What is meaning and importance of BRC (Bank realisation Certificate)? Is it necessory to take BRC for each export invoice raised?
Please also explain regarding realisation rate, amount etc. and the provision for making BRC
Thanks
KAMAL SETHI
(MBA (Finance))
(226 Points)
Replied 25 August 2008
Bank Certificate of Export & Realisation is most often sought by companies who have exported their goods under DEPB Scheme (Duty Entitlement Pass Book Scheme). By this policy , as a process of boost foreign currency & exports in country, Government provides you DEPB licence of value (approx 7-10% depending on the commodity you have exported and the rate fixed by Govt. on the same) , the license can be used against your import duties or the best can be transferred to someone else in market and thus making a gain. Now, coming on your main point , Government provides certificate only when the export proceeds are realised and Bank Certify the same that the foreing currency were been received , realisation rate is the rate at which currency were converted into INR.
Dear sir
BRC are also used in Advance licence (DEEC) taken from JDGFT. BRC is basically a certification of total export procedure which is certified by bank. In my openion an exporter needs to take BRC for each realised foreign transaction made by him.
BRC makes on basis of exchange rate realised at Bank. My question is 1. whether we deduct FBC from realisation value as we have credited to customer on full value. 2. What will be the rate of exchange in case of PCFC taken from bank. 3. what is the time limit for taking a BRC from Bank.
Gabriel Michaelsamy
(Plastic packaging manufacturer)
(25 Points)
Replied 17 September 2008
Sir, we are DTA supplier to SEZ. Our Excise officer insists that we produce BRC for our sales to SEZ. We effect supplies without payment of duty under a LUT and Form ARE-1 . He says that If we do not get payment for supplies to SEZ in foreign currency account of the buyer, our sales is to considered as a normal sales and duty has to be paid; and the unit in SEZ to get duty drawback from the relevant Development commissioner. Pl elucidate.
| Originally posted by :Rajesh | ||
| " | What is meaning and importance of BRC (Bank realisation Certificate)? Is it necessory to take BRC for each export invoice raised? Please also explain regarding realisation rate, amount etc. and the provision for making BRC Thanks |
" |
| Originally posted by :Rajesh | ||
| " | We have not submitteed export details for realisation of bank from few months hardly 8-9 months?What would have we do? | " |
Dear Arun
Please submit BRC or GR clearance form to bank as early posible.
All banks have to submit a return to Reserve Bank regarding total export realisation. If you are not submit document to bank in time you may be in problem to face queries/audit from reserve bank.
Please also be aware that the submission of document should be done with in 21 days of shipment, in case of sea and 7 days in Air.
| Originally posted by :Guest | ||
| " | Dear Sir, We have applied for the BRC & we got from the bank,now some mistakes has been done,if we want to make a another brc what we have to do. Pls let me know |
" |
Dear Prem
You can take a new BRC from bank for this you have to conveinced them about the new one. Other way is to make alteration on same BRC and get verification from bank.
Be assure that any copy of said BRC was not submitted to JDGFT . If you have submitted it there then you also have to exchange BRC from that office.
| Originally posted by :Guest | ||
| " | Q. Can we prepare Bank Realisation Certificate against Advance Payment vide FIRC ? Q. What is the procedure of Bank Realisation Certificate till realised payment to DGFT? Q. What is the relation of GR or BRC? Q. How BRC assist to file import licence ? |
" |
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