The Electronic bank realization certificate (BRC) or eBRC is issued by banks to the exporter in order to benefit from the services within the framework of the various foreign trade policy regulations. eBRC is an initiative to promote paperless commerce and the DGFT has created an electronic platform for the bank certificate of achievement. Banks can use the eBRC platform to electronically transfer the banks’ foreign currency realization to the DGFT server. This process is secure through the use of a digital certificate. In this article, we take a detailed look at the Electronic Banking Certificate of Completion (BRC) or eBRC.
The bank is responsible for the following tasks:
- Generate e-BRC.
- Generate an XML file.
- Upload the file to the DGFT server.
- Transfer the obtained monetary value to the DGFT server without converting it to INR.
- Download the INR of the realized monetary value. The conversion must be done in accordance with the specified RBI rates.
- If the exchange rate is not available in the RBI, banks can proceed with the currency conversion according to their standard practice.
The exporter must:
- Log into the eBRC application by logging into the portal.
- Use the option to download BRC.
- Select a file from the file system and upload it.
- The server verifies the user, authenticates the data, and provides the result of the process in XML or tabular format, as selected by the user.
How does the server work?
It is implied that the certificates are uploaded via the DGFT server. Let’s have a detailed understanding of what the server offers:
- Make it easy to download bank-generated files.
- Process the file and save e-BRC.
- Generate confirmation XML.
- Activate e-BRC for the candidate.
- Provide the ability to view the status of the e-BRC.
- Dissemination of e-BRC information to governments or departments/agencies.
- Offer banks the ability to update their branch database.
- Help the bank clerk further delegate authority to subordinate staff to download the file.
The digital certificate must contain 2,048 characters. It must comply with the SHA-2 standard and be approved by the Comptroller of Certification Authorities (CCA). Class 2 and 3 certificates are accepted. The authorized signatory is designated by the DGFT.
Storage place for shipping invoices
DGFT maintains a shipping invoice repository, which enables exporters to record and link electronic shipping invoices and E-BRC data in an automated manner. Repository shipping invoices can be used in all relevant schemas.
Previously, exporters had to provide physical copies of the BRC to the tax authorities. This requirement was lifted as of August 17, 2012. In this way, the decision was made taking into account that the transfer is linked to the DGFT software system, where the details are transmitted electronically.