Circular No.ES/320 /2016-17 March 02, 2017
To: Members of the Council
Sub: Acceptance of e-BRC of DGFT towards proof of realization of sale proceeds for exports with LEO date upto 31.03.2014 under drawback scheme
Dear Member,
CBEC has issued Circular No. 6/2017-Customs dated 28.02.2017 on the above subject.
In this connection, attention is invited to Board’s Circular No. 5/2009-Customs dated 2.2.2009 which prescribes Bank Realization Certificate (BRC) as one of the documents that may be submitted to Customs by the exporters as proof of realization of sale proceeds for exports. Further, for exports with LEO date from 01.04.2014 onwards, an electronic system of reconciliation of sale proceeds (RBI-BRC module) is made functional by DG (Systems) in coordination with Reserve Bank of India (RBI), which has been dealt in Instruction No. 609/59/2012-DBK dated 27.11.2015.
In this regard, a difficulty has been highlighted by field formations and members of trade that for exports with LEO date 12.08.2012 onwards till 31.03.2014, DGFT’s e-BRC (which is also verifiable from DGFT website) is not being accepted and negative statement from statutory auditor or AD bank is insisted which adds to transaction cost. Non-acceptance of e-BRC of DGFT by field formations is due to fact that it contains “realized value” details but does not contain details of commission, freight, insurance etc. which are often relevant for drawback purpose.
Now, the Board has decided that for exports with LEO dates 12.08.2012 onwards till 31.03.2014, DGFT’s e-BRC would be accepted, except in case of specific intelligence or information of misuse. This shall be subject to appropriate declaration by the exporter on back of DGFT e-BRC. Format of the said declaration is enclosed to the Circular No. 6/2017.
Members may kindly make note of the same.
Thanking you,
V. ANIL KUMAR
Executive Director
