In the competition of India's export market, government incentives like duty drawbacks, GST refunds, and schemes such as RODTEP or ROSCTL play a key role in maintaining profitability.
Central to these allegations is the eBRC Electronic Bank Realisation Certificate, a key certificate validating foreign export payments. Operating under the Directorate General of Foreign Trade (DGFT) portal, the eBRC is legal evidence of payment, facilitating exporters to reap financial benefits under India's Foreign Trade Policy as well as tax regimes.
The eBRC process often generates roadblocks. Merging manual procedures with bank delays and stringent compliance deadlines generates operational inefficiencies that result in delayed incentive payments and potential penalties. eBRC automation software allows organizations to transform their process into a strategic advantage.
Covoro, which used to be EximHero, provides a revolutionary solution with its eBRC generation automation. The platform ensures smooth compliance processes as well as faster access to funds. Covoro's intelligent eBRC automation solution enhances business processes by minimizing processing time and mistakes and easily facilitating financial benefits.
In this blog, the Role of eBRC in exports, the problems of the exporter, and how Covoro's AI platform transforms the process for the contemporary exporter are discussed.
The Role of eBRC in Exports
The Bank Realization Certificate has now been digitized into an electronic form called the eBRC. The main difference between eBRC and BRC is that banks issue the eBRC as an electronic certificate in the DGFT portal. Whereas the BRC is still a paper certificate, the digital nature of the eBRC yields greater Efficiency and compatibility with modern trade systems.
Banks provide this document to establish foreign currency payment for export receipts as per the Foreign Exchange Management Act (FEMA). Exporters require this document to avail of benefits such as duty drawbacks and other schemes like MEIS and RODTEP, along with GST refunds.
The eBRC prevents non-compliance with Reserve Bank of India (RBI) and DGFT eBRC regulations by correlating inward remittances with particular export transactions. Nevertheless, it may consume much time and resources when done manually.
This is where eBRC automation software comes into its own. With digital and automated capture of data from shipping bills, invoices, and bank remittances, it facilitates careful data alignment, essential to prevent compliance problems during audits by DGFT, RBI, or GST authorities.
Without a valid eBRC, financial benefits are not accessible to exporters, keeping working capital locked up. Exporters benefit from accuracy, quicker turnaround, and full compliance through automation software for eBRC, which also does away with the potential for delays and rejection of incentive claims.
Challenges in eBRC Management
Despite its online nature, the development and processing of eBRCs is not straightforward. It entails multiple stakeholders, such as exporters, banks, and the DGFT portal, each having the potential to form a chokepoint. The following are the key concerns:
1. Manual Data Matching: Exporters have to manually match Inward Remittance Messages (IRMs) filed by banks on the DGFT portal with the corresponding shipping bills or invoices. Any difference in details, like invoice numbers or payment amounts, can render eBRC generation impossible.
2. Bank Delays: Banks are slow in uploading IRMs onto the DGFT portal, which delays the eBRC process. Exporters with multiple banks face additional complexity when seeking payment confirmations across institutions.
3. Deadlines: DGFT recommends receiving eBRCs six months after making export payments. Missing this timeframe puts incentives at risk or levies compliance fees, and exporters have to work quickly under duress.
4. Error-Ridden Processes: Hand entry of documents and reconciliation is prone to errors. Discrepancies between export documents and bank information generate rejected eBRCs, leading to audits or delayed refunds.
5. Resource Drain: Large exporters handle thousands of transactions per month, which consumes enormous staff hours for reconciling data, remittance tracking, and generating eBRCs. This sucks resources away from value-added activities to redundant paperwork.
These problems have a ripple effect: postponed rewards, locked-up funds, and higher cost of operations, as well as increased compliance hazards. For export managers and CFOs, inept eBRC management can put financial planning and growth in jeopardy.
The Covoro Solution: Automating eBRC for Efficiency
EximHero's Covoro platform addresses these pain points by automating the entire eBRC lifecycle. As India's leading end-to-end Export-Import (EXIM) operations platform, Covoro leverages artificial intelligence, bank integrations, and DGFT-compliant workflows to streamline compliance and accelerate incentive claims.
