eBRC in Export Payments: What It Is & How to Get It
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.
What is eBRC?
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. 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 Bank Realization Certificate (BRC) 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.
How does eBRC work?
In India, banks issue an -BRC to exporters through the following process.
- Once you receive payments for the goods and services exported, the bank generates an eBRC certificate digitally.
- Later, it generates an XML file containing all the eBRC information.
- The banks sign the XML file using the Directorate General of Foreign Trade‘s (DGFT) signer. They must register the signer with the DGFT beforehand.
- The bank uploads the e-BRC XML file to the DGFT server via the website. Once uploaded, the DGFT reviews the XML file and verifies the information.
- Once the DGFT verifies the user and the data, it sends an acknowledgement to the bank of the successful verification.
- The exporter can log in to the DGFT website, check the eBRC DGFT status, and take a printout.
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.
- Go to the official DGFT website and navigate to the "Services -> eBRC" (it is at the end of the list of options).
- Choose "View and print your eBRC" from the options provided.
- You will be redirected to the "e-BRC Details for Trade" page, where you need to enter your IEC (Import Export Code) and the IFSC Code of your bank.
- Click on the "Show Details" button, and you'll be able to view all the e-BRCs uploaded by your bank.
How to Download eBRC?
- Visit the DGFT Website
- Log in using your user ID and password
- On the home screen, navigate to My Dashboard and select Repositories from the drop-down menu.
- Under the Bills Repositories section, click on Explore to proceed to the Bills Repositories page.
- From the Select Bill drop-down, choose Bank Realisations (eBRC). Enter the required details to search for your e-BRC and click Search.
- Scroll down to find the eBRC you need and click on the Bank Realisation hyperlink.
- Click the Print eBRC button to generate and download your certificate.
Why Do Exporters Need eBRC?
Compliance with DGFT regulations
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.
Simplifying export documentation
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.
Claiming Exporter Benefits
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.
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.
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.
Here's how you can claim these benefits with eBRC:
- Submit all the shipment bills on the Indian Customs Electronic Data Interchange Gateway (ICEGATE) platform.
- Once submitted, ICEGATE shares the bill information automatically with the DGFT. You need to link the relevant shipping bill with eBRC to claim export benefits.
- The DGFT analyses the FOB value or the consolidated realisation value in the case of multiple products and incentivises the exporter for the lower value between the two.
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.
e-BRC Certification Resources and Tools
Here are some key resources and tools that can help you in your endeavour to obtain your e-BRC.
- eBRC Portal: The eBRC portal is the primary platform for exporters to apply for and obtain their e-BRC certificates. You can access the portal through the DGFT website. The e-BRC portal provides user manuals and guidelines for exporters.
- Banks: Exporters can also contact their respective banks for guidance on obtaining eBRC . Banks are involved in the e-BRC issuance process and can explain the documents required and the steps to follow.
- Export Documentation Software: You can streamline your export documentation processes by utilising software solutions available that can assist in eBRC DGFT submissions. These software tools often integrate with government portals and can assist in generating and submitting the required documents accurately.
Conclusion
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.
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.
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.
You can contact industry experts at Skydo to help you with the eBRC process and in case you have any other queries related to foreign exchange.
Can I claim a tax refund using the eBRC?
Ans: You can claim a tax refund using the e-BRC if you are an exporter of services and not any goods. You must attach the e-BRC with the income tax refund application.
You can also apply for income tax credits paid on inputs or IGST (Integrated GST) paid on the exportation of services.
What is FIRC, and what is its connection with e-BRC?
What are the documents needed to obtain eBRC?
Is it possible to obtain an e-BRC for export transactions placed in the past?
Are eBRCs required for every export transaction?
