The launch of the Foreign Trade Policy (FTP) 2023 promised hope, possibilities, and new beginnings for the global trade arena. However, amidst all the excitement, the issue of the Electronic Bank Realisation Certificate (EBRC) remained unresolved, causing a significant disturbance among the E-commerce exporters.
As a beacon of enlightenment for the export-import industry, we felt the pressing need to address this concern head-on and offer practical solutions. In this blog post, we're going to unravel the EBRC challenge and provide a roadmap to navigate this labyrinth efficiently.
EBRC: An Unavoidable Necessity, A Cumbersome Burden?
The EBRC has become a towering issue for E-commerce exporters. It is a mandatory certificate, functioning as a proof of payment arrival, needed to close the shipping bill in banks post the payment receipt. Unfortunately, banks are charging a steep fee of 1000 to 1500 INR per invoice for this service, causing distress among the E-commerce business community.
Given the inherently small per transaction value in E-commerce exports, the cost of each EBRC is often more than the profit reaped from individual unit sales. It's like the sword of Damocles hanging over the exporters, always threatening to cut into their profits.
Newcomers to E-commerce exports may not feel the pinch immediately, thanks to the shipping bill set-off notice time of around nine months. However, as the months roll on and banks begin demanding per transaction fees for EBRC, the reality of the situation starts to bite.
Is There a Way Out?
Yes, there certainly is! We have identified practical solutions to tackle this issue.
Firstly, it's important to note that not all banks charge the same rates for EBRC. Therefore, an exporter can approach various banks to compare and find the most affordable EBRC fees.
For instance, several private banks provide EBRC services free of charge provided the Minimum Average Balance (MAB) is high, say around 1,00,000 INR. Even many government banks support E-BRC bulk uploads at an affordable price.
But what if you're stuck with an older bank that charges exorbitantly for EBRC? In this case, you can initiate a bank change. You can have your data transferred from your old bank to your new one via the Export Data Processing and Monitoring System (EDPMS). This way, all your E-commerce pending E-BRC data can be shifted to your new bank where E-BRC is less expensive or even free.
The Role of Barai Overseas
Before diving into any E-commerce or Export business, it is highly advisable to consult an expert. Barai Overseas (BO) has earned a reputation for providing practical support in this field. They extend assistance in many areas of E-commerce exports such as marketing, product research, profit calculation, finding out niche markets, and marketplace selections.
Their pragmatic approach to resolving EBRC issues has already helped numerous clients. By recommending the right banking institutions with affordable or even free E-BRC services, they ensure the E-commerce export business remains profitable and sustainable for the long run.
The Final Word
The EBRC issue, though daunting, is not an insurmountable one. It does require strategic planning, research, and a proactive approach to banking and finance management. However, with the right guidance from experts like Barai Overseas and a willingness to explore and negotiate with various banks, E-commerce exporters can turn this challenge into an opportunity for greater financial efficiency and business growth.
Remember, every policy, every change brings along its set of challenges. But it also unfolds new pathways, new solutions. As an Export-Import guru, I stand committed to helping you navigate these paths and find the best solutions tailored to your needs.
Happy exporting!