction since request for each eBRC needs to be submitted to banks
- Multitude of paper documents to be submitted
- Copies of all Shipping Bills and invoices (select banks) to be submitted for merchandise exports
- Each SOFTEX reconciliation requires 24 paper sheets for services export
- Each Courier export transaction requires at least 3 documents.
- More documentary submission for clarifications and need for follow up to ensure final issuance
- Result is delay in getting export benefits, GST refunds filings etc
Issues in current eBRC process flow – Services exports
eBRC system is not being used meaningfully to generate granular Service export data
- eBRC is being used for claiming GST Refunds for Software and other service exports.
- However, no Service classification is being captured under eBRC system.
- The refund applicant may choose to generate a FIRA instead of an eBRC. All such data is also not being captured.
- Various legacy and current classifications are being followed by various agencies, owning to which standardisation and analysis is not feasible without detailed concordance of the data sets
| System | Nomenclature |
| SOFTEX | Based on RBI purpose codes |
| Foreign Inward Remittance Advice (FIRA) | RBI purpose codes |
| FETERS | Based on FETERS purpose codes |
| GSTN | Based on updated Servicing Accounting Code (SAC) Codes |
| eBRC | SAC codes are an optional field for service exports |
Major Changes in the revamped eBRC system
- Based on trust in Indian exporters
- eBRC shall henceforth be generated by exporters themselves via self certification
- Cost free process on DGFT portal
- Need for application and request to banks for generation done away with
- Paperless process without the need for any paper submission to any authority at the time of generation
- A Risk Management based post audit mechanism for banks and other stakeholders to verify bonafides
- Each bank will decide own cut off date to move to self certification based eBRC generation
- IRMs received after cutoff date will be available to exporter for self certification based eBRC generation
- Bank cutoff date available on DGFT website
- Self certified eBRC generation will be based on system based checks as per Business rules
- Business rules available on DGFT website
- Trade Notice 33/2023-24 dated November 10, 2023 maybe referred for more details
Revamped process flow for eBRC generation
- DGFT already captures Exporter’s Bank account details and PAN under IEC issued
- All Inward Remittance Message(IRM) mapped with PAN to be pushed by the banks to DGFT using a API integration
- The given inward remittance details shall automatically appear in account of respective IEC holder
- Exporter may tag the inward remittance with the shipping bill/invoice to generate eBRCs directly.
- eBRCs so generated will flow to banks for post audit risk management as per banks’ own process
- eBRC also planned to be digitally shared with other agencies in future
Major Benefits of the revamped eBRC system
- Reduction in compliance costs for exporters
- Cost free generation – Cost burden reported especially by MSME exporters alleviated
- Paperless generation
- Opens new avenues for small exporters
- Especially useful for e-commerce exports with low cost, high volume of transactions to claim benefits and refunds
- Workload reduction for banks
- Scaling of system made possible in light of GoI’s target of 1 Trillion exports each for Merchandise and Services by 2030
- Banks will focus on targeted risks only instead of checking all transaction documents
- Aid targeted policy making
- Near real-time granular data on service exports at SAC code level will now be available
- This data would allow for further automation at DGFT and other agencies and frame more targeted schemes and strategies for service exports.