Q.1 Where I can find detailed step by step instruction on filing an application?
Ans. Please check HELP file for details on DGFT website
Q.2 How do I know if a BRC is eBRC or manual BRC?
Ans. From 17.08.2012, banks transmit all BRC data electronically to DGFT. Such BRC is called ‘e-BRC’.
BRC issued in physical forms by bank before 17.08.2012 is termed manual BRCs.
You can check the status of your BRC on DGFT website( dgft.gov.in)
Note: All BRCs irrespective of date of realization with BRC date on or after 17.08.2012 are eBRCs
Q.3 If my BRC is ‘eBRC’, is it mandatory for the Shipping Bills to be EDI?
Ans. No.
Even non-EDI Shipping Bills can be linked to eBRC.
Q.4 Once I have added Shipping bill to the repository, do I have to add it again?
Ans. No.
Once the Shipping Bill is added to the Repository, it is available for utilization.
You can view it by going to the shipping bill repository.
Q.5 Can I use my Shipping bill in multiple Schemes?
Ans. Yes.
However, you are not allowed to use it in the same scheme twice.
Example. If you have used your shipping bill for DEPB scheme, you cannot claim benefit again under the DEPB scheme. However, you can use the same shipping bill in any other eligible scheme.
Q.6 My shipping bill has multiple products, each eligible under different scheme.
For claiming benefit under Various schemes, I need separate realization value for each product. However, I see a problem here as banks report only one consolidated realization value for each Shipping Bill( even if there are more than one item on a single shipping bill ).
How this value is to be distributed against multiple products in Shipping Bill for the purpose of making applications under various schemes?
Ans. Suppose a Shipping Bill contains 3 export products A,B and C with FOB values US $40, US $60 and US $80 respectively (total FOB US $180/-).
Now, if the total NFE realised as per e-BRC is US$90/-, then by pro-rata calculation the benefits on 3 products i.e. A, B and C will be calculated on 20 US$, 30 US$ and 40 US$ respectively.
Q.7 Who will enter Commission, Insurance, and Freight in the application?
Ans. Exporter will enter these details.
BRC details available in the DGFT server do not contain values of Commission, Insurance and Freight.
These are to be entered by the exporters while making applications under various DGFT schemes.
Q.8 What happens if banks have reported BRC which is less than total realized value?
Ans. Exporters must ensure that the ‘e-BRC’ value reported by bank reflects total realized value.
If a bank has erroneously transmitted less than total realized value after deducting components like Freight, Insurance or Commission, exporters should get it corrected from the bank.
Q.9 Shortfall in realization (case 1–Shipping bill contains only one product)
I realized less foreign exchange compared to the FOB value declared on the shipping bill.
How this shortfall is to be adjusted for the purpose of calculating entitlement under various schemes?
Ans. In case of shortfall in foreign exchange realization with respect to the shipping bill FOB value, pro rata distribution of realized foreign exchange against each export item will be made by the system itself. This can be easily understood through the following illustrations:
- Illustration 1 (Single Export Product) – If foreign exchange realization as per e-BRC is US $ 100/- and FOB value mentioned on the Shipping Bill is US$ 80/- , the benefit would be granted on US $ 80/-.
- Illustration 2 (Single Export Product) – If foreign exchange realization as per e-BRC is US $ 100/- and FOB value as mentioned on the Shipping Bill is US $ 120/- , then FTP benefits would be granted on US $ 100/-.
In case of multiple products on a shipping bill, the FOB
Q.10 Shortfall in realization (case 2–Shipping bill contains more than one product)
How this shortfall is to be adjusted for the purpose of calculating entitlement under various schemes?
Ans. In case of multiple products on a shipping bill, the FOB value will be proportionately distributed to its product list and multiplication factor applied on it.
This can be easily understood through the following illustration:
Suppose a Shipping Bill contains 3 export products A,B and C with FOB values US $40, US $60 and US $80 respectively (total FOB US $180/-).
Now, if the total NFE realised as per e-BRC is US$90/-, then by pro-rata calculation the benefits on 3 products i.e. A, B and C will be calculated on 20 US$, 30 US$ and 40 US$ respectively.
Q.11 What is Multiplication Factor?
Ans. Multiplication Factor (M.F) defines the ratio between the FOB value actually realized and FOB value mentioned on the Shipping Bill.
Multiplication Factor M=
FOB value actually realized in Rs.
Shipping Bill FOB in Rs.
Value of M is to be restricted to actual value or 1 whichever is less. It will be rounded off to six decimal places.
Note: Exchange rate to be taken as on Shipping bill date
Q.12 What is Net FOB( FOB excluding commission)?
How is Net FOB value calculated from the value realized in foreign Currency?
Ans. Net FOB is calculated by excluding commission from the FOB value in Foreign Currency.
