Corporate Practice bd
How to prepare Proceed realization certificate (PRC) ?
Introduction to PRC:
A Proceed Realization Certificate (PRC) is an important document used primarily in the context of export-import transactions. It certifies that the foreign currency proceeds from an export have been realized and received in the bank account of the exporter. This document is often required for compliance with regulations and for claiming various benefits or incentives from the government.
Purpose of PRC:
- Regulatory Compliance: Ensures compliance with foreign exchange regulations.
- Financial Benefits: Allows exporters to claim incentives, refunds, or exemptions.
- Record Keeping: Serves as proof of the receipt of payment for exports.
Steps to Prepare a PRC:
1. Gather Necessary Documentation:
Export Invoice: Details of the transaction, including the value and currency.
Shipping Bill: Document showing that the goods have been exported.
Bank Statements: Evidence of the receipt of payment in foreign currency.
Foreign Exchange Declaration: If applicable, any declarations made to authorities regarding the transaction.
2. Drafting the PRC:Header:
Include the title “Proceed Realization Certificate” along with the issuing bank’s name, address, and contact details.Exporter Details: Provide the name, address, and contact details of the exporter.
Transaction Details: Include specifics such as:
Invoice number
Export date
Amount realized
Currency of realization
Bank Details: Mention the bank account details where the payment was received.
3. Verification Process:
The bank must verify that the payment has been received in accordance with the applicable regulations.
Ensure all documents provided match the details mentioned in the PRC.
4. Signature and Seal:
The PRC must be signed by authorized bank personnel and include the bank’s official seal.
5. Distribution of the PRC:
Provide copies of the PRC to the exporter and retain a copy for the bank’s records.
Exporters may need to submit the PRC to relevant government authorities or for claiming benefits.
Key Components of a PRC:
- Certificate Number: Unique identifier for the PRC.
- Date of Issue: Date on which the PRC is issued.
- Details of the Export Transaction: Comprehensive details about the export transaction, including all relevant identifiers.
- Payment Confirmation: Explicit statement confirming that payment has been realized.
- Regulatory References: Any relevant regulations or guidelines that pertain to the PRC.
Challenges in PRC Preparation:
- Documentation Accuracy: Ensuring all documents are accurate and correspond to the transaction.
- Regulatory Changes: Keeping up with changes in regulations that may affect the PRC process.
- Timeliness: Preparing and submitting the PRC in a timely manner to avoid delays in claiming benefits.
Conclusion:
The Proceed Realization Certificate (PRC) is a vital document in the export process, serving both compliance and financial purposes. Proper preparation involves gathering necessary documentation, drafting the certificate accurately, and following through with verification and issuance. By adhering to best practices in PRC preparation, exporters can facilitate smoother transactions and benefit from various export incentives.
Here is the Practical format of Proceed realization certificate (PRC)
ABC Bank Limited PLC
Principal Branch Dhaka-1205
Ref. No. ABCPLC/PB/EXP/PRC/2024/0000 Date: 25-sep-2024
PROCEEDS REALIZATION CERTIFICATE:
We do hereby certify that the following proceeds have been realized against various Back to Back L/Cs on different dates on account of Corporate practice bd Limited during the period from 01.01.2024 to 30.06.2024.
|
SL.NO |
IBP NO. |
LC NO. |
LC Date |
Document Value(USD) |
Realized Amount(USD) |
Realized Date
|
|
01 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
01.01.2024 |
|
02 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
04.01.2024 |
|
03 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
11.01.2024 |
|
04 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
23.01.2024 |
|
05 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
25.02.2024 |
|
06 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
03.01.2024 |
|
07 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
13.03.2024 |
|
08 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
12.03.2024 |
|
09 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
04.02.2024 |
|
10 |
SIBL-IBP-23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
04.01.2024 |
|
11 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
14.02.2024 |
|
12 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
04.02.2024 |
|
13 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
05.02.2024 |
|
14 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
13.03.2024 |
|
15 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
30.01.2024 |
|
16 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
05.02.2024 |
|
17 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
03.03.2024 |
|
18 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
28.01.2024 |
|
19 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
14,02.2024 |
|
20 |
SIBL-IBP/23/00 |
120223040000 |
16.7.2023 |
$ 21,000.00 |
$ 20,992.00 |
16.04.2024 |
|
|
|
|
Total |
4,20,000 |
4,19840 |
|