The Complete Guide to e-BRC: Use Cases, Purpose Codes, and Self-Certification Generation

For Indian exporters, the administrative burden of proving payment realization has long been a major bottleneck. Enter the e-BRC (Electronic Bank Realization Certificate), a critical digital document that validates the receipt of payment for export.

With the Directorate General of Foreign Trade (DGFT) switching to a self-certification model, the workflow has become smoother, but also more technical. In this guide, we will explain what e-BRC is, how it works, and how to generate it efficiently.

What is e-BRC?

An Electronic Bank Realization Certificate (e-BRC) is a digital certificate that specifies the details of an inward forex remittance. It serves as primary proof that payment has been received for exports made.

Exporters no longer need to visit banks or pay fees to obtain an e-BRC under the new process. Instead, banks send Inward Remittance Messages (IRMs) directly to the DGFT, and exporters self-certify their e-BRCs by cross-referencing these IRMs with their trade documents on the DGFT portal.

Why is e-BRC Critical? (Use Cases)

The e-BRC is not just a receipt; it is a compliance necessity.

1. Claiming Foreign Trade Policy (FTP) Benefits: You cannot avail of export incentives without proof of realization.
2. GST Refunds: It acts as evidence for tax exemptions and refunds under GST provisions.
3. Audit & Verification: It allows digital exchange of data with regulatory agencies like RBI, CBDT, and GSTN, reducing the need for post-issue physical audits.

The Technical Core: Matching IRMs and Shipping Bills

One of the most powerful features of the new DGFT e-BRC system is the ability to match payments to documentation. This process is heavily dependent on data accuracy.

Tip: Before starting, ensure you understand your underlying trade data. For a deep dive into the source documents, read our guide on Shipping Bill Explained.

The "Many-to-Many" Adjustment Logic

Exporters frequently struggle with how to handle partial payments or bulk receipts. The manual explains this flexibility:

• Multiple IRMs against One e-BRC: You can club multiple Inward Remittance Messages (IRMs) to generate a single e-BRC, provided they are in the same currency.
• One Shipping Bill against Multiple e-BRCs: A single Shipping Bill can be utilized across two or more e-BRCs, even across different banks.

This means that if you receive a single IRM (bulk payment) for five different invoices, you can split it across those five transactions. In contrast, if you receive five small partial payments for one large shipment, you can combine those IRMs to close a single Shipping Bill.

For importers or those dealing with inward goods, understanding the flip side of trade data is equally important. Check out our Bill of Entry Extraction Tool to manage your import data efficiently.

Decoding Purpose Codes

When banks upload IRMs, they label them with Purpose Codes. These codes identify the nature of the transaction (for example, export of goods vs. services) and ensure compliance with RBI regulations.

Choosing the correct purpose code is required for e-BRC generation. Here are the main rules defined in the manual:

• P0103 (Advance Payment): This code is unique. It can be used standalone or clubbed with almost any other purpose code (except restricted ones like P0101).
  • Constraint: If using P0103, the shipping bill/invoice date must be after the remittance date.
• IT Services Specifics: For IT service exports, only specific codes are applicable: P0802, P0803, P0807, and P0103.
• General Rule: No two different purpose codes can be clubbed together to generate a single e-BRC, unless one of them is P0103 (Advance Payment).

Step-by-Step: How to Generate e-BRC on DGFT

The new self-certification workflow removes the bank from the final step. Here is how you do it:

1. Access the IRM Repository

Log in to the DGFT website and navigate to Services > e-BRC > IRM/ORM Repository. Here, you can view the remittance details uploaded by your bank.

2. Initiate Generation

Go to Generate e-BRC. You will be asked to select the type of export:

• Physical Export of Goods
• Deemed Exports
• Export of Services (IT or Non-IT).

3. Attach IRMs

Enter the IRM Number. The system will auto-populate details like Bank Name, Currency, and Purpose Code.

• Note: You can add multiple IRMs here if you are clubbing payments.

4. Link Shipping Bills / Invoices

Once the payment (IRM) is selected, you must link the trade document.

• For Goods: Enter the Shipping Bill Number, Date, and Port Code. The system will calculate the realized value.
• For Services: Enter the Invoice Number and SAC Code.
  • Crucial Check: For Service Exports, you can only attach invoices where the SAC codes match the service description.

5. Self-Declaration

Analyze the data. The system calculates the Net Realized Value by deducting the insurance, freight, and discount values from the FOB value. Tick the box indicating compliance with the Foreign Trade Policy and submit.

Streamlining Your Trade Data

Generating e-BRC requires precise matching of Shipping Bill data with Bank IRMs. Errors here can lead to rejected claims.

• Automate Your Data: Manually tracking every Shipping Bill and Bill of Entry is prone to error. Use the Sepfust ICEGATE Data Extractor to pull accurate data directly from source systems.
• Understand the Docs: If you are new to trade documentation, read our primer on What is a Bill of Entry to understand the import side of the ledger, which often mirrors export compliance structures.

Conclusion & Next Steps

The transition to self-certified e-BRC gives exporters more power and responsibility. Understanding the "many-to-many" linking logic, as well as the significance of Purpose Codes, will help you ensure that your GST refunds and export incentives are processed quickly.

Are you ready to simplify your export documentation? Do not let manual data entry slow down e-BRC generation. Begin by organizing your trade data using Sepfust's automation tools today.