Difference between BRC and FIRC

 

The information provided here is part of Online Export Import course 


How to differentiate between BRC and FIRC?

 

I have been receiving many enquiries asking the difference between BRC and FIRC - Bank Realization Certificate and Foreign Inward Remittance certificate. Some asked, what is BRC and others what is FIRC and difference between BRC and FIRC.
 

Strictly speaking, both are certificate issued by authorized dealer bank to the customers for receiving amount from foreign countries. Let us discuss in detail:
 

FIRC is issued against any receipt of amount from foreign countries by a bank to their customers. It can be an advance payment against export proceeds, ocean or Difference between BRC and FIRCairfreight, or remuneration or wages under consultancy charges or for any other reasons.
 

BRC means Bank Realization Certificate issued by bank to their customers against any specific documents. Normally BRC is issued by a bank to their customers who has been in to export business on each shipment of export proceeds. Various export promotion agencies provide incentives, import duty exemptions and other financial assistance to the exporters. These agencies requires to be submitted export proof by exporters to claim such benefits. One of the proof of exports other than export promotion copy of shipping bill (EP copy of shipping bill), Mate Receipt issued by the carrier and/or customs authorized ARE-1 (for goods under central excise only) is Bank Realization Certificate BRC issued by the respective bank who received foreign amount for exporters.
 

So once after receiving the amount under each shipment, the exporter approaches their bank and submits the proof of exports and FIRC details (Foreign Inward Remittance Certificate) to obtain a BRC under each shipment. This Bank Realization Certificate BRC is submitted with the various authorities as proof of shipment or proof of exports along with customs legal document of EP copy of shipping Bill, Mate receipt issued by carrier of goods and central excise document of ARE – 1 where ever applicable.
 

Here you need to observe that an FIRC can be obtained whenever you receives amount from foreign country. It can be an advance amount against exports or services.
 

Before introducing EDI system (Electronic Data Interchange), a GR form has to be filed by exporters along with shipping bill to customs for completion of export procedures and formalities. The copy of shipping bill is impressed on GR form. GR form is a document of export to be submitted with RBI to regulate foreign inward remittance. In order to get BRC, exporter has to submit a copy of GR form to prove the account under which they had received foreign amount.
 

At present, there is no FIRC or BRC required for government export promotion agencies like DGFT or Customs department where in EDI facility available, as the said foreign receipt is directly linked electronically with customs and DGFT through the authorized dealer bank of exporters.
 

So, the exporters need not obtain FIRC (foreign inward remittance certificate) or BRC (Bank realization certificate) from their bank to claim any export benefits from DGFT or customs department.  Also read - NO BANK REALIZATION CERTIFICATE FOR INDIAN EXPORTERS.  Difference between GR and SOFTEX

 

I hope, I could explain  the difference between BRC and FIRC.  Have you satisfied with the explanation on the difference between FIRC and BRC?  What is your experience in handling FIRC and BRC?   Would you like to add more inforamtion about FIRC and BRC?

 

Share your experience in handling BRC and FIRC below.

 

 

 The above information is a part of Export Import Online Tutorial

 

 

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Comments


is it possible to issue brc in case of original copy of firc is lost?: is it possible to issue brc to an exporter when the original copy of firc is lost and with xerox copy of firc, and other original copy of exchange control,invoice, covering letter, shipment copy, fema declaration and etc. plz answer @ the earliest. regard devendra kumar

admin: Hi Devendra kumar, You may contact your bank who can provide accurate information.

K CHANDRASEKHAR: Dear Sirs, I have gone through the Difference between BRC and FIRC thru your article dated 25th, February, 2013. I would like to request you to kindly can u provide me any authenticated Notification/Circular from any Govt Dept in this regard. Your help us a lot.

Krishna: Dear K Chandrashekhar, Can some one explain more about BRC and FIRC. Just for an interest to know more about BRC and FIRC.

Thomas: As per my knowledge BRC is Bank release certificate under an export and FIRC for any reciept of foreign payment.

Kumar: good information !!

