A new field
titled 'Mode of Export of Services' has been introduced by The Directorate
General of Foreign Trade (DGFT) in the Electronic Bank Realisation Certificate
(eBRC) format for service exports, effective May 1, 2025.
This update aims to enhance the self-certification process for exporters on the DGFT portal and align India's data collection framework with global standards under the World Trade Organization's (WTO) General Agreement on Trade in Services (GATS).
What is Mode of Export of Services?
The 'Mode of Export of
Services' field corresponds to the four modes of services trade listed under
GATS:
Mode 1: Cross-border Supply
Services supplied remotely
across borders without movement of individuals, e.g., IT services, remote
consulting, telemedicine.
Mode 2: Consumption Abroad
Consumer travels to the service
provider's country, e.g., tourism, medical treatment, foreign students.
Mode 3: Commercial Presence
Service supplier establishes a
commercial entity abroad, e.g., Indian bank branches overseas, IT company
subsidiaries.
Mode 4: Presence of Natural Persons
Individual travels abroad
temporarily to provide services, e.g., engineers, doctors, IT professionals on
assignment.
Impact on Exporters
Exporters certifying eBRCs
linked to Indian Reference Modules (IRMs) must now specify the mode of export
while completing the certification. This change aims to improve the accuracy
and detail of service export reporting.
An e-BRC is the electronic version of the Bank Realisation Certificate. Introduced by DGFT in 2012, it allows banks to submit payment details digitally, making the export documentation process faster and paperless. The Authorised Dealer (AD) bank, through which the exporter receives the foreign payment, issues the e-BRC after verifying the export documents and payment details.
e-BRCs serve multiple purposes:
•Proof of export payment
received
•Mandatory for claiming export
incentives (MEIS, SEIS, RoDTEP, etc.)
•Needed for GST refunds
•Ensures compliance with DGFT,
RBI, and GST laws
•Supports data sharing with
other regulatory bodies.
