For exporters, eBRC (Electronic Bank Realization Certificate) is a key compliance document that serves as proof of payment received from abroad for exported goods or services. It is especially important for goods and software exporters covered under SOFTEX.

In this blog, we’ll break down what eBRC is, why it matters, how to obtain it, and everything else you need to know.

An eBRC (Electronic Bank Realization Certificate) is digital proof that your bank issues once you receive payment for an export. Simply put, it confirms that you’ve been paid for your goods or services.

This certificate is important because it helps you report your earnings, file taxes easily, and even access government benefits meant for exporters including low-cost loans, subsidies, duty exemptions and more.&nbsp;Since eBRC includes all the transaction details, it also makes compliance with authorities like the Income Tax Department smooth and hassle-free.

Before eBRC, getting a <a href="https://www.skydo.com/blog/bank-realisation-certificate-all-you-need-to-know">Bank Realization Certificate (BRC)</a> was a tedious process. Exporters had to visit their bank, apply for a physical BRC, and then submit it to the Directorate General of Foreign Trade (DGFT). The DGFT would manually enter transaction details, making the process slow and complicated—especially for claiming export incentives.

In 2012, the DGFT introduced e`BRC, eliminating the need for physical visits and paperwork. Now, banks issue BRCs digitally, making it faster, easier, and more efficient for exporters to claim benefits and comply with regulations.

In India, banks issue an -BRC to exporters through the following process.

How do you check the eBRC status on the DGFT Website?

Here are the steps to check the status of your eBRC (Electronic Bank Realization Certificate) online.

DGFT has made it mandatory for all exporters to apply for and receive the eBRC to demonstrate that they have received payment for their exported goods or services per DGFT regulations.

The eBRC system provides a digital record of export transactions, making it easier for exporters to maintain and retrieve records for audit and compliance.  Additionally, exporters can avoid visiting the bank and DGFT offices.&nbsp;

One of the main reasons exporters apply for the eBRC is to reap the benefits of various export benefits offered by the Indian government under its Foreign Trade Policy. Submitting an eBRC allows the exporters to be eligible for benefits such as low-cost loans, duty exemptions, subsidies, etc.&nbsp;

Enhancing transparency and accountability

The Indian government and authorities such as the Income Tax Department and the DGFT constantly monitor and manage the country's foreign exchange reserves and tax filing. Issuing e-BRC ensures that the foreign exchange earned through exports is accurately reported and accounted for with effective tax filing.&nbsp;

How to Claim Export Incentives using eBRC

In India, the DGFT decides on the value of the incentives which an exporter can seek under the various export benefits. The value is decided by analysing the Free on Board (FOB) of the exported goods and services mentioned in the shipping bills, and the total received payments per the eBRC.&nbsp;

Here's how you can claim these benefits with eBRC:

However, you must ensure that the bank has submitted an error-free e-BRC and it reflects the consolidated realisation value. Furthermore, you must enter freight values, insurance and commission values in the refund application, as the e-BRC excludes such values.&nbsp;

Here are some key resources and tools that can help you in your endeavour to obtain your e-BRC.

eBRC is a crucial certificate issued by the bank and verified by the DGFT for streamlining the payment procedure for exporters and working as an income proof for better transparency and tax filing.&nbsp;

It is mandatory for an exporter receiving payments for the export of goods and services to apply for eBRC and ensure that the bank uploads it on the DGFT website. Utilising the eBRC, exports can present their eligibility for various export incentives and increase their profit margin.&nbsp;

However, as an exporter, you must maintain accurate records of your export transactions and related documents to facilitate the e-BRC application process. Since the regulations and the procedure may change over time, it's important to stay updated with the latest information from official government sources and industry associations.&nbsp;

You can contact <a href="mailto:support@skydo.com">industry experts at Skydo</a> to help you with the eBRC process and in case you have any other queries related to foreign exchange.&nbsp;

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International trade can be complex, and so can the codes on your bank statements.  Seeing 'P0108' might leave you scratching your head.  This guide clarifies this purpose code, focusing on its connection to merchanting trade and why it's important for your business.