How Covoro Works
Covoro works with authorized banks to access IRM in eBRC and Outward Remittance Messages (ORMs) in real-time. Exporters upload their shipping bills and invoices to the platform. Covoro's AI-driven system automatically matches remittances to export documents.
The platform generates eBRC self-certification directly on the DGFT portal, which removes manual steps and physical paperwork.
Covoro fully supports DGFT's self-certification process and connects with ICEGATE for smooth filings. Its smart workflows ensure adherence to DGFT and RBI rules, such as using the correct purpose codes (e.g., P101 for exports, P1505 for deemed exports).
The platform also links with GSTN, allowing eBRC data to go directly into GST refund claims or subsidy applications.
The Automation Journey
Covoro's EXIM automation roadmap turns manual procedures into an entirely digital ecosystem:
Manual (1.0): Exporters physically retrieve BRCs from banks and forward them to DGFT, a laborious and error-prone process.
RPA-Assisted (2.0): Some manual procedures are partially automated with still partial human intervention.
Fully Automated (3.0): Covoro's AI reads data from invoices, shipping bills, and bills of lading via Optical Character Recognition (OCR). It maps this to bank feeds, creates eBRCs, and files them with DGFT, all without any manual intervention.
This 3.0 ecosystem does away with the need to visit banks or maintain hard copies. Created eBRCs are digitally signed, saved on the DGFT portal, and available for instant download or integration into downstream processes.
Key Features of Covoro
Covoro's comprehensive feature set streamlines eBRC management and increases overall export compliance:
Dynamic eBRC Generation: Exporters input shipment and invoice information, and Covoro populates DGFT's eBRC form automatically. The system electronically submits eBRCs, eliminating hard copies or bank trips.
Real-Time Bank Integration: Covoro integrates with banks in real time to retrieve IRMs and ORMs in eBRC. Payments are matched with invoices in real-time, and fast eBRC generation is made possible. The system provides clubbing multiple remittances according to DGFT guidelines.
AI-Driven Data Extraction: Through OCR and machine learning, Covoro unlocks data from intricate documents such as invoices, bills of lading, and shipping bills with remarkable accuracy. For instance, a client processed 500 pages of export data within less than 40 minutes, as opposed to weeks, through manual handling.
Compliance Automation: Covoro's rule engine supports the automation of compliance with DGFT, RBI, and GST regulations. It continues to support schemes like RODTEP, ROSCTL, duty drawback, and SEZ filing, using correct eBRC purpose codes automatically and bringing forward deadlines.
Centralized Document Repository: All export documents, eBRCs, IRMs, certificates of origin, and SOFTEX forms are stored in an electronic vault, which ensures they are audit-ready and readily accessible.
Real-Time Dashboards: Dynamic dashboards track eBRC status, pending actions, and incentives claimed. Exporters quickly observe deadlines, for example, the 180-day rule for submission of eBRC.
Proactive Alerts: Covoro notifies of important actions, including unmatched remittances or near-miss eBRC deadlines, avoiding the risk of lost opportunities.
Business Benefits of Covoro
Implementing Covoro yields measurable benefits to exporters:
Enhanced Cash Flow: Automated eBRCs enable faster incentive claims, releasing funds for growth or operations. Refunds and subsidies are obtained weeks ahead of manual processes.
Cost Savings: Automating process tasks reduces labor costs and eliminates penalties due to mistakes. Clients save ₹50 lakh annually with streamlined workflows, reports say.
Error-Free Compliance: AI-based matching ensures eBRCs and export documents are consistent, limiting rejections and audit risk. Covoro's compliance with globalization, DGFT, and GSTN eases regulatory scrutiny.
Unified Platform: Covoro integrates invoicing, shipping, remittance tracking, and compliance onto a single interface, minimizing spreadsheets or multiple EBRC portals' reliance on them.
Scalable Operations: The system processes large volumes of transactions with ease, accommodating growing exporters without adding more personnel. Covoro processes more than 150 million e-invoices every year for 12,000+ global customers.
Audit-Ready Security: ISO-27001 compliant and GDPR compliant, Covoro maintains data security and complete compatibility with DGFT and ICEGATE. Exporters are able to present records safely during audits.
