In recent developments concerning India’s export incentive framework, a crucial update has emerged that all exporters must take note of: the Electronic Bank Realisation Certificate (e-BRC) is now mandatory for RoDTEP (Remission of Duties and Taxes on Exported Products) claims. This change is more than just a regulatory update—it’s a significant step toward digitization, transparency, and accountability in the export ecosystem.

Understanding RoDTEP

The RoDTEP scheme, launched by the Government of India in January 2021, aims to refund embedded taxes and duties that are not rebated through other schemes. These include central and state levies such as VAT on fuel, mandi tax, and electricity duties that exporters previously had to absorb as costs.

To ensure that only genuine export transactions receive these rebates, the government requires proof that the foreign exchange from an export has actually been realized in India. This is where the e-BRC comes in.

What is e-BRC?

The Electronic Bank Realisation Certificate (e-BRC) is a digital certificate issued by banks on the DGFT (Directorate General of Foreign Trade) portal, confirming that export proceeds have been realized by the exporter in India. It serves as official evidence of payment for exported goods or services.

Why e-BRC is Now Mandatory for RoDTEP Claims

Here are the key reasons behind making e-BRC mandatory for claiming RoDTEP benefits:

1. Verification of Genuine Exports

By requiring e-BRCs, the government can ensure that RoDTEP benefits are only extended to exports for which payment has actually been received. This prevents misuse of the scheme and promotes fair competition.

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2. Data Synchronization and Transparency

e-BRC integrates banking data with customs and DGFT systems. This synchronization eliminates discrepancies between declared export values and actual realized payments, leading to more accurate claim processing.

3. Faster Processing of Claims

With automated verification through e-BRC, the processing time for RoDTEP claims can be significantly reduced. This means exporters can receive benefits quicker, improving their cash flow.

4. Compliance with WTO Norms

RoDTEP was designed to be WTO-compliant by avoiding direct subsidies. Requiring an e-BRC adds another layer of compliance by ensuring that only real exports, verified by financial transactions, are incentivized.

5. Curbing Tax Leakage and Fraud

Mandatory e-BRC helps plug loopholes that previously allowed for fraudulent claims based on paper exports or under-/over-invoicing.

Implications for Exporters

Exporters now need to:

Ensure timely submission of export documents to their banks for BRC issuance.

Coordinate with their banks to make sure e-BRCs are uploaded to the DGFT portal.

Check their e-BRC status before filing for RoDTEP claims on the ICEGATE portal.

Keep accurate records to avoid delays in benefit disbursement.

Failure to comply could result in rejection or delay of RoDTEP claims, impacting business liquidity.

Conclusion

The mandatory requirement of e-BRC for RoDTEP claims is a positive step toward a more robust and transparent export incentive system. While it may introduce some additional compliance steps for exporters, it also ensures the legitimacy of claims and faster benefit processing.Want to generate your e-BRC online? Try our service now!

Exporters should proactively adapt to this change, streamline their documentation processes, and work closely with banks and customs to ensure timely and accurate submissions.