P0108 Purpose Code Explained: The Essence of Merchanting

&nbsp;P0108 purpose code specifically refers to transactions related to goods sold under merchanting or receipts against the export leg of merchanting trade.  Let's break down what "merchanting" means in this context:

Merchanting trade involves a trader buying goods from a seller located in one country and selling them to a buyer in another country without the goods physically entering the trader's country.  Think of it as a triangular trade where the trader facilitates the transaction but the goods move directly from the original seller to the final buyer.

P0108 captures the financial aspect of this trade, specifically the receipt of funds from the buyer after the goods have been sold.

Why is Understanding P0108 Purpose Code&nbsp; Important?

Key Considerations for P0108 Purpose Code:

How Do You Choose the Right Purpose Code for Your Transaction?

Selecting the correct purpose code is essential for ensuring your international trade transactions comply with RBI guidelines. For businesses engaged in merchanting trade, where goods are bought and sold internationally without physically entering India, Purpose Code P0108 should be used when receiving payments from the buyer for the export leg of the transaction.

Before finalizing your transaction, carefully confirm the nature of the trade and ensure that the purpose code accurately reflects the merchanting activity.  Remember, P0108 specifically relates to the receipt of funds from the buyer after the goods have been sold in a merchanting arrangement.  If the transaction involves other aspects of the trade (e.g., the initial purchase of goods), a different purpose code might be applicable.

To avoid delays, misreporting, or potential regulatory issues, ensure you have all the necessary documentation to support the use of Purpose Code P0108.  This typically includes:

If you're uncertain about which purpose code applies to your specific transaction, consult your bank or a financial advisor to confirm the correct code.  Using the wrong code can lead to processing delays, inquiries from regulatory authorities, and potentially even penalties.  Accurate coding ensures smooth and compliant international trade operations.

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Ever noticed a mysterious code like "P1502" on your bank statement and wondered what it signifies? These purpose codes, while seemingly cryptic, are essential for categorizing financial transactions, especially in international trade. Today, we'll unravel the meaning of&nbsp; P1502 Purpose Code, specifically related to non-import transactions.

P1502 Purpose Code Explained: Fixing Mistakes and Refund for Non-Imports

Purpose Code P1502 refers to transactions involving reversals of incorrect entries and refunds of amounts sent for non-import purposes.  Think of it as a correction code.  It comes into play when a payment was mistakenly sent abroad for something other than importing goods, and now needs to be rectified.

Why is Understanding Purpose code P1502 Important?

Understanding purpose codes like P1502 empowers you to manage your finances more effectively, especially when dealing with international transactions.  It helps you stay organized, understand your cash flow, and avoid unnecessary confusion.

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Have you ever glanced at your bank statement in India and spotted the mysterious purpose code "1501"? If you're an importer or deal with international trade, you might have encountered this code associated with a transaction. This purpose code primarily deals with refunds and rebates associated with imports.&nbsp;This blog post will decipher the purpose code 1501 and explain its significance in the world of Indian imports.

Purpose Code 1501 in India specifically denotes transactions related to refunds or rebates received on account of imports. This code signifies that you've received money back from foreign entities associated with goods or services previously imported into India.&nbsp;For example, imagine you run a business in India that imports electronic components from China, assembles them locally, and sells the final product. If one of the components you imported turns out to be faulty and you file a complaint, the supplier may issue a refund for the defective part. This refund would need to be categorized under Purpose Code P1501.

Why is Understanding Purpose Code 1501 Important?

How to Select the Right Purpose Code for Your Transaction?

Choosing the correct purpose code is crucial to ensure smooth and compliant transactions, especially when dealing with international payments. If you're receiving funds from abroad related to imports, such as refunds, rebates, or adjustments, Purpose Code 1501 should be used.

Before finalizing any transaction, carefully review the nature of the payment to confirm it accurately reflects the purpose of the funds. For instance, if the payment is not related to an import-related refund or rebate (e.g., a personal remittance from abroad), a different purpose code would be applicable.

To avoid discrepancies or delays, ensure you have all the necessary documentation to support the use of Purpose Code 1501. This may include:

If you're uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code can lead to delays in processing, scrutiny from regulatory authorities, and even potential penalties.