Case Study: Textile Exporter's Transformation
One of India's top textile exporters was hit hard by eBRC delays caused by the reconciliation of thousands of monthly transactions manually. Teams wasted days matching bank remittances with shipping bills, finding errors that held up incentive claims.
The exporter experienced instant improvements after implementing Covoro. The platform's AI processed 600 pages of invoice and shipping data in 25 minutes at 92% accuracy, versus weeks spent on manual processing.
eBRCs were auto-generated, and incentive claims were submitted 20 days earlier than previously. Improved cash flow and minimized risks of non-compliance resulted in all the documents being deposited in a secure vault that was ready for audits.
Conclusion: Transform Your Export Operations
With the fast-evolving landscape of exports, Compliance Efficiency is non-negotiable. The eBRC is the gateway to availing government export incentives of India, but manual intervention causes delay, errors, and foregone business opportunities. Covoro's automation using AI eradicates these chokepoints, turning an elaborate multi-step process into a seamless one-click operation.
With Covoro, exporters create eBRCs directly and immediately, stay in compliance, and earn incentives earlier, freeing up resources for strategic growth. Ready to make export compliance easy? Discover how Covoro can transform your business.
Call to Action: Contact the Covoro team for a personalized demo and see how our platform can save time, reduce costs, and have you audit-ready. Check out our site to learn more about our AI-powered EXIM solutions.
About EximHero (Covoro)
Covoro, previously EximHero, is a software export compliance platform driven by AI created by Perennial Systems. Supported by more than 12,000 exporters across the world, Covoro connects to banks, DGFT, ICEGATE, and GSTN to mechanize trade documentation.
From eBRC creation to RODTEP, duty drawbacks, and SEZ submissions, Covoro provides 100% compliance with unparalleled efficiency. ISO-27001 certified, the platform saves customers ₹50 lakh a year on average and processes information 20× quicker. Check out our website or ask for a demo to learn more about Covoro's revolutionary potential.
FAQ
The Electronic Bank Realisation Certificate (eBRC) is an electronic document given by banks through the DGFT portal that certifies that an exporter has received foreign exchange payment for exports. It is required to claim incentives such as duty drawback, RODTEP, and GST refunds and to follow FEMA, DGFT, and RBI rules.
After receiving export payment, the bank uploads the details to the DGFT portal. Exporters can then log in using their IEC credentials to access and download the eBRC. Using eBRC automation software simplifies this process by syncing bank data automatically and reducing manual errors.
To generate an eBRC, the exporter must receive payment in foreign currency for an export shipment. The authorized bank then uploads the payment details to the DGFT portal. Once uploaded, the eBRC is automatically generated and linked to the exporter's IEC profile.
Exporters can log in to the DGFT portal using their IEC credentials. Under the "eBRC" section, they can view, download, or print the eBRC once the bank has submitted the relevant transaction data.
eBRC stands for Electronic Bank Realisation Certificate. It is digital proof that payment has been received in foreign currency for an export transaction.
eBRC is a digital certificate issued by banks through the DGFT portal, confirming that an exporter has received payment for exported goods or services. It is mandatory to claim export incentives and ensure regulatory compliance.
To cancel an eBRC, the exporter must contact the bank that issued it, providing valid reasons for cancellation. The bank will verify the request and update or revoke the eBRC on the DGFT portal accordingly.
eBRC is used to claim export-related government incentives such as duty drawback, RODTEP, ROSCTL, and GST refunds. It also ensures compliance with DGFT, RBI, and FEMA regulations.
Once your bank confirms the receipt of the foreign payment and uploads the transaction details to the DGFT portal, you can log in using your IEC credentials to download the e-BRC certificate directly from the system.
The BRC (or its digital version, eBRC) is mandatory for exporters who wish to claim government benefits or complete post-export compliance. While not required at the time of shipment, it is essential to prove payment realization.
Banks issue FIRC (Foreign Inward Remittance Certificate) for any foreign currency inflow, including exports, services, or investments. eBRC, however, is specific to export transactions and is generated through the DGFT portal. While FIRC confirms remittance, eBRC links it directly to export documents and is necessary for claiming export incentives.
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