CCI Online Learning
What do you want to learn today?
     
CIBIL

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Brc bank ralization certificate


Jane (Export)     13 June 2019

Jane
Export 
 46 points

| My Other Post

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?

 

JOJY THOMAS (CHARTERED ACCOUNTANT)     13 June 2019

JOJY THOMAS
CHARTERED ACCOUNTANT 
 16 likes  282 points

View Profile | My Other Post

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)     13 June 2019

Jane
Export 
 46 points

View Profile | My Other Post

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)     13 June 2019

JOJY THOMAS
CHARTERED ACCOUNTANT 
 16 likes  282 points

View Profile | My Other Post

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

Jane (Export)     13 June 2019

Jane
Export 
 46 points

View Profile | My Other Post

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

avater

CS Malay M Pota (Company Secreatary)     14 June 2019

CS Malay M Pota
Company Secreatary 
 87 likes  2749 points

View Profile | My Other Post

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.

avater

CS Malay M Pota (Company Secreatary)     14 June 2019

CS Malay M Pota
Company Secreatary 
 87 likes  2749 points

View Profile | My Other Post

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.

Jane (Export)     15 June 2019

Jane
Export 
 46 points

View Profile | My Other Post

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?

 

avater

CS Malay M Pota (Company Secreatary)     15 June 2019

CS Malay M Pota
Company Secreatary 
 87 likes  2749 points

View Profile | My Other Post

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 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  



Related Threads


Loading

Popular Discussion


view more »



Trending Tags
GST Live Class    |    x