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Brc bank ralization certificate

Jane (Export) (48 Points)

13 June 2019

BRC (Bank Realization Certificate) is issued by banks to its customers against export transaction. My firm is doing export and not obtaining BRC from bank for all export transaction. We are issuing BRC for few export transactions, which are required for obtaining benefit from government.

My question is:-

Is BRC a mandatory document & should issue for all export shipments? One guy advised me to issue BRC for all export shipment. Is BRC a regulatory requirement? If not issued, bank will take any action?

Banks are not issuing BRC for OFAC countries. Is there any alternative for doing business with OFAC countries?

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10 Replies

JOJY THOMAS (CHARTERED ACCOUNTANT) (295 Points)
Replied 13 June 2019

IF YOU ARE AN EXPORTER AND PROCESSING ALL THE EXPORT DOCUMENTS THROUGH BANK, YOU WILL GET E- BRC FROM THE WEBSITE OF DGFT

Jane (Export) (48 Points)
Replied 13 June 2019

Thanks for your reply

We are an exporter and value per shipment is below $ 25000. Payment terms is Advance payment. Document is not require to submit bank, if the value is below $25000.

Can we get ebrc from DGFT.

JOJY THOMAS (CHARTERED ACCOUNTANT) (295 Points)
Replied 13 June 2019

NO. ACTUALLY BANK IS UPLOADING THE REALISATION DETAILS TO DGFT . IF YOU WANT THE E BRC, DOCUMENTS MUST BE PROCESSED THROUGH BANK.

Jane (Export) (48 Points)
Replied 13 June 2019

For OFAC countries, Bank is not uploading the realization details to DGFT

CS M Pota (Company Secreatary) (3180 Points)
Replied 14 June 2019

Dear Jane,

In export when you send the export post shipment document to your banker for realisation of export proceeds ,the bank will allot a number to your document and process further for geting the value of export realised.When any Foreign Cusrrency is received as an export proceeds the bank will issue Foreign Inward Remittance Certificate mentioning the number which the bank had alotted to your document so that document and remittance can be corelated.The FIRC will be issued to you and e BRC will be gerated on the web .

If any advance payment has come ,your bank will issue FIRC withou any number and you export against that payment you need to contact your bank and inform that you have effected export against the advance payment which you had received and for which the bank had issued FIRC.The bank then mark the export against the advance paymnet and generate e BRC.

CS M Pota (Company Secreatary) (3180 Points)
Replied 14 June 2019

Dear Jane,

Jane (Export) (48 Points)
Replied 15 June 2019

Dear Malay Pota,

Thanks for your reply. But my question is till not answered.

1. I have done export and received payment. But I wont' like to issue BRC from bank. Is there any regulatory issue.

2. Banks are not executing export documents for Sudan, Iran, Syria, Cuba etc (OFAC listed countries). What are the alternatives?

CS M Pota (Company Secreatary) (3180 Points)
Replied 15 June 2019

If you do not want any export benefits under the Foreign Trade Policy or other Laws applicable to your business doen not require BRC for giving you export benefits then you donot require BRC.

The above said Countries are Sanction Countries which means the Govenrment of India has issued direction as per the agreement entered in to with other Countries that no any export be made to the said Countries so no any export is to be made with that Countries and if amd the Banks in India will nopt deal with the export documents for receiving realisation.

Hope the above is now cleared.

Hope the above is cleared

bhawna rana (student) (22 Points)
Replied 12 November 2022

HI,

My Question is "If we have received advance payment from other country and we have supplied goods to sanction country. In that case how can we get BRC"?