Anshul: Hi, Thanks for the info. I have a started a small export business and recently shipped a few products using the postal route and about to receive my first payment less than $1000. I asked my bank (HDFC) - they said I can receive the payment directly into my current account against which HDFC will provide me with FIRC. So far so good. But after that, they said, I need to submit shipping documents and get a BRC. My question is, if I am not claiming any incentives, do I need to submit shipping documents and ask for a BRC? Can I get penalized for not submitting shipping info? Also, can the shipping info be just a registered post receipt? Thanks,

ADARSH MEHRA: My company is into exports and i want to know that if the forein inward payment is recieved in other bank rather than the bank mentioned in the exchange control copy can BRC be issued by the bank which recieved payment against FIRC

krishna: Dear sir, Very much thanks for your selfless service by sharing the knowledge with free of cost. We have a small doubt that what is house BL and how it works. regards, krishna.

surendran: Hi Krishna, Know about house BL, please read http://www.howtoexportimport.com/How-to-differentiate-BL-and-HBL--470.aspx

Vivek: Dear sir, I want to know that can eBRC be issued on Exchange Control Copy of Shipping Bill or is it compulsory to submit Export Promotion Copy of Shipping bill only? What if we have given to bank EC Copy's no. & date instead of EP Copy's no. & date for obtaining eBRC?

Amrin Himani: Dear Sir, Is there any provision where one can claim benefit of FTP, where exports made to Iran and the receipts are directly credited to the bank accounts of the company and bank denies to issue FIRC/BRC ??

Arjun: really good description

FIIFI ESSUMAN: KINDLY SEND TO ME MORE DETAILS OF EXPORT & IMPORT TRADE AND PAYMENT TERMS ETC

ela: sir what is the difference bet correspondnt bnk,advising bnk,negotiation bnk

pournima: Why there is not auto dispatch of FIRC to beneficiary from the remitter bank in whose account the foreign money is being remitted.

Karthik: Hello, I would like to know if in the vent that the exporter has lost the Exchange control copy ,can he submit any other document to the Bank like the xerox copy of the Exporter copy or Xerox of theEP copy? Is there a way to get a duplicate shipping bill copy from customs ,for the sole purpose of submitting it to the bank? Please advise .

Swapna: Satisfied. Thank you

Rajan: FIRC is issued with validity of one year . does the validity is counted from the date of issuance of FIRC or from the date of receipt of funds by AD and credit effected to the beneficiary`s account. Thanks

Dipak: please advise if any exporters ferget to take BRC copy from bank and after three years time he approached bank for BRC but bank is refused to issue BRC with reason that now the country in which matrial is exported is under senction country they can not issue the brc against inspite all papers are in regular mode,so absence of BRC copy exports should have right to get all export Benefit from DGFT.Please advise.

Prajakta: Dear sir, We are exporter and we have unit in SEZ. we certified export house. Recently we are facing problem from Bank for mismatch of remittance buyer name, and bank refuse to issue BRC. Our terms with buyer is advance and balance against BL. Now buyer is made advance payment from their own arrangement,which is not in his name, which i have no control. In this case what i can do with bank under which notification. please guide us.

Ahm Islam: hi, I have been reading your posts & gained some knowledge through them. I am working on Refined Oil products. I have End Buyer & End Seller set up. As well as I have my own Financial partner too to finance transaction. Basically, all i am trying to get is "Back to Back" transaction. Since, i have not been in the real field physically yet, is there anywhere I can get or you can provide me some relevant info. Please advise. Ahm

Surendran Kollerath: Hi Amrin Himani, As per my latest information, FIRC/BRC is exempted as the same is directly linked with authorized bank. Please re confirm once again with the authorities

Surendran Kollerath: Hi Karthik, Since most of customs locations have the fecility of filing documents electronically, arranging a duplicate copy of EC copy is possible. The exporter also can approach for a duplicate copy of EC copy with customs officials if shipping bill was filed manually. You can also consult your authorized banker about the acceptance of xerox copy of EP copy of shipping bill in lieu of EC copy of shipping bill.

