DGFT, Delhi govt sign MoU on e-BRC; exporters to benefit

The Directorate General of Foreign Trade (DGFT), which had recently launched e-BRC, an initiative to reduce transaction cost to exporters, who would not be required to make any request to bank for issuance of bank export and realisation certificate, Wednesday signed an MoU with the Delhi government.   

The Memorandum of understanding (MoU) was signed by Commissioner (Trade & Taxes) Prashant Goyal on behalf of the Government and Addl. DGFT D.K. Singh.  

Delhi became the second state to sign the MoU. Maharashtra was the first state to sign the MoU on April 18 at the time of release of Annual Supplement to the Foreign Trade Policy.

Delhi Exporters Association president Tilak Raj Manaktala and other Members of the Association also attended the event.

Transmission of bank realization against shipping bills has been made mandatory from August 16, 2012.

Already, shipping bills are flowing electronically from customs EDI to DGFT. Now DGFT has tied up with some banks to get the BRC electronically. Both would be matched before export incentives are provided to exporters.

Till now, eighty-one banks have transmitted more than 38 lakhs e-BRC to DGFT. DGFT has requested State Governments to use e-BRC in their efforts to refund VAT and other related tax administration. 

The e-BRC initiative would lead to electronic transmission of foreign exchange realisation certificate from the banks to the DGFT's server on a daily basis. With the launch of this facility, there will be minimum human interface between the Commerce Ministry and the exporting community for grant of benefits.

At present, almost 90 per cent of India's merchandise exports in value terms go through EDI ports. In 2011-12, India's merchandise exports stood at $302 billion, registering a 21 per cent increase over exports of $251 billion in the previous year.