DGFT eRBD CERTIFICATE

The eRBD certificate is an electronic certification provided by the DGFT in India, which is mandatory for Indian exporters looking to transport products from a customs-bonded warehouse to a foreign location. This certificate acts as confirmation that the merchandise has been produced or acquired in India and is suitable for export.

TYPES OF DGFT eRBD CERTIFICATE:

The electronic certificate known as DGFT eRBD is granted for two categories of exports, which include exports with a request for a refund or rebate, and exports with a request for duty drawback.

The eRBD certificate for rebate/refund is given to exporters who export goods from a customs-bonded warehouse and wish to request a refund of the duty they paid for the exported goods. This refund can only be claimed after the goods have been exported.
In English:The eRBD certificate for duty drawback is given to exporters who are exporting goods from a warehouse that is under customs-bond. This certificate is requested for before the goods are exported, and it allows the exporter to claim a duty drawback.

There are two kinds of eRBD certificates that have a designated time frame and can be used for various shipments within that given timeframe. The extension of the validity period of the certificate is on a case-by-case basis, contingent on the export type and other details. It is critical to verify the certificate’s expiration date before utilizing it in any export deal.

BENEFITS OF DGFT eRBD CERTIFICATE:

Indian exporters can enjoy various advantages from obtaining the eRBD certificate. Among the key benefits are:

The eRBD certificate enables exporters to request exemption from paying duties on items that they export from a warehouse that is under customs control.
Exporters who have eRBD certificates are able to receive quicker clearance of their goods from the customs-bonded warehouse.
The process of applying and clearing the eRBD certificate is improved and accelerated due to the reduction of physical paperwork.
Digital validation: The eRBD certificate is a certificate that exists in digital format and can be verified through the internet. This simplifies the task of customs officers in verifying the legitimacy of the certificate.

The procedure for obtaining an eRBD certificate from DGFT:

Applying for the eRBD certificate from DGFT is a straightforward process that can be done through the internet. The application process is detailed below in a series of steps.

Step 1: Register on the DGFT website

In order to obtain an eRBD certificate, the exporter needs to first sign up on the DGFT website. This involves giving their basic details and setting up a unique username and password.

Step 2: Fill in the application form

After completing the registration process, the exporter is obligated to provide the necessary information on the eRBD application form found on the DGFT website. Some of the pertinent details may include the exporter’s name and address, specifics about the items destined for export, and the location of the customs-bonded warehouse containing the goods.

Step 3: Upload supporting documents

In addition to submitting the application form, the exporter is required to provide supplementary paperwork including the import-export code (IEC) certification, bond license, and warehouse certificate.

Step 4: Submit the application

Once the exporter completes the application form and uploads the required documents, they are able to submit the application electronically.

Step 5: Receive the eRBD certificate

Once the application is given the green light, the eRBD certificate will be provided by the DGFT via electronic means. The exporter will be able to get hold of and produce the certificate by downloading and printing it.

The necessary papers needed in order to obtain a DGFT eRBD Certificate:

In order to obtain the DGFT eRBD certificate, the documents listed below are necessary.

All importers and exporters in India are required to obtain an Import-Export Code (IEC) certificate. Failure to do so is not permissible.
A Bond license refers to a permit granted by the customs department to manage a warehouse that is authorized to store goods under customs supervision.
A warehousing certificate is granted by the customs department and serves as evidence that the goods are kept in a warehouse that is under customs control.
The invoice and packing list contain information about the products being sent overseas, such as the amount, worth, and how they are packaged.

REGISTRATION PROCESS:

In order to obtain the DGFT eRBD certificate, the exporter must first create an account on the DGFT website and provide necessary information on the application form. Additionally, they need to upload certain documents like IEC certificate, bond license and warehousing certificate. Once the application is verified and confirmed, they will receive the electronic eRBD certificate, which they can download and print for their use.

DOCUMENTS REQUIRED:

To obtain the DGFT eRBD certificate, you will need to provide certain documents. These include the import-export code (IEC) certificate, a license for the bond, a certificate for warehousing, an invoice and packing list, and a copy of the export order.

COST & TIME INVOLVED:

The duration and expenses in acquiring the DGFT eRBD certificate are subject to the export type and the DGFT’s processing time. While no fees are levied for receiving the eRBD certificate, the exporter has to bear the relevant taxes and duties. The customary timeframe for the eRBD certificate’s processing is generally 2-3 operational days.

ADVANTAGES:

The Indian exporters are offered multiple benefits through the DGFT eRBD certificate, which includes exemption from duty, quicker clearance of merchandise, simplified paperwork, and digital authentication. By having this certificate, exporters can avail themselves duty exemption on products dispatched from a customs-bonded warehouse, and there is no need for physical paperwork, enabling a more effective application and clearance process.

DISADVANTAGES:

The DGFT eRBD certificate has a significant drawback as it solely pertains to exports from customs-bonded warehouses. Exporters are obliged to adhere to the guidelines and legal requisites associated with the eRBD certificate to prevent penalties and potential legal consequences from customs authorities. If the commodities aren’t stored in a customs-bonded warehouse, obtaining the eRBD certificate isn’t possible.

Laws and regulations that have to be followed for obtaining the DGFT eRBD certificate:

To get the DGFT eRBD certificate, one needs to follow certain procedures such as registering on the DGFT website, submitting an application form with specific information about the exported goods and the customs-bonded warehouse location, and providing supporting documents such as the IEC certificate, bond license, and warehousing certificate. Once the application is accepted, the DGFT releases the eRBD certificate, which can be obtained electronically and printed by the exporter.

The eRBD certificate has a set time frame for its effectiveness and must only be utilized during that timeframe. The length of time the eRBD certificate lasts varies based on the kind of export and is stated on the certificate. The exporter is responsible for guaranteeing that the eRBD certificate is employed during its validity period. Otherwise, the certificate becomes void, and the exporter will not be qualified for duty exemption.

The exporter has the responsibility to confirm that the goods being sent abroad meet the requirements set forth in the eRBD certificate. Any inconsistency with the goods shipped may result in fines and legal measures imposed by customs officials. To avoid such negative consequences, the exporter must keep accurate records and evidence of the exported goods, which must be available upon request from the customs authorities.

CONCLUSION:

The eRBD certificate offered by DGFT is a digital certificate that enables Indian exporters to seek exemption from duty on goods exported from a customs-bonded warehouse. The application process is straightforward and can be accomplished online. Along with the IEC certificate, bond license, and warehousing certificate, exporters must submit relevant documents as evidence.

In conclusion, obtaining the DGFT eRBD certificate is a legal requirement for Indian exporters who want to export goods from a customs-bonded warehouse to a foreign destination. The certificate provides several benefits to exporters, including duty exemption, faster clearance of goods, reduced paperwork, and digital verification. The exporter must comply with the rules and legal requirements governing the eRBD certificate to avoid penalties and legal action by the customs authorities.