By carefully selecting the correct purpose code, you can ensure smooth and compliant transactions while maintaining accurate financial records.

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Accurately classifying international transactions is essential for staying compliant with RBI and FEMA regulations. The P1401 purpose code is specifically used when receiving payments from abroad for salaries, wages, bonuses, or other compensation for work. In this guide, we’ll break down the importance of Purpose Code P1401, its role in inward remittances, and how it ensures smooth compliance with RBI guidelines.&nbsp;

Purpose Code P1401 is used when receiving payments from abroad for compensation, such as salaries, wages, bonuses, or other forms of remuneration for work. For example, if you’re a remote employee working for a company in the US and receive salary or bonus payments directly from them, these transactions fall under P1401.

This code ensures that such remittances are accurately reported to the RBI as Compensation of Employees, keeping your transactions compliant with Indian regulations.

Using the correct purpose code, like P1401, not only ensures smooth reporting but also helps you avoid delays or complications during the remittance process. If you’re new to purpose codes, explore our guide to learn more about their role in simplifying cross-border transactions.

&nbsp;Importance of &nbsp;Purpose Code P1401 in Inward Remittance

Purpose code P1401 ensures that payments received from abroad as salaries, bonuses etc by employees are reported correctly under RBI guidelines. Proper classification helps avoid delays in the remittance process and ensures compliance with FEMA regulations. Note that this purpose code applies to employees of an organisation and not independent service providers. For example, if you are a freelance graphic designer providing services to a client in the US and receive payment for the same, it will not be categorised under purpose code P1401.&nbsp;

Using an incorrect purpose code can lead to delay or cancellation of the transaction altogether and it can also lead to serious legal trouble if it's found that the incorrect code was deliberately used to bypass compliance.&nbsp;

Instances Where Purpose Code P1401 Will be Required

Let's understand the applicability of Purpose Code P1401 with a couple if instances.&nbsp; Example 1: Imagine you’re a full-time employee working remotely for a company based in Sweden while living in India. The company pays your salary directly to your Indian bank account without involving any third party. This inward remittance, being your compensation as an employee, is categorized under Purpose Code P1401.

Example 2: Let’s say you’re an employee working in the Gulf region, but your salary is deposited directly into your bank account in India. In this case, the payment is categorized under Purpose Code P1401, as it represents compensation received from abroad by an employee.

Choosing the correct purpose code is crucial to ensure your inward remittance complies with RBI and FEMA guidelines. If you’re receiving payments from abroad as salary, wages, bonuses, or other forms of employee compensation, Purpose Code P1401 should be used.

Before finalizing your transaction, verify the nature of the payment to confirm it matches this purpose code. For example, if the payment is not for compensation but for services rendered or goods sold, a different purpose code may apply. Ensure all relevant documentation, such as employment contracts or proof of payment, is in place to avoid discrepancies or delays.

If you’re uncertain about the appropriate purpose code for your transaction, consult your bank or a financial expert. Using the wrong code could lead to processing delays or attract regulatory scrutiny.

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If you’re an exporter or freelancer earning from abroad, you’ll need an FIRC certificate to stay compliant and claim benefits. But let’s be honest—getting one through traditional banks can be a tedious process, often requiring multiple follow-ups and fees.

The good news? You can now get your FIRC certificate online, quickly and hassle-free. In this blog, we’ll walk you through the easiest way to obtain it without the usual headaches.

FIRC certificate, or its full form <a href="https://www.skydo.com/blog/all-you-need-to-know-about-firc-a-complete-guide" target="_blank">Foreign Inward Remittance Certificate</a>, is an important document issued by banks to exporters as proof of receiving foreign currency payments. Prior to 2016, AD Category I Banks were authorized to issue FIRCs to exporters for every cross-border payment received. FIRC certificate was crucial for exporters to serve as proof of foreign transfers. It was also a crucial document for both goods and service exporters to claim their tax exemption and GST refund.

