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The Directorate General of Foreign Trade (DGFT) has announced a new update to the way service exports will be recorded, as per a Trade Notice aiming to improve accuracy and align with global trade standards. Beginning May 1, 2025, a new field titled ‘Mode of Export of Services’ will be added to the Electronic Bank Realisation Certificate (eBRC) format.
This is especially important for sectors like healthcare services, which include telemedicine and related regulatory consultancy. These businesses often deal with overseas clients through various channels, and the new system will help better categorize and recognize their contributions to India’s export economy.
An eBRC is a digital certificate issued by a bank to confirm an exporter has received payment for exported goods or services. It's crucial for claiming export incentives, duty drawbacks, and other benefits, streamlining the process and ensuring efficient export documentation. In the pharma and healthcare sector, eBRCs are essential for availing government schemes and complying with regulations.
The eBRC is a key document used by Indian exporters to confirm that they have received payment from overseas customers. With this new change, exporters will need to specify how their service was delivered internationally. This information must be included when self-certifying eBRCs linked to Inward Remittance Messages (IRMs), using the DGFT portal through either API integration or bulk upload options.
API integration involves connecting different software applications or systems using Application Programming Interfaces (APIs) to allow them to exchange data and perform actions seamlessly. APIs are sets of protocols and standards that enable different software applications to communicate with each other.
The new field will capture internationally recognized modes of service export, based on the definitions under the World Trade Organization’s General Agreement on Trade in Services (GATS): Mode 1 – Cross-Border Supply: Services provided remotely, such as online consulting, or telemedicine. Mode 2 – Consumption Abroad: Foreign clients who travel to India to receive services like healthcare. Mode 3 – Commercial Presence: Indian companies setting up branches or subsidiaries abroad to deliver healthcare services.
This reform is part of an ongoing effort by the DGFT to improve India’s foreign trade data systems. By capturing detailed information about how services are exported, the government hopes to better understand trends, support exporters more effectively, and strengthen India’s position in global trade discussions.
“Exporters are encouraged to familiarize themselves with this change through manuals available on the DGFT website under the “Learn” section. They can also seek help through the DGFT Helpdesk or send feedback to ebrc-dgft@gov.in,” informed a DGFT official.
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