Net FOB parameter is used to factor correct amount of commission allowable under various schemes.
Based on whether the foreign exchange realization is in CIF, &F or FOB; net FB is calculated as follows:
Following table gives details?
| S | Type of realized value | Net FOB value actually realized equals |
| 1 | If realized value is in CIF | Realized value –(Freight + Insurance+ Commission) |
| 2 | If realized value is in C&F | Realized value –(Freight+Commission) |
| 3 | If realized value is in FOB | Realized value – Commission |
Q.13 What values of Freight, Insurance and Commission are to be files in the application
Ans. Freight, Insurance and Commission values should be actual transaction values.
Q.14 How Commission is factored under various schemes?
Ans. Commission is treated in 2 ways in FTP schemes. Following Para give details of calculation:
A-DEPB and Chapter 3 schemes(ANF 3C and ANF 4G)
For the purpose of calculating entitlement, commission amount is to be restricted to actual value or 12.5% of net FOB value realized; whichever is less.
The allowed commission (item wise ) will be calculated as per the formula:
CT= (P/T)*CP
CT-allowed commission (item wise )
P- Assessed FOB value of item in INR as mentioned in SB
T- Total SB FOB value in INR
CP-Total commission on SB in Foreign Currency
B-Advance Authorization and EPCG scheme(ANF 4D, ANF 4F, ANF 4H and ANF 5B)
For the purpose of calculating entitlement, commission amount is to be excluded.
Q.15 How is Realized FOB including commission calculated for DEPB and Chapter 3 schemes?
Ans. Item wise Realized FOB including commission is calculated as
FOBItemFC = [FOBTotalFC * M +CT]
FOBItemFC – Item wise Realized FOB including commission
FOBTotalFC- FOB Value in Foreign Currency
M-Multiplication Factor
CT-Allowable commission(item wise )
=( Assessed FOB value of item in INR as mentioned in SB /Total SB value in INR) * FOB Value in Foreign Currency * MF + Allowable commission(item wise )
Note: Exchange rate applicable is as on LEO ( Let Export Order) Date
Q.16 I had an application pending for submission as on 28.09.2012 for DEPB/FMS/MLFPS/VKGUY but with the resumption of the system on 10.10.2012 the shipping bills attached with earlier applications are not visible
Ans. A message was displayed on DGFT website advising the applicants to either submit or delete shipping bills from DEPB/Chapter 3 schemes themselves.
Such shipping bills which were not deleted by the exporters themselves have been deleted by the system. If they are EDI shipping bills, their status has been made available. All Non-EDI shipping bills may be first attached to the shipping bill repository before they can be utilized in any of the schemes
Q.17 What precautions should be taken by the applicant at the time of making a Licensing Application?
Ans. User must ensure that his:
1. BRC details are correct
2. Whenever manual data is updated same is entered correctly. Commission, Insurance and Freight is properly updated against each BRC.
Q.18 How can I take a print out of eBRC for my use?
Ans. We are developing system for allowing printing of eBRCs.
A method also is being worked out for sharing of e-BRC is with different agencies.
Q.19 Sometimes, I realize forex in parts, necessitating the need for issuance of more than one BRC. Is it allowed?
Ans. Yes. DGFT system can process multiple BRCs issued against a Shipping Bill. Exporter should apply after receiving full payment.
Q.20 Can I view all information filed by me on a single screen?
Ans. Yes
Q.21 Should banks deduct commission from the full realized value?
Ans. No.
Banks must mention full amount realized. You must approach banks for restoration of full value.
Q. 21A (i)My buyer released the full amount of $100 to the foreign bank but the foreign bank deducts $10 as its charges and remits $ 90 to Indian bank. What is the correct realization value that should be mentioned by the Indian Bank while issuing the eBRC ?
Ans. $90
As this is the money actually received in India
Q.22 The e-BRC has been uploaded by the bank and is visible and available on the website but when I go to the Shipping Bill to attach BRC, it says “No Record Found”.
Ans. Please check the Shipping Bill Number, Shipping Bill Date and Port Code. It should be identical in BRC as well as in Shipping Bill to enable automatic matching. Even a small difference may result in Non-Selection of BRC details.
Example:
Shipping Bill No. on shipping bill is 0790173 and on BRC it is NSA1 0790173.
Note: eBRCs issued prior to 17.08.2012 are not eligible for auto attach to shipping bills. Their details need to be entered manually by the exporter for claim of benefits. Treatment of such eBRC will be like manual BRC.
However, to facilitate the data entry, BRC’s between 01.04.2012 to 16.08.2012 reported by the banks will be attached with the Shipping Bill with the status “Manual”.
