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Discussion > Custom >

Bank realisation Certificate (BRC)

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[ Scorecard : 13285]
Posted On 25 August 2008 at 12:37 Report Abuse

What is meaning and importance of BRC (Bank realisation Certificate)? Is it necessory to take BRC for each export invoice raised?

Please also explain regarding realisation rate, amount etc. and the provision for making BRC

Thanks

 


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KAMAL SETHI
MBA (Finance)

[ Scorecard : 221]
Posted On 25 August 2008 at 18:07

Bank Certificate of Export & Realisation is most often sought by companies who have exported their goods under DEPB Scheme (Duty Entitlement Pass Book Scheme). By this policy , as a process of boost foreign currency & exports in country, Government provides you DEPB licence of value (approx 7-10% depending on the commodity you have exported and the rate fixed by Govt. on the same) , the license can be used against your import duties or the best can be transferred to someone else in market and thus making a gain. Now, coming on your main point , Government provides certificate only when the export proceeds are realised and Bank Certify the same that the foreing currency were been received , realisation rate is the rate at which currency were converted into INR.





Member (Account Deleted)

[ Scorecard : 13285]
Posted On 26 August 2008 at 10:33

Dear sir

BRC are also used in Advance licence (DEEC) taken from JDGFT. BRC is basically a certification of total export procedure which is certified by bank. In my openion an exporter needs to take BRC for each realised foreign transaction made by him.

BRC makes on basis of exchange rate realised at Bank. My question is 1. whether we deduct FBC from realisation value as we have credited to customer on full value.  2. What will be the rate of exchange in case of PCFC taken from bank. 3. what is the time limit for taking a BRC from Bank.




Gabriel Michaelsamy
Plastic packaging manufacturer

[ Scorecard : 20]
Posted On 17 September 2008 at 19:53

Sir, we are DTA supplier to SEZ.  Our Excise officer insists that we produce BRC for our sales to SEZ.  We effect supplies without payment of duty under a LUT and Form ARE-1 .  He says that If we do not get payment for supplies to SEZ in foreign currency account of the buyer, our sales is to considered as a normal sales and duty has to be paid; and the unit in SEZ to get duty drawback from the relevant Development commissioner.  Pl elucidate.




(Guest)
Posted On 22 September 2008 at 12:21

Request kindly confirm if the below calculation i correct while applying for BRC:-

From shipping bill CFR value US $

less freight paid US $

FOB value US $

(are commissions & discount given to the customer to be deducted to show the FOB value)

Please clarify.

Regards,

anirudh

 

 




Member (Account Deleted)

[ Scorecard : 13285]
Posted On 22 September 2008 at 22:14

Dear Anirudh

In BRC, Commission or Discount shown but for only informative.  It will not be deductible from CFR value.

As the CFR/CIF value of export are inclusive only freight/insurance values hence calculation of FOB is only make after deduction of above only.

Rajesh

 




(Guest)
Posted On 03 October 2008 at 16:53

Originally posted by :Rajesh
" What is meaning and importance of BRC (Bank realisation Certificate)? Is it necessory to take BRC for each export invoice raised?
Please also explain regarding realisation rate, amount etc. and the provision for making BRC
Thanks
 
"


 




(Guest)
Posted On 03 October 2008 at 16:56

Originally posted by :Rajesh
" We have not submitteed export details for realisation of bank from few months hardly 8-9 months?What would have we do?  "


 




Member (Account Deleted)

[ Scorecard : 13285]
Posted On 05 October 2008 at 12:25

Dear Arun

Please submit BRC or GR clearance form to bank as early posible.

All banks have to submit a return to Reserve Bank  regarding total export realisation. If you are not submit document to bank in time you may be in problem to face  queries/audit from reserve bank.

Please also be aware that the submission of document should be done with in 21 days of shipment, in case of sea and 7 days in Air.

 




(Guest)
Posted On 14 October 2008 at 11:37

Dear Sir,

We have applied for the BRC & we got from the bank,now some mistakes has been done,if we want to make a another brc what we have to do.

Pls let me know



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