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BRC - what to do with it?

Arpan Jain (MANAGER) (25 Points)

26 September 2010

Hi ,

I have recently setup an STPI unit. I have recieved foreign exchange against software export. I went to the bank to get FIRC, and they handed me a format for BRC. I have few questions now:
What is the exact difference between BRC and FIRC?
Do I need to get a BRC? If yes, what shall I do with it? Do I keep it for my records or submit it to DGFT?

Also do I need to file any periodic returns to DGFT for my IEC?

Eagerly awaiting an early response.

Thanks & Regards
Arpan

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4 Replies

Ramesh (Manager - Finance & Accounts) (92 Points)
Replied 26 September 2010

Dear Arpan Jain,

FIRC (Foreign Inward Remittance Certificate)

BRC (Banker's Realisation Certificate)

FIRC would be provided by a Banker to its customer, when the customer receives payments from foreign countries.

BRC - This is a prescribed certificate need to be submitted with DGFT, BRC can be taken from Banker after getting the FIRC. When you apply for A BRC with a banker you need to produce the FIRC Certificate, which would enable them provide BRC.

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Arpan Jain (MANAGER) (25 Points)
Replied 26 September 2010

Thanks Ramesh.

I got the format for BRC from the bank. But it mentions Customs and GR/PP form etc.

As I need to get BRC against SOFTEX (software export) which is authenticated by STPI as the export was done electonically, I have addeed words STPI in addition to CUSTOMS, and SOFTEX with GR/PP. Please let me know if it is All right to modify the format of BRC. I plan to get it signed by the bank.

Thanks & Regards

Arpan Jain

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 27 September 2010

Subject : BRC - STPI Units

Message :
MR. ARPAN, ACTUALLY OVERSEAS BUSINESS DEPANDS ON MAINLY PAYMENT(AS PER EXPORT SALES CONTRACT) YOUR PAYMENT EITHER RELEASED ADVANCE (TT/DD/FIRC) AND WITHIN 180 DAYS PERIOD DEFINED BY UCPD(APPROVED BY INTERNATIONAL CHAMBER OF COMMERCE) IN LETTER OF CREDIT. <br><br> IN VIEW OF ABOVE, CONSIGNEE IF PAID THE AMOUNT OF GOODS EXPORTED THROUGH ADVANCE PAYMENT , THE BANK ISSUE EXPORTER(US) FOREIGN INWARD REMITTANCE CERTIFICATE . <br> AND IF AS PER EXPORT SALES CONTRACT SHIPPER PAID US AMOUNT WITHIN 180 OR AS PER CONDITION APPLIED AS PER ESC THE SHIPPER PAID THE AMOUNT THROGH LETTER OF CREDIT.

Sent to : Arpan Jain on 27 September 2010

PLEASE CHECK YOUR PM I SEND YOU INFORMATION IN YOUR PM DESIRED BY YOU.