How to differentiate between BRC and FIRC?

I have been receiving many enquiries asking the difference between BRC and FIRC - Bank Realization Certificate and Foreign Inward Remittance certificate. Some asked, what is BRC and others what is FIRC and difference between BRC and FIRC.

Strictly speaking, both are certificate issued by authorized dealer bank to the customers for receiving amount from foreign countries. Let us discuss in detail:

FIRC is issued against any receipt of amount from foreign countries by a bank to their customers. It can be an advance payment against export proceeds, ocean or airfreight, or remuneration or wages under consultancy charges or for any other reasons.

BRC means Bank Realization Certificate issued by bank to their customers against any specific documents. Normally BRC is issued by a bank to their customers who has been in to export business on each shipment of export proceeds. Various export promotion agencies provide incentives, import duty exemptions and other financial assistance to the exporters. These agencies requires to be submitted export proof by exporters to claim such benefits. One of the proof of exports other than export promotion copy of shipping bill (EP copy of shipping bill), Mate Receipt issued by the carrier and/or customs authorized ARE-1 (for goods under central excise only) is Bank Realization Certificate BRC issued by the respective bank who received foreign amount for exporters.

So once after receiving the amount under each shipment, the exporter approaches their bank and submits the proof of exports and FIRC details (Foreign Inward Remittance Certificate) to obtain a BRC under each shipment. This Bank Realization Certificate BRC is submitted with the various authorities as proof of shipment or proof of exports along with customs legal document of EP copy of shipping Bill, Mate receipt issued by carrier of goods and central excise document of ARE – 1 where ever applicable.

Here you need to observe that an FIRC can be obtained whenever you receives amount from foreign country. It can be an advance amount against exports or services.

Before introducing EDI system (Electronic Data Interchange), a GR form has to be filed by exporters along with shipping bill to customs for completion of export procedures and formalities. The copy of shipping bill is impressed on GR form. GR form is a document of export to be submitted with RBI to regulate foreign inward remittance. In order to get BRC, exporter has to submit a copy of GR form to prove the account under which they had received foreign amount.

At present, there is no FIRC or BRC required for government export promotion agencies like DGFT or Customs department where in EDI facility available, as the said foreign receipt is directly linked electronically with customs and DGFT through the authorized dealer bank of exporters.

So, the exporters need not obtain FIRC (foreign inward remittance certificate) or BRC (Bank realization certificate) from their bank to claim any export benefits from DGFT or customs department.