DGFT Policy Circular No: 01 (RE-2012) /2009-14 (18-Jun-2012) Introduction of electronic Bank Realization Certificate (e-BRC) system

Through Public Notice No. 02 dated 5.6.2012 electronic issuancesof BRCs have been initiated which obviates submission of physicalcopy 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 itshould be electronically transmitted on a daily basis.

ii.Electronic issuance of BRC has started with effect from05.06.2012. Physical submission of BRC would continue concurrentlyfor one month from 05.06.2012. BRCs which have been issued manuallyafter 01.04.2012 shall be converted in the digital (XML) format bythe banks and uploaded on DGFT server. This exercise may becompleted by 31.07.2012.

iii.Banks shall upload the rupees equivalent of the realisedforeign exchange, based on the monthly exchange rate notified byCentral Board of Excise and Customs (CBEC), Ministry of Finance. Incase the realisation is in a denomination other than the notifiedcurrency, the rates given by RBI shall be adopted. In case exchangerate is not available from RBI then banks will do currencyconversion as per their present existing practice.

B. For exporters:-

e-BRC details available in the DGFT server will not contain thedetails of amount of commission paid. This amount has to beprovided by the exporter at the time of filing onlineapplication.

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 netforeign exchange earnings. In case of shortfall in foreign exchangerealization with respect to the shipping bill FOB value, pro ratadistribution of realized foreign exchange against each export itemwill be made by the system itself. To explain in detail, threeillustrations are given below:-

Illustration 1 (Single Export Product) - If NFE as per e-BRC isUS $ 100/- and FOB value as per Shipping Bill is US$ 80/- , thenbenefit would be granted on US $ 80/-.

Illustration 2 (Single Export Product) - If NFE as per e-BRC isUS $ 100/- and FOB value as per Shipping Bill is US $ 120/- , thenChapter 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 thetotal NFE realised as per e-BRC is US$90/-, then by pro-ratacalculation the benefits on 3 items i.e. A, B and C will becalculated on 20 US$, 30 US$ and 40 US$ respectively.

This issues with the approval of Director General of ForeignTrade.

Rajiv Arora

Joint Director General of Foreign Trade

(Issued from F. No. 01/02/110/AM 12/EDI)