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<p>The world of shipping changed forever during the pandemic. Over the last year or so, we’ve seen power being concentrated in the hands of larger forwarders and shipping lines. There is price uncertainty, and even after, it’s been difficult to procure space on a vessel.<br></p>
<p>Needless to say, this change has affected a lot of our partners and smaller businesses. A lot of freight forwarding agents and customs house agents have borne the brunt of the macro-economic changes we’ve all witnessed in the last few months. Keeping our partners, small businesses and agents in mind, we have launched the Cogoport Partner Program.&nbsp;</p>
<h2>The Cogoport Partner Program<br></h2>
<h2>What is the Partner Program?</h2>
<p>Through the Cogoport partner program, you can book shipments online on behalf of your customers. No need to call up 8 different freight providers for rates. Get access to special rates on the Cogoport website. Add your own margin, and share rates with customers directly. The best part - once the shipment has been booked, our experts will make sure it is executed to perfection. You don't need to call 15 different people. We will handle the co-ordination between trucker, shipper, shipping line, customs agents, CFS provider, Haulage companies and more.</p>
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center" data-rt-max-width=""><a href="https://forms.office.com/Pages/ResponsePage.aspx?id=ViG8_EZrw0KHRQrLnS3SLW9oOpgqnChApCEXputeB5dUQkRDRTNSRUEyRUVZOUpSRklVTEE4VDc5UC4u" target="_blank">
        <div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/60a38bad43b2e15c288fcf70_Cogoport%20Partner%20program%20In%20Article.png" loading="lazy" alt="Image showing benefits of Cogoport Partner Program" width="auto" height="auto"></div>
    </a></figure>
<h2>What Regions Are Supported?<br></h2>
<p>The Cogoport Partner program gives small businesses and agents access to Cogoport’s vast supply network. With a focus on catering to the Far East and US region to begin with. The countries covered under this program are as follows:<br></p>
<ol>
    <li>China</li>
    <li>Thailand</li>
    <li>Japan</li>
    <li>South Korea</li>
    <li>Vietnam</li>
    <li>Malysia</li>
    <li>Indonesia</li>
    <li>United States of America<br></li>
</ol>
<blockquote>“The partner program has been developed keeping small businesses and agents in mind. They have suffered a lot over the last 1 year. We want to make the resources of a large organisation available to these agents and forwarders. We hope this helps them grow their business”, said Purnendu Shekhar, the founder of Cogoport.<br></blockquote>
<p>If you’re a customs agent or freight forwarder who is working in these regions, please <a href="https://forms.office.com/Pages/ResponsePage.aspx?id=ViG8_EZrw0KHRQrLnS3SLW9oOpgqnChApCEXputeB5dUQkRDRTNSRUEyRUVZOUpSRklVTEE4VDc5UC4u" target="_blank">register for the program by clicking here</a>.</p>
<p>‍<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog%20Banner%20WA%202.png" width="auto" style="width: auto; height: auto;"></a></p>
<h2>How does it work?<br></h2>
<p>You can apply for the partner program by clicking on the link below. After you’ve applied, one of our experts will get in touch with you, and ask you a few questions so you can be given access to the Cogoport platform. Through the platform, you will be able to book shipments for your customers. Here are the benefits of the program:<br></p>
<ol>
    <li>You get special rates from Cogoport for your business</li>
    <li>You can apply your own profit margin over these rates before sharing with your customers</li>
    <li>Once the shipment is booked, Cogoport will take care of the entire shipment for you</li>
    <li>You get to bring your business online, and earn more<br></li>
</ol>
<p>Cogoport will try to make it as easy for you. Once you book the shipment, our team will handle the entire execution. They will coordinate between all the people involved, including the trucker, shipper, airline, customs department, shipping line and your client.<br></p>
<p>If you’d like to register for the Cogoport Partner Program, <a href="https://forms.office.com/Pages/ResponsePage.aspx?id=ViG8_EZrw0KHRQrLnS3SLW9oOpgqnChApCEXputeB5dUQkRDRTNSRUEyRUVZOUpSRklVTEE4VDc5UC4u" target="_blank">register by clicking here right away or fill the form below</a>!</p>
<div><br></div>

Introducing the Cogoport Partner Program

<p>An eBRC (electronic Bank Realisation Certificate) is an extremely important digital certificate for those in the export business. It is issued by a bank as confirmation that the exporter has received payment from the buyer against the export of goods or services.</p>
<p>As an exporter, why do you need an eBRC? In this piece, we will not only answer this question but walk you through the eBRC process as well as your role in it. Read on to know:</p>
