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Export of Goods & Services

Reserve Bank of India (RBI) has updated the regulations on export of goods and services.

What are the regulations on declaration of exports?

  • In case of exports taking place through Customs manual ports, every exporter of goods or software in physical form or through any other form, either directly or indirectly, to any place outside India, other than Nepal and Bhutan, shall furnish to the specified authority, a declaration containing the amount representing –
    • Full export value of the goods or software; or
    • If the full export value is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions expects to receive on the sale of the goods or the software in overseas market.
  • Realization of export proceeds in respect of export of goods / software from third party should be duly declared by the exporter.
  • Form EDF should be completed in duplicate for export from non-Electronic Data Interchange (EDI) ports.
  • Form SOFTEX should be completed in triplicate for declaration of export of software otherwise than in physical form, i.e. magnetic tapes / discs, and paper media.

What are the exemptions from exports declaration?

Export of goods / software may be made without furnishing the declaration in the following cases –

  • Trade samples of goods and publicity material supplied free of payment.
  • Personal effects of travellers, whether accompanied or unaccompanied.
  • Ship's stores, trans-shipment cargo and goods supplied under the orders of Central Government or military, naval or air force authorities in India for military, naval or air force requirements.
  • Tugs or Tug Boats, Dredgers and Vessels used for providing offshore support services, subject to their re-import into India.
  • By way of gift of goods accompanied by a declaration by the exporter that they are not more than ₹5 lakh in value.
  • Aircrafts or aircraft engines and spare parts for overhauling and / or repairs abroad subject to their reimport into India after overhauling / repairs, within 6 months from the date of their export.
  • Re-export of leased aircraft / helicopter and / or engines / auxiliary power units (APUs), either completely or in partially knocked down condition re-possessed by overseas lessor and duly de-registered by the Directorate General of Civil Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request Authorisation (IDERA) holder under ‘Cape Town Convention’ or any other termination or cancellation of the lease agreement between the lessor and lessee subject to permission by DGCA / Ministry of Civil Aviation for such exports.
  • Goods imported free of cost on re-export basis.
  • The following goods which are permitted by the Development Commissioner of the Special Economic Zones (SEZ), Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) or Free Trade Zones to be re-exported – 
    • imported goods found defective, for the purpose of their replacement by the foreign suppliers / collaborators.
    • goods imported from foreign suppliers / collaborators on loan basis.
    • goods imported from foreign suppliers / collaborators free of cost, found surplus after production operations.
  • Replacement goods exported free of charge in accordance with the provisions of Foreign Trade Policy in force, for the time being.
  • Goods sent outside India for testing subject to re-import into India.
  • Defective goods sent outside India for repair and re-import provided the goods are accompanied by a certificate from an authorised dealer in India that the export is for repair and re-import and that the export does not involve any transaction in foreign exchange.
  • Exports permitted by RBI, on application made to it, subject to the terms and conditions, if any, as stipulated in the permission.

What are the timelines for realisation of export proceeds and submission of export documents?

  • The amount representing the full export value of goods / software / services exported shall be realised and repatriated to India within 15 months (earlier 9 months) from the date of export.
  • Where the goods are exported to a warehouse established outside India with the permission of RBI, the amount representing the full export value of goods exported shall be paid to the authorised dealer as soon as it is realised and in any case within 15 months from the date of shipment of goods.
  • Where the export of goods / software / services has been made by Units in SEZ / Status Holder exporter / Export Oriented Units (EOUs) and units in EHTPs, STPs and Bio-Technology Parks (BTPs), the amount representing the full export value of goods or software shall be realised and repatriated to India within 15 months (earlier 9 months) from the date of export.
  • The date of export in relation to the export of software in other than physical form, shall be deemed to be the date of invoice covering such export.
  • The documents pertaining to export shall be submitted to the authorised dealer within 21 days from the date of export, or from the date of certification of the SOFTEX form.

What are the regulations on advance payment against exports?

  • Where an exporter receives advance payment (with or without interest), from a buyer / third party named in the export declaration made by the exporter, outside India, the exporter shall ensure that –
    • The shipment of goods is made within 3 years (earlier 1 year) from the date of receipt of advance payment.
    • The rate of interest, if any, payable on the advance payment shall not exceed 100 basis points above the London Inter-Bank Offered Rate (LIBOR).
    • The documents covering the shipment are routed through the authorised dealer through whom the advance payment is received.
  • In the event of the exporter's inability to make the shipment, partly or fully, within 3 years (earlier 1 year) from the date of receipt of advance payment, no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the period of 3 years (earlier 1 year), without the prior approval of RBI.
  • However, an exporter may receive advance payment where the export agreement itself duly provides for shipment of goods extending beyond the period of 3 years (earlier 1 year) from the date of receipt of advance payment.


References

Reserve Bank of India. (2016, January 12). 'Foreign Exchange Management (Export of Goods & Services) Regulations, 2015 (Amended upto November 14, 2025)'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10256&Mode=0

Reserve Bank of India. (2025, November 13). 'Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12923&Mode=0


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