Surendran Kollerath: Any reader who knows about 'Back to Back Transaction' can reply to Mr.Ahm Islam

Surendran Kollerath: Hi Prajakta, Same issue has been being continued nowadays for many exporters after introduction of fast remittance arrangements in this globalized scenario. However, foreign inward and outward must be monitored by each country which is the indicator of balance of trade in turn economy of each country. So I request all exporters and importers to have a good idea about fund transfer from buyer to supplier after reconfirming with their authorized banker.

Manibhai Patel: Hye I am M.G. Patelpls.canyou advise me How to send on line Brc certificate to DGFT and get receipt of DGFT? and also send the link for online sending the BRC certificate

KARUPPASAMY K: Dear sir, I want receive money from london. I need FIRC how i can this certificate whom issued this certificate. please tell me breifly about this. Please send to my mail id.

krishna vinay: how to modify a purpose code in FIRC,which is entered wrongly.what is the procedure

M Durai Rajan: We have been exporting fashion garments (silk and other) for the past 2 years through e commerce. We have got the FIRC from the banks for all exports. We are not interested in availing any export related benefits from the government or other authorities at the moment. Is there a need to get the BRC? What purpose does it serve? Does the accounting of the foreign exchange received through the banking channels complete on our side - we receive funds from our customers through registered payment gateways directly into our account and we export our consignments as commercial cargo. We have the commercial invoice and the FIRC for each consignment. Please advice if we require the BRC. In case we decide to go for any export related benefits from the authorities in future, how do we go about doing that? Thanks and regards. Durai Rajan

Bhavyesh shah: Hello good morning, My question is for what purpose BRC & foreign exchange remmitance use?? If my company is provide gems or gems manufacturer and gems mah be in colour and also have research center for identify the same. Then on that which typ of duties applicable???

sanjay kumar singh: thanks allot it is very useful to us.

rs verma: dear i am working in leather industries for leather machines service. one Italian machine manufature company ask me to give support for reparing of his machine. i am ready to do. but how i can get payment from him. he is asking for bill. i am not regested firm. how i can make invoice. and get this money thu. bank. pls help me.

Asish Biswas: My export payment received by another bank and I got FIRC from that bank. Now I have to submit export documents to my bank where my current accout is. My question is that is it necessary to submit Original FIRC along with the exorts documents to my bank?

SUBHASH: Dear sir, we are exporter and payments remitted by the HDFC BANK a advance payment ie. FIRC NOW HDFC BANK ACCOUNT CLOSED AND PENDING BRC IS TO BE UPDATION TO OTHER EXISTING BANK KARNATAKA BANK PLEASE INFORM US ARE KARNATAKA BANK CAN UPDATION THE BRC WHICH PAYMENT RECEIVED THROUGH HDFC BANK PLEASE INFORM US THANKS ! IT IS MOST URGENT

B.RAVISHANKAR: Sir, I have received payments through INDIAN BANK - TREASURY BRANCH, CHENNAI and proceedings credited to my SYNDICATE BANK a/c for which I have got the FIRC's. Now SYNDICATE BANK is denying to upload E-BrC into the DGFT site. I am about to lose nearly 5 lacs INR from FOCUS PRODUCT SCHEME. kINDLY SEND ME A PERSONAL URGENT MAIL IMMEDIETLY IF POSSIBLE. Already I have lost 3 lacs earlier. Kindly oblige. Ravishankar.

suresh: Dear Sir, We are exporters of Areca Leaf plates! Kindly guide me for the following: (1) I receive Inward remittance by SWIFT and i have received FIRC. Bank is taking more time and avoiding to issue e-brc. Can i claim incentive under MEIS using the FIRC (2) Some of my payments are being made by International RTGS. How do i get FIRC or e-brc. KINDLY GUIDE ME, THANKS AND REGARDS, SURESH

MANISH DALWADI : I used to read your Articles n How to Export and Import, and gain valuable knowledge in the filed. sir, I have one query..We want to make a transaction in which we will place an purchase order in One Country say USA with instruction to Export the same directly to another country say Africa, without bringing it to India. So how can we made this transaction and what procedure we should follow with respect to Receipt and Payment of foreign Exchange in terms of recent RBI policy.

