What Is BRC?

A Bank Realization Certificate (BRC) is a document issued by the exporter’s bank, certifying that payment against export shipments has been received in foreign exchange. It is essential for:

• Claiming export incentives (RoDTEP, RoSCTL, MEIS)
• DGFT compliances
• GST refunds and audit records

The Issue: Different Remitter and Consignee

Normally, BRC is linked to the Shipping Bill (via EDI system) where:

• Consignee = Receiver of goods (as per Bill of Lading)
• Remitter = Entity sending payment (shown in SWIFT message/FIRC)

When these two are different companies, banks need proper documentation to justify the export transaction and ensure compliance with RBI and FEMA guidelines.

Solution: How to Get BRC in This Case?

Step 1: Inform the Bank in Advance

Notify your bank that the payment will come from a third-party remitter. This avoids confusion or rejection at the time of credit realization.

Step 2: Obtain a “Third-Party Payment Declaration”

Get a signed declaration from the buyer (the actual goods receiver), stating:

• The name and details of the company making the payment
• That the remitter is authorized to pay on their behalf
• The invoice numbers and amount covered
• That there is no third-party commercial interest involved

Step 3: Submit Supporting Documents to Your Bank

Provide the bank with:

• Copy of Invoice & Shipping Bill
• Third-Party Authorization Letter
• SWIFT copy or FIRC showing remitter details

Step 4: Bank Matches the Payment to Shipping Bill

If documentation is complete, your bank will map the payment to the shipping bill and issue the BRC — even if the remitter differs from the consignee.

RBI & FEMA Guidelines

Under FEMA and RBI regulations, third-party payments are permitted for export/import transactions if:

• There's a written agreement between parties
• Proper documentary evidence is submitted
• The transaction is bonafide and traceable

So it's legal — as long as it’s transparent.

Final Checklist

• Advance intimation to bank - Recommended 
• Third-party declaration letter - Mandatory 
• SWIFT/FIRC with remitter details - Mandatory 
• Export invoice and shipping bill - Mandatory 
• Purchase order (if available) - Helpful but optional 

Image source: Canva

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views, official policy or position of GlobalLinker.