Policy Circular No-01/2012 dated 18.6.2012
Introduction of electronic Bank Realization Certificate (e-BRC) system.
Through Public Notice No. 02 dated 5.6.2012 electronic issuance of BRCs have
been initiated which obviates submission of physical copy of BRC to claim
benefits of the FTP Schemes.
2. Following are for information and guidelines:-
A. For Banks:-
(i) Uploading of BRC data by banks can be done at any time and it should be
electronically transmitted on a daily basis.
(ii) Electronic issuance of BRC has started with effect from 05.06.2012.
Physical submission of BRC would continue concurrently for one month from
05.06.2012. BRCs which have been issued manually after 01.04.2012 shall be
converted in the digital (XML) format by the banks and uploaded on DGFT server.
This exercise may be completed by 31.07.2012.
(iii) Banks shall upload the rupees equivalent of the realised foreign exchange,
based on the monthly exchange rate notified by Central Board of Excise and
Customs (CBEC), Ministry of Finance. In case the realisation is in a
denomination other than the notified currency, the rates given by RBI shall be
adopted. In case exchange rate is not available from RBI then banks will do
currency conversion as per their present existing practice.
B. For exporters:-
e-BRC details available in the DGFT server will not contain the details of
amount of commission paid. This amount has to be provided by the exporter at the
time of filing online application.
C. For RAs:-
The net foreign exchange earnings (in foreign currency) reflected in e-BRC,
transmitted by banks would indicate FOB value (as per valuation made by custom
authorities on the shipping bill). While granting Chapter 3 benefits, RA shall
consider the net foreign exchange earnings. In case of shortfall in foreign
exchange realization with respect to the shipping bill FOB value, pro rata
distribution of realized foreign exchange against each export item will be made
by the system itself. To explain in detail, three illustrations are given
below:-
Illustration 1 (Single Export Product) – If NFE as per e-BRC is US $ 100/- and
FOB value as per Shipping Bill is US$ 80/- , then benefit would be granted on US
$ 80/-.
Illustration 2 (Single Export Product) - If NFE as per e-BRC is US $ 100/- and
FOB value as per Shipping Bill is US $ 120/- , then Chapter 3 FTP benefit would
be granted on US $ 100/-.
Illustration 3 (Multiple Export Items On Single Shipping Bill) - If Shipping
Bill contains 3 export items A,B and C with FOBs US $40, US $60 and US $80
respectively (total FOB US $180/-). If the total NFE realised as per e-BRC is
US$90/-, then by pro-rata calculation the benefits on 3 items i.e. A, B and C
will be calculated on 20 US$, 30 US$ and 40 US$ respectively.
This issues with the approval of Director General of Foreign Trade.
(Rajiv Arora )
Joint Director General of Foreign Trade
(Issued from F. No. 01/02/110/AM 12/EDI )