PROOF OF EXPORT WITHOUT BRC

[Vidya Sagar Jha]

We are Merchant Exporter and had exported some Machine in November, 2009, but till date we have not received 100% payment from our Foreign Buyer.

Above machines dispatched under CT-1, so now supplier of the machines regularly asking for Proof of Export Certificate and we are unable to provide because some payment is still due from Buyer. Therefore, we can't get BRC (Bank Realisation Certificate) from Bank.

Confirm that it is possible to get POE without BRC from Divisional office of Central Excise (any rule in central excise manual). Kindly advice accordingly.

[Snehal Kulkarni]

Please note the procedure for CT-1 Export.

Merchant Exprot will issue the CT-1 and forward the same along with Signed ARE-1. The Manufacturer will countersigned the ARE-1, and send the required documents along with the Shipment.

The ARE-1 is address to the CT-1 issuing Authority with whom the bond is executed by the Merchant Exporter. Because of this, the production of the Proof of Export is with the Merchant Exporter and not the manufactuerer.

In your case, please check to whom the ARE-1 is addressed. If it is the AC/DC of the Manufacturer's jurisdiction, then you have to produce the PoE ( usually are without BRC )

If not, then submit the self attested Copies of the PoE to the Manufacturer.

Usually BRC required in the case where the production of PoE are not possible to submit within stupulated time or some documents are missing.

AI Summary

Proof of Export under CT-1: PoE may be accepted without a bank certificate when ARE 1 is addressed locally to the issuing authority. Proof of export under the CT-1 regime depends on the ARE-1 form addressed to the CT-1 issuing authority; the merchant exporter issues CT-1 and forwards ARE-1 which the manufacturer countersigns. The obligation to produce Proof of Export ordinarily rests with the merchant exporter. If ARE-1 is addressed to the authority in the manufacturer's jurisdiction, the manufacturer may produce PoE without a BRC; otherwise self attested PoE copies should be supplied to the manufacturer. BRC is required only when PoE cannot be produced within the stipulated time or documents are missing.