Q.23 I have EDI Shipping Bill for Drawbacks/Free Shipping Bills. Same I am unable to link to shipping bill repository from customs database. When I enter the same manually in Repository, it shows as Shipping Bill is manually entered in the application.
Ans. Shipping Bill data from Drawback and Free Shipping Bill are currently not being exchanged with customs, hence they need to be entered manually.
Since Shipping bills are entered manually for DGFT purposes, their treatment will be like a manual/non-EDI shipping bill.
Q.24 I have an EDI Shipping Bill on which I have claimed DEPB. Now I want to claim chapter 3 benefit on that but it is not showing that in customs link.
Ans. You may enter the Shipping Bill details manually and claim chapter 3 benefits.
Q.25 How to club exports from different ports?
Ans.
| DEPB | Clubbing of ports not allowed |
| Chapter3 | Clubbing allowed only in case of EDI Ports |
| DES & EPCG | Clubbing Port wise is not required as Shipping Bills are clubbed File No. wise and License wise |
Q.26 Banks claim to have uploaded the data but this is not to be seen in the DGFT website.
Ans. Data w.r.t. eBRC is visible on real time basis at the DGFT website. Banks get an automated message on successful upload of eBRC onto DGFT website.
After this data can be immediately viewed by the exporter at the DGFT website.
Q.27 We are unable to add the details of commission, freight and insurance.
Ans. Check if you have registered with DGFT site.
Commission, Freight and Insurance data can be updated only by the registered ECOM user of DGFT through ECOM site
Q.28 I am unable to fetch data from the repository.
Ans. Details from repository for various schemes are selected on the basis of certain predefined criteria like scheme applicability, port, date of exports, shipping bill date etc. as the case may be. Any mismatch will result in non selection of the data from repository.
Q.29 The system takes the lesser of the FOB value indicated in the shipping bill or the e-BRC, though shipping bill details of freight and insurance are approximations.
Ans. Net realization value is calculated after deducting freight, insurance and commission from the value indicated in the eBRC. New realization value plus commission is then compared with the shipping bill value and multiplication factor for items shipping bill is calculated.( These are explained in the eBRC FAQ on DGFT site)
Q.30 What exchange rate to adopt for calculating the freight and insurance if the data is available in rupees?
Ans. INR
Q.31 Can I use the same shipping bill for discharge of export obligation against two or more advance licenses?
Ans. Yes
Q.32 What to do when the export obligation is in another currency?
Ans. It is allowed. Exchange rate will be as on LEO date of the shipping bill.
Q.33 Will there be any random verification mechanism to ensure exporters mention the actual and correct freight insurance, etc?
Ans. As is the practice for other documents, in random cases, exporters may be requested to produce supporting documents.
Q.34 I have already claimed DEPB on an EDI shipping bill earlier now I want to claim other benefit on the same shipping bill but I am unable to load already utilized EDI shipping bill?
Ans. From the Administration menu Select the option “Link already utilized EDI DEPB Shipping Bill to Repository” and Select the Shipping Bill to be linked. For further details refer to Help (Q11 under heading How to?).
Q.35 I have added a Shipping Bill manually to the repository and claimed/not claimed a benefit. Now the shipping bill has been received in EDI mode from Customs but I am unable to add the same?
Ans. From the Administration menu Select the option “Replace manually entered Shipping Bill with EDI Shipping Bill” and Select the Shipping Bill to be linked. For further details refer to Help (Q12 under heading How to?).
we have received a single payment against our invoice and eBRc has been realized by the bank, as our SB contains 2 DFIA file numbers we have requested the bank to bifurcate the BRC but they are not ready to do so.
We have explained to them that we are unable to attach BRC in the application as BRC shows FOB realized is higher there sB FOB
please advise any rules for the same so that we can process
Hi,
I was filed the shipping bill for $100, the party has sent the payment but the remittance i received of $90, after the deduction of bank charges or commission of $10. The question is, now what will be the amount of ERBC that will be received? Because $10 have charged by bank. Full received. How much will the EBRC be $100 or $90? If it is $90 then how can i received EBRC of 10% ?
we have to issue BRC between 2008 & 2013, whether we can issue manually BRC in APPENDIX 22A-FORM 1
Hi
The invoice we raised was for $100, the party has sent the payment by deducting 10% withholding tax on the payment of $90, and the certificate of holding tax of $10 has been given. The question is, now what will be the amount of ERBC that will be received? Because $10 have already claimed my ITR. Full received. How much will the EBRC be $100 or $90? If it is $90 then the 10% which is received or claimed in that ITR, why EBRC will not be available?
We are exporting castings. Our CC account is in citibank based on RBI instructions if there is 2 accounts one account should be closed. Based on that our account closed by citibank. Know we want to get BRC but the bank is telling we are not able to give e BRC. Please clarify us what is the procedure to get E Brc if account closed.