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Acceptance of e-BRC of DGFT towards proof of realization of sale proceeds for exports with LEO date up to 31.03.2014 under drawback scheme.

Circular No.ES/270/2017-18                                                          December 20, 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 up to 31.03.2014 under drawback scheme.

Dear Member,

This is to inform you that Mumbai Customs has issued Public Notice No. 163/2017 dated 14.12.2017 on the above subject.

As you may be aware, Bank Realization Certificate (BRC) is required to be submitted to Customs by the exporters as proof of realization of sale proceeds for exports. Further, for exports with Let Export Order (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 RBI,

In this regard, members of Trade have highlighted the following problems-

  • For exports with LEO date 12.08.2012 onwards till 31.03.2014, DGFT's e-BRC 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 customs 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, 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.

Members may make a note of the above.

Thanking You,

Yours faithfully,

S. BALARAJU
EXECUTIVE DIRECTOR

 

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