Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

Releasing of BRC

kanhaiya (ACCOUNT ADVISOR) (35 Points)

07 June 2011

Dear All

I want to know that what is the procedure of BRC releasing. my case is that my firm is exported appearl to europe and my account is automaticalt credited the duty drawback from concerning department. i export appearl and develop the design (prototype) which is not exported but payment received through party for that in foreign currency. i don't know what is the requirments regarding the foreign remittance. so please explain the detail procedure for in this situation.

With Warm Regards

Kanhaiya Kumar

B.Com(H)

Reply
Follow
Share

6 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 08 June 2011

ACTUALLY (BRC) SUBMIT IN CUSTOM AT THE TIME OF CLEAR THE DRAWBACK IN YOUR CASE, BANK CERTIFICATE OF EXPORT AND REALISATION ISSUED BY BANKER .

For issuing a BRC from Bank you have to submit following documents to bank for clearance of GR:

1. Copy of Bill of Lading/AirWay bill

2. Two copies of Invoice

3. Original Shipping Bill

4. FIRC (if required)

Submit all above docs to bank and ask him to clear GR. Now bank clear the GR and creat a reference no. Now you have to quote said reference on BRC.

When payment term is LC + usance day you have to submitt all the origibnal documents to bank along with banker's set for negotition. When the payment realized you have to submit BRC to bank quoting the ref no. given by bank while submitting original docs.

ANY QUERY, TELL ME

Upgrade to CAclubindia Pro. Subscribe Now!

kanhaiya (ACCOUNT ADVISOR) (35 Points)
Replied 08 June 2011

Sir i have airway bill and SDF form, i think that i have no required GR form because i have already SDF form. i not exported goods under LC and my payment is received in bank directly from buyer no bank involved in this matter. only i want to know that after the money received in my account what is the legal compliance aboout the export. my duty drawback automatically credited in my bank nothing to do for the same. thanks for reply but my question is not solved so pls help me

Kanhaiya

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 08 June 2011

If you are claiming duty drawback then you need to submit Bank Realisation certificate(BRC) on half yearly.

This needs to be submiited to Customs officer (drawback) from where you did the export.

For getting the BRC you need to approach to the bank where you got your foreign amount remittance.

They will guidel you the documents you need to submit for getting BRC from them.

I hope this will answer your question.

Regards

Dayananda

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 08 June 2011

If you are claiming duty drawback then you need to submit Bank Realisation certificate(BRC) on half yearly.

This needs to be submiited to Customs officer (drawback) from where you did the export.

For getting the BRC you need to approach to the bank where you got your foreign amount remittance.

They will guidel you the documents you need to submit for getting BRC from them.

I hope this will answer your question.

Regards

Dayananda

kanhaiya (ACCOUNT ADVISOR) (35 Points)
Replied 08 June 2011

Dear

But custom department at airport delhi didnot accept any thing related to BRC he tell us duty draw back is given from mumbai not from delhi. and i told to bank for brc he told us to deposit the all export document. but problem is that we have two types of export 1. goods actually exported through air cargo from delhi 2. goods not exported i.e, design & development charges for prototype but we charges the same from client from europe and client paid for that directlly to our bank. what i do for the same 2 types export because bank demanding export document but we have not for the 2nd type of export i.e design development