<ul>
<li>What is eBRC?</li>
<li>Why do you need it?&nbsp;</li>
<li>How does it work?&nbsp;</li>
<li>How to check eBRC status</li>
<li>Roles and responsibilities of bank, exporter and DGFT&nbsp;</li>
</ul>
<p><a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 3.png" width="auto"></a>&zwj;</p>
<h3><strong>What is the purpose of an eBRC?</strong></h3>
<p>In simple terms, an eBRC is proof of export. To fully understand it, though, one must first understand its purpose.</p>
<p>An exporter needs an eBRC to avail of the various<a href="https://www.cogoport.com/blogs/export-incentives-types-benefits-and-everything-else-you-need-to-know" target="_blank" rel="noopener"> export incentives</a> (duty exemptions, subsidies, low-cost loans, etc) offered by the government as part of its<a href="https://www.cogoport.com/blogs/foreign-trade-policy-2021-2026-expectations-for-the-import-export-sector" target="_blank" rel="noopener"> Foreign Trade Policy</a> (FTP). In India, the FTP and many of the export incentives it highlights are formulated and implemented by the Directorate General of Foreign Trade (DGFT). The DGFT also implements the eBRC platform, which allows banks to electronically upload to the DGFT server all foreign exchange realisation-related information related to exports. This information is transmitted through a digital certificate &ndash; the eBRC.</p>
<p>Before the DGFT introduced the eBRC platform in 2012, the process was entirely manual. The exporter had to visit their bank and request a Bank Realisation Certificate (BRC), which the bank provided in physical form. The exporter then submitted the BRC to the DGFT regional authority. The BRC details were entered manually in a DGFT application. This made the process of applying for export incentives lengthy and inconvenient. The eBRC did away with the need for a physical BRC as well as for the exporter to visit the bank or DGFT authority.</p>
<h3><strong>How does the eBRC process work?</strong></h3>
<p>Here&rsquo;s a flow chart of how the eBRC process works:<strong>&nbsp;&nbsp;</strong></p>
<ol>
<li>Thebank generates an e-BRC on realisation of export proceeds</li>
<li>Next, it creates a digital<a href="https://blog.hubspot.com/website/what-is-xml-file" target="_blank" rel="noopener"> XML file</a> containing information of the eBRC</li>
<li>The bank signs the XML file using a digital signer provided by the DGFT or developed by itself (the bank must register its signer with the DGFT beforehand)</li>
<li>Next, the bank uploads the XML file to the DGFT server. It does so by accessing the DGFT website, logging in to the e-BRC application and using the &ldquo;Upload eBRC&rdquo; option</li>
<li>Once the file is uploaded, the DGFT server verifies the user and validates the data. Thereafter, it sends an acknowledgement to the bank that the file has been successfully uploaded</li>
<li>Once the file has been uploaded, the exporter can immediately check the status of their eBRC on the DGFT portal&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
</ol>
<p>&zwj;<a href="https://cogoport.com/signup/en-IN/?utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank" rel="noopener"><img style="width: auto; height: auto;" src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog-Banner-Portal-1.png" width="auto"></a></p>
<h3><strong>How exporters can check their eBRC status &amp; Print</strong></h3>
<ol>
<li>On the DGFT website, go to the &ldquo;e-BRC Details for Trade&rdquo; page</li>
<li>Fill in the required fields, including IEC (Importer Exporter Code), IFSC code of the bank where payment for the exported goods has been received, and the shipping bill number and date</li>
<li>Click on &ldquo;Show Details&rdquo;. This will reveal all the eBRCs issued by the bank</li>
<li>Click on the relevant eBRC. You can also take a printout of the same</li>
</ol>
<p>&zwj;</p>
<h2><strong>eBRC Roles And Responsibilities</strong></h2>
<figure class="w-richtext-figure-type-image w-richtext-align-center" data-rt-type="image" data-rt-align="center">
<div><img src="https://uploads-ssl.webflow.com/5e57ba59552cf400c593fd16/60acdb63e18d4d493125282d_Roles%20%26%20Responsibilities.png" alt="eBRC - Roles &amp; responsibilities of the Bank, DGFT and the exporter" width="auto" height="auto" loading="lazy"></div>
</figure>
<p>&zwj;</p>
<h2><strong>What to do in case of an error in your eBRC</strong></h2>
<p>Once an eBRC is successfully uploaded to the DGFT server, it cannot be amended. If you notice an error in your eBRC when checking its status, you must contact your bank to have it rectified. Here&rsquo;s how the process works:</p>
<ul>
<li>The bank will check the status of the eBRC</li>
<li>It the status is not &ldquo;used&rdquo; or &ldquo;utilised&rdquo;, the bank will cancel the eBRC by uploading it to the DGFT server with status &ldquo;C&rdquo; (where C means cancelled)</li>
