SEZ BRC and Payment

[VISHAL PATEL]

Dear Sir,

I need guidance for SEZ export, if we are supply goods in the SEZ unit and we are preparing Tax Invoice in INR and also providing them USD invoice for BOE filing. Bill of export (BOE)showing both USD and INR value. We are getting payment in INR through cheque/RTGS, can we get BRC from bank in USD for such case or only in INR we can get BRC. ( SEZ supply under Advance Autho. Lice)

if SEZ BOE is filed in INR only and payment also received in INR then can we get BRC in USD?

Please guide for above both situations.

[YAGAY andSUN]

In our view, you cannot get the BRC in USD until unless you receive payment in USD for supplying of goods to SEZ. Getting remittance in foreign currency (free convertible currency) and filing of Bill of Export with Development Commissioner are two pre-conditions for availing of export incentive under SEZ laws.

[satish padhiyar]

Dear Vishal,

I think you have received a letter from DGFT for BRC in terms of PARA 4.21 (iii). In this case you have contacted to SEZ company to issue Certificate from Banker of SEZ Stating that payment released from Bank Account. No any option available. If payment released in INR.

AI Summary

Foreign currency remittance requirement prevents issuance of foreign currency bank realisation certificates when payments received in domestic currency. A Bank Realisation Certificate in foreign currency cannot be issued unless payment is actually received in foreign currency; if payment is received in domestic currency the BRC will be in domestic currency. Remittance in a freely convertible foreign currency and filing the Bill of Export with the Development Commissioner are preconditions for export incentives under the SEZ framework.