Kamal Israni: dear sir, please do let me know one thing, if we export material to some buyer and we get payment in dollars from other person or from other country, then how can we get the BRC from our bank, as bank says its not allowed to get dollars from some other person, please do let us know what to do in this situation

samba murthy: Respected Seniors, i have registered AD code from bank A and all my FIRC is received on bank B, is it possible to get the BRC from bank A. Please help me with your valuable information please, do the needful.

SHAFIQUE: Dear Sir, what is duty draw back scheme, how and when can we avail the benefit

Ankur: Hello, I export and do not take any draw back. I have an account with HDFC Bank. They send us FIRC for each advance payment. Do we need to submit export document of each export to HDFC. These people charge approx Rs 2900 for each export realization transaction. They pressurised us to submit the export docs for our exports. And now they charged my account for Rs 2862 per transaction. Total of 11 transaction. Similar transaction for the year 2015-16 are also to be given to them . What to do, please guide.

rahul: bank denying to upload ebrc , as part payment received from the third party. what can we do

ADP Garg: Dear Rahul, Could you satisfy (with documents) your banker that the payment (part) received from third party relates to the same export made/invoice raised by you.

SANTOSH: bank is denying to accept the export documents because there is customer name difference in our firc & shipping documents, can we go to RBI with this documents? if yes please suggest the department of RBI handling this issue.

bishnu: an we isse brc in case having purpose code p1006??

shivam sharma: Dear sir i am facing a problem that total amount advance received near Rs. 2.5 crore to iran and total export against advance payment is near Rs. 2.482 crore for the year 2015-16 and balance Rs. .018 crore is not traceable amount in export. but after that we receive also some advance amount then such respective bank says we can release all fund but except Rs. .018 crore. my question is it action taken by bank is right and as per rules. +91-9286103434

Sahil Allawadhi : First of all, I would to thank you as your articles are really worth reading. I am a director of a software company. We deliver softwares, applications, modules and other online work (say on per hour basis also) to foreigners against which we receive payment firstly in our PayPal account (in dollars) and then the payment is received in our local INR bank account linked to that PayPal account. Kindly guide me through any of the FEMA or any sort of other compliances that need to be enforced by our side.

muveen: how many propose codes, we can issue the e-Firc. its urgent

Raghu: Dear Sir - For the inward remittances that come in i understand that the FIRC is done away with. Now the bankers only provide the Credit bank advise. With this should we still request for eBRC from the bankers. Am asking specifically for software exports.

Manpreet: Dear sir, I am exporting since 2007 and I do not submit firc/shipping bill/BL to bank since then now my banker is asking me to submit these documents for all previous shipping made. Do I need to do that??

Kannu : Can FIRC be endorsed

Jain Jolly: Hi Sir, WE are into export of services (Market REsearch services) and we fall under the category of 3% rebate as per para 9.51(i) & (ii) of the foreign trade policy. as per RBI code of exports in services, we ahve the code P1007. we are into business for the last 7 years. now i want to apply for this rebate for the past 7 years. my questions are: 1. am i eligible to get rebate for the last 7 years? 2. i approached the bank for the formalites and they said taht softex and Ebrc will not be applicable. so what is the procedure 3. i asked them if FIRC can be issued by them, to which they said that it will not be issued for the current year (2016-17) but can be issued for the last year. they can only issue a remitance advice for this year. 4. i really want to know, the right way to get these refund. is it through FIRC, EBRC, or some other forms, or what means? Regauesting your help here. Thanks Jain Jolly

G.Singh: Hello Sir, I just want to know that as mentioned its not necessary to take BRC from Bank. In that case do i still have to submit all documents like FIRC, shipping bill and all other documents to the bank so that BRC is available on DGFT website. Please help me regarding this as i am new into this business and i have not submitted any documents to the bank. Should i submit the documents for getting BRC? Looking forward for help. Thanks

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