However, as per RBI guidelines since 2016, banks only issue FIRCs for specific financial transactions like inward remittances from Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). For export collections, banks now provide a<a href="https://www.skydo.com/blog/importance-of-fira-for-freelancers"> Foreign Inward Remittance Advice (FIRA) instead.</a>

Although FIRA is often still referred to as FIRC, the two serve slightly different purposes. The key difference is that FIRCs are now limited to transactions related to foreign investment, meaning FDI and FII transactions, while FIRA is what exporters need for all other international payments.&nbsp; For clarity, we'll use the term FIRC certificate moving forward, but it refers to FIRA throughout.

FIRC Certificate from Bank:&nbsp; How to Get it?&nbsp;

As discussed, to obtain your FIRC certificate from the bank, you'll need to submit a request form with the following details:

These are the standard details required, though some banks may ask for additional information based on the transaction. Once submitted, the bank will process your request, and most banks charge a fee between INR 200-800 for issuing the FIRC certificate.&nbsp;

The entire process typically takes 7-15 days, and you may need to follow up with your bank to expedite it.&nbsp;

FIRC Certificate Download: How to Do it Online?

Today, beyond traditional banks, several online platforms like Skydo, <a href="https://www.skydo.com/blog/transferwise-india-features-benefits-pros-cons">Wise</a>, and <a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees">Payoneer</a> provide exporters with fast and secure options for <a href="https://www.skydo.com/blog/how-to-receive-international-payments-in-india">receiving international payments in India.</a> Some of these platforms also offer FIRC Certificates to streamline compliance for exporters.

While some platforms may refer to these digital FIRAs as <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences" target="_blank">eFIRC,</a> electronic FIRC digital FIRC, or simply FIRC, it's important to understand that they are essentially digital FIRAs, regardless of the name. Now, let’s explore how you can receive your digital FIRA from these platforms:

How to get your PayPal FIRC Certificate ?

Since 2021, <a href="https://www.skydo.com/blog/paypal-in-india-charges-review-alternatives" target="_blank">PayPal</a> has started issuing digital FIRA to businesses receiving international payments in India as proof of payment receipt. The platform doesn’t issue individual FIRA for every transaction, instead, it issues <a href="https://www.paypal.com/in/brc/article/paypal-monthly-digital-firc?no_follow=true">monthly digital FIRA</a>, and all international transactions of the previous month are referenced in that one FIRC certificate. You can access this FIRC certificate by the 15th of the subsequent month. For example, your monthly FIRC certificate for July will be available to you by 15th of August.

Once the FIRC certificate is available, PayPal will notify you of the same via email. Here’s how you can download it:

Note that PayPal doesn't charge any additional fee for issuing FIRC certificate.&nbsp;

How to get your FIRC Certificate from Payoneer?

<a href="https://www.skydo.com/blog/payoneer-payment-gateway-features-fees" target="_blank">Payoneer</a> is another widely used platform for Indian businesses to receive international payments. To simplify compliance, Payoneer provides users with free digital FIRC Certificates for all their international transfers.

Here’s how you can download your FIRC Certificate from Payoneer&nbsp;

<a href="https://www.skydo.com/blog/top_5_wise_alternatives_for_international_payment" target="_blank">Wise</a> is a leading platform for businesses and individuals to receive foreign payments, supporting both B2B and P2P transfers. For business payments in India, Wise provides a digital FIRA via email for each transaction.

However, Wise charges an additional fee for issuing the digital FIRC certificate, which varies depending on the currency. For instance, if you receive a payment in GBP, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">1.91 GBP,</a> while for USD transactions, the fee is <a href="https://wise.com/in/pricing/business/receive?sourceAmount=1000&amp;sourceCcy=GBP&amp;targetCcy=INR?no_follow=true">2.50 USD</a>.&nbsp;

Get Your Free FIRC Certificate from Skydo instantly&nbsp;

At Skydo, our goal is to simplify the international payments process, allowing you to focus on growing your business. That’s why we provide digital FIRC Certificates for every transaction, completely free of charge.

When transacting through Skydo, it automatically generates FIRC certificate for all international payments when they reach your bank account. You will also be notified of the same via email. The document details will be according to the information mentioned in the invoices and payment receipt details. You can easily go to the Skydo dashboard and download FIRA receipts for all or specific transactions, at no extra cost! 