<li>After the DGFT server has updated the cancellation status, the bank will issue a fresh eBRC with a new eBRC number</li>
<li>It will upload the new eBRC file to the DGFT server with the status &ldquo;F&rdquo; (where F means fresh)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&zwj;</li>
</ul>
<h2><strong>How to claim export incentives using eBRC</strong></h2>
<p>When an exporter claims export incentive under a DGFT scheme, the DGFT decides on the value on which incentive is to be provided by matching the<a href="https://www.cogoport.com/vi-VN/knowledge-center/resources/shipping-terms/free-on-board-fob-3" target="_blank" rel="noopener"> FOB (Free on Board)</a> value of the goods exported, as contained in the shipping bill, and the total realised value against export, as mentioned in the eBRC. Whichever of the two is lower forms the basis on which incentive is granted.&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p>In India, the shipping bill (also called a bill of export) is generated electronically on Icegate, Indian Customs&rsquo; electronic data interchange (EDI) platform. It includes relevant details from the commercial invoice and packing list, two other documents critical to exports. The information contained in the shipping bill is automatically and electronically shared by Icegate with the DGFT, which it stores in a repository on its server. To claim an export incentive, an exporter must merely link the relevant shipping bill with the eBRC.</p>
<p>If the shipping bill has multiple products, the consolidated realisation value or FOB value, whichever is lower, is proportionately distributed among the various products based on a Multiplication Factor. <strong>Multiplication Factor M = FOB value actually realised in Rs as per eBRC / FOB value as per shipping bill.</strong></p>
<p>As an exporter, there are two things to pay attention to when applying for an export incentive:&nbsp;</p>
<ol>
<li>Make sure the eBRC value reported by the bank reflects the total realised value. If the eBRC value is less, have it corrected by the bank right away.</li>
<li>Enter the commission, insurance and freight values in the refund application as the eBRC does not include these details.</li>
</ol>
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<p>&nbsp;</p>
<p>&nbsp;</p>
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<h2><strong>eBRC and FIRC &ndash; GST refund requirements&nbsp;</strong></h2>
<p>&zwj;</p>
<p>An eBRC is proof of export. So, an exporter of services claiming a GST refund &ndash; either of input tax credit (ITC) paid on inputs or on integrated GST (IGST) paid on the export of services &ndash; must attach the eBRC with the refund application to support their claim. This requirement applies only to the export of services and not of goods. This is because, in the export of goods, the shipping bill is itself considered a deemed application for GST refund. But in the export of services, no shipping bill is required. Hence, the need for an eBRC to serve as evidence that export of services has taken place.</p>
<p>In 2016, the DGFT signed a <a href="https://www.thehindubusinessline.com/economy/gst-network-signs-mou-with-dgft-for-sharing-of-foreign-exchange-realisation-data/article9280902.ece" target="_blank" rel="noopener">memorandum of understanding</a> (MoU) with the GST Network (GSTN) for the integration of eBRC with GSTN. This paved the way for the sharing of foreign exchange realisation and IEC data. The objective was to strengthen the processing of export transactions under GST, make the process more transparent and reduce human interference.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p>Apart from eBRC, a services exporter might also be required to submit a Foreign Inward Remittance Certificate (FIRC) with their GST refund application. An FIRC is similar to an eBRC in that it is a certificate issued by a bank against money received from a foreign country. However, while an eBRC is issued strictly against export proceeds, the inward remittance in an FIRC could be payment for exports or for ocean or air freight, wages for consultancy services provided, or anything else for that matter. An FIRC is first and foremost proof that an individual has received payment in foreign currency from a foreign country. However, in GST refund claims, an FIRC &ndash; like an eBRC &ndash; acts as proof of export.</p>
<h2><strong>Other uses of eBRC</strong></h2>
