Electronic Bank Realization Certification (eBRC) is a certificate issued by the bank certifying that payment is received in foreign currency against the export of service and goods. As per FEMA, exporters are required to receive payment against export of goods and services within a specified period of time. Timely receipt of foreign currency is a condition for issuance of GST refund as well.
So far, eBRC is processed and issued by the recipient bank on application of the exporter. However, considering the increase in the quantum of export and burden on banking personnels, the DGFT has revamped the entire system of eBRC generation.
This article discusses the revamped process of e-BRC in details:
1. What is electronic Bank Realization certificate
“eBRC” stands for “Electronic Bank Realization Certificate”. eBRC acts as proof that the exporter has realized foreign currency against export done for goods and services. eBRC is done by matching foreign inward remittance received in a Bank with Shipping Bill details available on ICEGATE or DGFT Portal.
eBRC is issued by the bank at the request of the exporter.
2. Benefit of obtaining e-BRC
As per Foreign Exchange Management Act (FEMA) guidelines, the amount representing full value of export shall be realized and repatriated to India within 9 months or within such time as may be prescribed.
Further, as per GST law, exporters are required to realize and repatriate foreign currency within 9 months from date of export.
Realization and repatriation is substantiated through eBRC. An exporter is entitled to the following benefits subject to obtaining eBRC:
- Avail incentive of Foreign Trade Policy under DGFT for following policies:
- Advance Authorisation Scheme: Advance Authorisation Scheme permits duty-free import of inputs, including those incorporated in export products, as well as packaging materials, fuel, oil, and catalysts consumed in production. Advance Authorisation covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s).
- Export Promotion Capital Goods Scheme (EPCG): Export Promotion Capital Goods (EPCG) Scheme aims to enable the import of capital goods to improve the quality of goods and services and boost India's manufacturing competitiveness. Under this scheme, capital goods can be imported duty-free for pre-production, production, and post-production activities. Additionally, capital goods imported under the EPCG Scheme for physical exports are exempt from IGST and Compensation Cess until 31.03.2020.
- MEIS / SEIS / TMA (legacy schemes): Merchandise Exports from India (MEIS) Scheme serves as an incentive scheme to promote goods exports. MEIS consolidated several export incentives. Similarly, Service Exports from India Scheme (SEIS) promotes service exports from India by rewarding service providers with duty script credit for eligible exports. Service providers in India receive rewards for all eligible exports under this scheme.
- Benefits under GST Certificate:
Apart from various incentives under FEMA, exports are also entitled to following benefits under GST through eBRC:
- Refund of unutilized ITC for tax-free exports.
- Refund of tax on exported services with tax payment.
- Refund of unutilized ITC for supplies to SEZ without tax payment.
- Refund of tax on supplies to SEZ with tax payment.
- Refund of tax on deemed exports to suppliers.
- Refund of tax on deemed exports to recipient.
3. Current process of obtaining eBRC
Under the current process, the exporter is required to raise a request with the bank for issuance of eBRC. Following is the current process for export of goods and services:
- Export of goods
- Post export of goods, the exporter prepares necessary documents such as Shipping Bills or Bills of Export.
- Remittance for export is received in Exporter's bank account in foreign currency.
- Exporters raise request with bank alongwith supporting document for issuance of eBRC.
- Bankers match the inward remittance with shipping bills populating on ICEGATE or DGFT portal.
- After verification, banks upload the eBRC to the DGFT system.
- Exporters can download the eBRC from the DGFT website and utilize it accordingly.
- Export of Services
- In case of export of services, no shipping bill or bill of export is available.
- Exporter raise request for issuance of eBRC after submitting supporting documents such as Softex certificate, eFIRC, and other relevant documents to the banks for eBRC processing.
- After verification, banks upload the eBRC to the DGFT system for record-keeping and validation.
- Thereafter, Exporter can download the eBRC from the DGFT Website and use the same.
4. Short comings and Issues in current eBRC process flow
Currently, entire industry is facing following issues in current eBRC process:
- Issues for banks
- 出口业务量的增长给银行带来了沉重的负担。
- 银行需要为每笔交易更新 eBRC/EDPMS，这增加了他们的工作量。
- 银行需要核实多份文件以抵扣 IRM（外汇汇入报文）。
- 在取消或更改 eBRC 时，流程十分繁琐。
- 出口商面临的问题
- 出口商需要就每张发票和每笔汇入款项分别向银行提出申请。
- 需要提交多份文件，例如：
- 商品出口需提交所有装运单和发票副本（部分银行要求）
- SOFTEX 核销
- 快递出口单据
- 上述文件涉及大量纸质材料。
- 流程中还包括提交更多文件以进行澄清，并需要后续跟进以确保最终签发。
- 这导致出口福利获取、GST 退税申报等工作出现延误。
5. 当前 eBRC 流程中的问题 – 服务出口
在服务出口的情况下，eBRC 系统无法生成准确的服务出口数据。出口商面临的差距如下：
- eBRC 用于申请软件和其他服务出口的 GST 退税。
- 然而，eBRC 系统并未采集服务分类数据。
- 退税申请人可以选择生成 FIRA（外汇汇入建议书）而非 eBRC，但该数据同样未被采集。
- 不同机构使用不同的分类系统，在缺乏详细数据对照的情况下，标准化和分析工作极具挑战性。例如，不同文件使用了以下命名法：
用于服务分类的系统代码：eBRC SAC 代码、GSTN SAC 代码、FETER 目的代码、FIRA RBI 目的代码、SOFTEX RBI 目的代码
6. 改版后 eBRC 系统的流程
在修订后的 eBRC 系统下，货物出口和服务出口适用以下相似流程：
- 出口商的银行账户、PAN 和 IEC 代码信息已由 DGFT 掌握，
- 银行通过 API 集成，将银行账户收到的所有外汇汇入报文 (IRM) 根据关联的 PAN 号推送至 DGFT 门户网站，
- 银行仅推送与贸易账户相关的 IRM，而不推送与资本账户等相关的 IRM，即仅推送与货物或服务出口相关的汇款。
- 出口商登录 DGFT 网站 (https://dgft.gov.in) 后即可查看 IRM 详情。由于 IEC 与 PAN 关联，只有相关的 IEC 持有人才能查看其 IRM。
- 出口商需要将其门户网站上的装运单与此类汇入汇款进行关联，以生成 eBRC，
- 出口商通过匹配 IRM 与相关的装运单、SOFTEX 或发票详情来创建 eBRC。多笔 IRM 可归入一份 eBRC，或一笔 IRM 可拆分至多份 eBRC 中。
- IRM 中提到的 RBI 目的代码及其他字段将用于验证出口商认证的 eBRC 字段。
- 出口商生成的 eBRC 将流转至银行进行事后审计风险评估。
- 未来可能还会开发与其他机构共享此类 eBRC 的流程。
7. 改版后 eBRC 流程的关键特性：基于自我认证
- 通过无纸化 eBRC 生成，降低了出口商的合规成本；
- 有利于小型出口商，特别是对于低成本、高交易量的电子商务出口，有助于申请福利和退税；
- 减轻了银行的工作量，银行将专注于针对性风险，而非检查所有交易文件；
- 流程更加快捷，因为 eBRC 由出口商自行生成。
- 每家银行将自行决定转向自助 eBRC 生成的截止日期。在此日期之后收到的 IRM 将提供给出口商用于生成 eBRC。