Here’s how you can download your FIRC Certificate from Skydo:

With Skydo, enjoy hassle free and compliant international payments, delivered promptly and without any hidden fees. Switch to Skydo and experience the difference.

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Working with international clients but getting lost in the maze of banking codes?&nbsp;

If you've ever been asked for your ABA number while setting up payment details, you're not alone. ABA stands for American Bankers Association, and these numbers are essential for receiving bill payments into your U.S. bank account or other financial institution. Think of it as your bank's unique address in the American banking system.

In this guide, we'll break down everything you need to know about ABA numbers – from what they are and where to find them to how they work in getting your hard-earned money safely into your account. 

An ABA or routing number is your bank's identification code in the United States. Every U.S. bank has at least one of these nine-digit numbers, which you've probably spotted at the bottom of your checks.

It is like a postal digit code for your bank – it helps other banks know exactly where to send money when someone's making a payment to your account number. You'll often see it referred to as a routing number, though some people still call it a check routing number since it's printed on paper checks.

Your bank might have several different ABA numbers, which can initially seem confusing. Here's why: Large banks often have multiple ABA numbers because they operate across different regions and handle various electronic transactions. Think of it like having different phone extensions for different departments in a company.

This is why it's important to always check with your bank about which ABA number to use for your specific transaction. Using the wrong one could delay your payment or cause rejection, especially for wire transfers.

This clarity around which number to use becomes especially important when setting up payment details with clients or employers, so it's worth double-checking with your bank about which number to use for different types of transactions.

Let's break down what those nine digits in your ABA number mean. While it might look like a random string of numbers, each digit serves a specific purpose in ensuring your money gets to the right place.

To make things easier, we will explain with an example.&nbsp;

When you look at ABA number 026009593, it's like a detailed address for your bank:

Let's look at another ABA number: 121000358

This organized structure helps route your money accurately through the U.S. banking system, ensuring it reaches the correct bank in the San Francisco region. Understanding these patterns can help verify whether you use the correct ABA number for your transactions.

Understanding this structure can be helpful when verifying your banking details with clients – you can quickly check if the number they're using matches your bank's region and follows this pattern.

Is the ABA code the same as the SWIFT Code?&nbsp;

If you're handling domestic and international transactions, you'll come across two types of bank codes: ABA numbers and SWIFT codes. While they might seem similar initially, they serve different purposes in getting your money where it needs to go.

ABA number is like your bank's domestic address – it's only used for transactions within the United States. It's a straightforward 9-digit number that tells other U.S. banks exactly where to send your money. You'll use this when setting up direct deposits or receiving electronic payments from U.S. clients.

<a href="https://www.skydo.com/swift-code-finder">SWIFT codes</a>, on the other hand, are your bank's international address. When clients from overseas want to send you money, they'll need your bank's <a href="https://www.skydo.com/blog/swift-money-transfer-ultimate-guide">SWIFT code</a>. These codes look slightly different – they use letters and numbers (like CHASUS33) and help banks worldwide identify each other for international transfers.

It's worth understanding both codes, especially when receiving international payments. As an Indian business or freelancer receiving payments from U.S. clients, you must share your bank's SWIFT code, not the ABA number. You're receiving an international wire transfer, and SWIFT codes are used for cross-border payments.

Remember: ABA numbers are only used for electronic transfers within the U.S. banking system. When receiving payments from U.S. clients using your Indian bank account number, always provide your bank's SWIFT code to ensure your payment arrives safely and efficiently .

📚Note: Using the wrong code might delay your payment or cause rejection, so always clarify with your client whether they're sending money domestically (ABA) or internationally (SWIFT).&nbsp;

What is the ABA Routing Number Policy of India?&nbsp;

As an Indian freelancer or business owner, you'll mainly work with two banking codes: IFSC codes for transfers within India, and SWIFT codes for receiving payments from U.S. clients. You won't need to worry about ABA numbers since they're only used for transfers within the U.S. banking system.

Like the U.S. banking system uses ABA numbers to route payments, Indian banks use IFSC codes. Think of it as India's equivalent of the ABA system – different code, same purpose.&nbsp;

When receiving money from India, you must work with IFSC codes instead of ABA numbers.

