This is a very important compliance process under Foreign Exchange Management Act (FEMA) and also linked to GST refund eligibility for exports.

reconciliation of export proceeds with the Authorized Dealer (AD) Bank using shipping bill details, when foreign buyer payments are received from abroad.

This is a very important compliance process under Foreign Exchange Management Act (FEMA) and also linked to GST refund eligibility for exports.

Let’s go step by step 👇

🌍 1. Background

When an exporter makes a shipment, two parallel reporting systems are involved:

System Purpose Key Document
Customs (ICEGATE) Records export shipment Shipping Bill
Bank (AD Bank) Records inward foreign exchange receipts Foreign Inward Remittance Certificate (FIRC) / Bank Realisation Certificate (BRC)

These two datasets — Shipping Bill (customs) and FIRC/BRC (bank) — must match to prove that:

  • The export declared in customs has been realized (i.e., payment received in convertible foreign exchange).

  • The remittance belongs to the correct export shipment.

💰 2. When You Receive Payment from Abroad

When your overseas buyer remits payment to your exporter’s bank account (AD Bank):

  1. The foreign currency amount is credited by the AD Bank.

  2. The AD Bank converts it into INR (if applicable).

  3. The bank records:

    • Importer name (remitter name),

    • Invoice No./Date (if mentioned in SWIFT message),

    • Purpose code (e.g., P0104 – Export of goods),

    • Shipping Bill Number(s) (if given by exporter).

📦 3. Reconciliation Using Shipping Bill Details

After receiving payment, exporters must link the inward remittance to the correct export shipment(s).

Required details for linking:

  • Shipping Bill No. & Date

  • Invoice No. & Date

  • Port of export

  • FIRC No. / BRC No.

  • Realised Amount (in foreign currency and INR)

  • Date of realisation

This matching is done either manually or through EDPMS (Export Data Processing and Monitoring System), maintained by the RBI and accessed by the AD Bank.

🏦 4. Role of AD Bank & EDPMS System

  • Every shipping bill is reported by Customs ICEGATE into EDPMS.

  • The AD Bank enters the inward remittance details into the same system.

  • The exporter (through the bank) provides Shipping Bill Nos. against which the payment should be linked.

  • The AD Bank then matches the payment with the shipping bill and closes it in the EDPMS system.

✅ Once matched → that shipping bill is marked as “Realised” in EDPMS.
❌ If not matched within the prescribed time → it remains “Unrealised” (which can attract FEMA follow-ups).

📊 5. Why This Reconciliation Is Important

Purpose Why It Matters
FEMA compliance Export proceeds must be realised within 9 months (extendable).
GST refunds For export without payment of IGST, proof of realisation may be required.
DGFT / MEIS / RoDTEP Realisation data (via EDPMS) validates eligibility.
Audit / Statutory reporting Ensures foreign income recorded correctly in books.

🧾 6. How to Reconcile Practically

Step-by-step:

  1. Download shipping bill data from ICEGATE or from your CHA/exporter records.

  2. Obtain FIRC details or AD Bank Realisation Report from your bank.

  3. Prepare a reconciliation sheet, for example:

Shipping Bill No. Date Invoice No. FIRC No. Realisation Date Currency Amount (USD) Status
1234567 20-Jul-2025 INV-45 FIRC/2025/9876 10-Aug-2025 USD 25,000 Realised
1234589 25-Jul-2025 INV-47 FIRC/2025/9876 10-Aug-2025 USD 15,000 Realised

  1. Submit to AD Bank (email or branch) to update in EDPMS.

  2. Verify closure through your bank relationship manager.

🧮 7. Important Points

  • Mention Shipping Bill Numbers clearly in your export invoice and SWIFT message / remittance instructions to help banks match automatically.

  • One remittance can be linked to multiple shipping bills, or vice versa.

  • Keep copies of FIRC/BRC, Shipping Bills, and Invoices for statutory and audit purposes.

✅ 8. Summary

Aspect Description
System EDPMS (Export Data Processing and Monitoring System)
Authority RBI + AD Banks
Documents to Reconcile Shipping Bill (Customs) ↔ FIRC/BRC (Bank)
Who Performs Reconciliation Exporter with AD Bank
Purpose FEMA compliance & export realisation proof
Key Details Used Shipping Bill No., Date, Invoice No., FIRC No., Amount
Deadline 9 months from export date (Rule under FEMA)


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