<p>Apart from helping exporters avail of export incentives under the Foreign Trade Policy and claim GST refunds on services exports, an eBRC is an important source of financial information and economic indicator. To this end, the DGFT has signed MoUs with 14 state government and two central government agencies for data-sharing. Before the introduction of GST in 2017, state governments also required eBRC for the refund of value-added tax or VAT (an indirect tax that was later subsumed by GST).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p><em>To know more about GST refunds in the export business, read our two-part series</em><a href="https://www.cogoport.com/blogs/gst-refunds-part-1-export-without-payment-of-igst" target="_blank" rel="noopener"><em> here</em></a><em> and</em><a href="https://www.cogoport.com/blogs/gst-refunds-part-2-exports-with-payment-of-igst" target="_blank" rel="noopener"><em> here</em></a><em>.</em></p>

What is an eBRC & Why Do Exporters Need It

<p>Each fortnight, at Cogoport, we put together news that has the most significant impact on the ocean and air freight industry, to help global importers and exporters plan their trade and international shipping more effectively.</p><p>Get relevant updates on cargo volumes and booking availability, near-term forecasts of freight rates, and freight rate trends in our Ocean &amp; Air Freight Outlook 8 June, 2021 edition. </p><p>‍<a href="https://api.whatsapp.com/message/N4CI7UNDFE2ZM1?autoload=1&amp;app_absent=0&amp;utm_source=web&amp;utm_medium=blog&amp;utm_campaign=general" target="_blank"><img src="https://cdn.cogoport.io/cms-prod/cogo_public/vault/original/Blog Banner WA 2.png" width="auto" style="width: auto; height: auto;"></a></p><h3>India </h3><p>Volume of output reduced significantly in India due to the spread of COVID 19. Space isn’t full, and there have been many cancelations recently due to the effect of the second wave. Even though the market is slow, freight rates have maintained their strength. We do not expect rates to come down any time soon. Furthermore, considering the existing scenario, we expect carriers to be hesitant to take booking from/ to India in the near term. They will instead prefer to swap equipment and use it on more profitable trade routes like EU and Pacific.</p><p>On the Air cargo front, resuming International Flights Ex- India has not yet been cleared by the Aviation Ministry. Only limited cargo/freighter flights are working with limited space Ex- India. We recommend booking at least 3 weeks in advance. </p><p>Land transport is operational but is subject to individual state laws.</p><h3>Middle East </h3><p>Space is overbooked till mid-June already. We expect the same trend to continue till end of June. In view of increasing COVID-19 cases in India recently, there has been some concern about severe equipment shortages in the near future. We will have to see how this plays out. We’re seeing a 25-48% decrease in capacity for the Middle East trade lane due to the abovementioned reasons. </p><h3>Red Sea </h3><p>Red Sea space is extremely overbooked till end of June. We expect the space will not improve till mid-July at the earliest. We also expect the rates to go up on a weekly basis, purely because of the supply-demand dynamic. Expect an increase of 15-20% in rates on this trade lane. </p><h3>S.E. Asia</h3><p>In view of the effect on COVID-19 on SE Asian countries, the market can best be defined as slack. A new breakout was reported in Vietnam recently, and the government there has now imposed new restrictions on economic activity. Consequently, volumes have dropped significantly, and vessel schedule has been extremely volatile due to port congestion. Most carriers are still offering reduced free time to improve equipment availability. For the Vietnam export market, the space and equipment are extremely tight till end of May. We recommend booking 3-4 weeks in advanced. </p><p>Similarly, the Malaysian Government has implemented a “Movement Control Order” until 14 June. For the Malaysia import market, space is available now. For the Malaysia export market, space is overbooked until the end of June and there are severe equipment shortages. We recommend booking Malaysian exports at least 3 weeks in advance. </p><p>Philippines is facing restrictions due to COVID-19 too. Delayed schedule of feeder vessels is causing port congestion. This is further accentuated by customs delays at Manila port. A major fire on the access road to Manila port didn’t help matters. </p><p>The situation is similar in Indonesia, where the government has extended the emergency period till end of July. Ocean shipments are operational, but there are extremely severe equipment shortages. 40HC and 45’ containers are severely constricted too. </p><h3>China </h3><p>Trade is normal considering the current times we are living in. Air, ocean sailing are limited, and there were breakouts reported at the Shenzen port. Due to this, some carriers are swapping for nearby ports like Nansha. Similar congestion is also being seen at Yantian port. We expect this situation to continue till end of June, with equipment shortages persisting for a few more weeks. Air and Land shipments are running normally, but capacity is limited.</p>

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