This is a good reminder that different countries have their unique banking codes and systems:

So, if you're doing business internationally, you'll want to familiarize yourself with the banking codes used in your clients' countries to ensure smooth payment processing.&nbsp;

Receive Payments From the US Easily with Skydo&nbsp;

For Indian businesses <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">receiving U.S. payments,</a> SWIFT codes are more relevant than ABA numbers. While traditional banks have complex processes for international transfers, modern payment platforms are simplifying these transactions.&nbsp;

Skydo, for instance, offers a streamlined approach for freelancers and small businesses, with features like zero FX margin and instant FIRA, making international payments more cost-effective and efficient.

<a href="https://www.skydo.com/">Explore Skydo</a>

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An export invoice holds a lot of importance for an exporter. It helps them to get paid, get clearance from the customs authorities during the inspection process, and stay compliant with global trade regulations.&nbsp;

In this blog, we have done a detailed breakdown of the above capabilities and covered types of export invoices to give you a comprehensive understanding.&nbsp;

An <a href="https://www.skydo.com/blog/should-i-invoice-in-inr-or-foreign-currency">export invoice</a> is a legal document containing descriptive details about the goods sold or the services provided. It is also considered a contract between the exporter and the foreign buyer and doubles as proof of sale. Customs and government authorities also check the export invoice to calculate the customs duties and taxes and give the final clearance for sale. In the case of unprecedented events like goods damaged due to natural disasters, you can use the export invoice for insurance claims.

It's also important to understand that an export invoice is different from a normal GST tax invoice. While both GST regular tax invoices and export invoices record sales transactions, the latter is meant only for international transactions. It contains additional details like the <a href="https://www.skydo.com/blog/iec-code-full-form-importance-fees">Import Export Code (IEC)</a> and other applicable foreign currency information.&nbsp;

What is the Importance of Export Invoices in India?

An export invoice plays many roles in India as follows:

Legal proof of export transactions: An export invoice is a legal document verifying a sale between an Indian exporter and a foreign buyer. It also serves as a legal proof in the case of any dispute

Customs clearance: As the export invoice includes details like quantity, rate, size, and volume, customs authorities use it to calculate taxes before handling the final clearance. Without an export invoice, it’s challenging for them to calculate tax, thereby stopping your products from export

Facilitation of payments: The payment terms and conditions are mentioned in an export invoice. So when the export invoice is made both parties adhere to those terms for a streamlined payment experience

Claiming export benefits: An Indian exporter can use the export invoice to claim rebates, tax credits, and incentives from the government. For example, The <a href="https://www.indiantradeportal.in/vs.jsp?lang=0&amp;id=0,55,23222">Remission of Duties and Taxes on Exported Products (RoDTEP) scheme</a> provides a rebate to exporters on central, state, and local taxes

Compliance with international trade laws: By sharing an export invoice, an exporter complies with international trade laws like the World Trade Organization (WTO) agreements. Due to this they enjoy a good reputation and avoid facing legal issues.&nbsp;

What are the Different Types of Export Invoices?

Wondering which type of export invoice is relevant to your business? Following is the list of the most important export invoices for Indian exporters:

This is a primary document for any export transaction. There is no specific format for the commercial invoice, but it must contain details like product description, quantity, price, seller information, shipping details, and payment terms.&nbsp;

The exporter shares a proforma invoice with the buyer as a price quotation before the actual shipment happens. It outlines the estimated costs, transaction details, and other sales terms to build transparency between the parties.&nbsp;

The customs authority of the importing country asks for a customs invoice. A customs invoice is similar to a commercial invoice but has extra details like the origin of goods, classification codes, freight, and insurance. The importer has to fill in the details in the specified format shared by the customs officials.

A tax invoice summarizes the tax applied at the time of sale. It is useful for an Indian exporter to claim GST refunds or export incentives under RoDTEP.&nbsp;

This invoice accompanies the shipment and gives a detailed breakdown of the shipment contents, item descriptions, packaging, and product dimensions. With the help of this invoice, both the importer and exporter can verify the items in the shipment.&nbsp;

Freight invoices are issued by freight forwarders or logistics providers like Keuhne + Nagel, DHL or Nippon Express to describe the freight and transportation charges incurred. It might also include additional expenses like packing costs incurred at the time of transportation. Such an invoice is useful to an exporter for accounting the logistics expenses effectively.

As per Indian Law, the timing of raising an export invoice depends on whether the shipment is for goods or services:

In the case of goods, an export invoice is raised on or before the removal of goods for export. This applies to three forms of transport: air, sea and land.

In the case of services, an export invoice can be raised before or after rendering the service. If it’s the latter, then it must be done within 30 days. The invoice timeline may vary in the case of continuous supply depending on the agreement.&nbsp;

What are the Contents of an Export Invoice?

Here is a comprehensive list of the contents of an export invoice:

This includes the name, address, phone number, and email address of the exporter. In certain cases, it might also include the GSTIN and the Import Export Code (IEC)

This includes the necessary information about the invoice like the unique invoice number and the date when the invoice was issued

Similar to the exporter’s details, the export invoice includes crucial information about the buyer like their name, address, contact details, and importer's country.&nbsp;

An export invoice includes a detailed description of the goods or services rendered. This includes quantity, unit price, total value, weight of goods, and the Harmonized System of Nomenclature (HSN) or Service Accounting Code (SAC) of the goods or services.

The value details specifically highlight the currency of the transaction (e.g. USD or Euro), Free on Board (FOB) or Cost Insurance and Freight (CIF) value, and the prevalent exchange rate if applicable.

In international trade, the seller might mention the International Commercial Terms (INCOTERMS) on an export invoice. The purpose of the INCOTERMS is to be clear about the delivery and risk transfer terms (eg. FOB, CIF, EXW), and the payment terms (eg. advance payment, Letter of Credit).

The exporter shares their bank name, account number, and SWIFT/BIC code in the export invoice to help the buyer make the payment.&nbsp;&nbsp;

This contains details like the mode of shipment: sea, rail or road. It also mentions the port of loading and destination and the shipping bill number if available

The GST registration number of the exporter is displayed on the export invoice if applicable. It also mentions the GST tax rate, however, in the case of zero-rated exports, the invoice should contain a declaration that the export is eligible for zero-rated treatment under the GST regime.

The exporter affirms with a statement that the export meets the international regulations, signs it, and affixes their seal as a declaration

This is a sample export invoice containing most of the details we mentioned above.&nbsp;

On the top left, the text boxes include the exporter’s, final and intermediate consignee’s details. On the right, it highlights other vital information like the order number, exporting carrier, origination state, destination country, loading terminal, and exporter’s contact number.&nbsp;

At the centre, the product details, unit price, and value are mentioned. At the bottom-right corner, the different fees like freight, handling and insurance are mentioned which are added to the total value of the goods to calculate the total amount due.&nbsp;

What Currency to Use in an Export Invoice?

The short answer to this question is: use your client’s currency in the export invoice. The long answer is, to consider multiple factors before making that decision. For example, if your client is based in the US, it makes sense to invoice them in US Dollars as it’s a stable currency.

However, you must also factor in the currency conversion fees the banks charge to credit your account in local currency. If the fees are very high, it may not be the best decision to invoice in the client’s currency.

The Reserve Bank of India (RBI) also allows Indian exporters to send export invoices in Indian currency (INR), it doesn’t necessarily has to be in a foreign currency.

Receive Seamless Export Payments with Skydo

An export invoice plays multiple roles in international trade. This single document helps an exporter stay compliant with international laws, get clearance from the customs authorities, and get paid on time.&nbsp;

<a href="https://www.skydo.com/">Skydo</a> is a trusted platform that streamlines and simplifies your payment experience from international clients. With Skydo, you can open a virtual account and bypass the SWIFT fees you must bear to receive bank account payments. Moreover, Skydo charges upfront fees and there are no hidden charges.&nbsp;

However, it is a good idea to use your client’s currency in the export invoice especially, if it is a stable currency. The long answer is, to consider multiple factors before making that decision. For example, if your client is based in the US, it makes sense to invoice them in US Dollars as it’s a stable currency.

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