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Export and Import of Goods and Services

Reserve Bank of India (RBI) has issued regulations on export and import of goods and services.

What are the regulations for declaration of exports?

  • An exporter of goods shall furnish to the specified authority, a declaration in the Export Declaration Form (EDF) specifying the amount representing the full export value of goods, at the time of export.
  • EDF will be deemed to be submitted as part of shipping bill for goods exported through Electronic Data Interchange (EDI) port.
  • An exporter of services shall furnish to the specified authority, a declaration in EDF specifying the amount representing the full export value of services, within 30 days from the end of month in which invoice for services has been raised.
  • The exporter of services who has exported services to one or more recipients in a month, may submit a single EDF for all such exports.
  • The exporter of services other than software, may submit an EDF on or before the date of receipt of payment.
  • In the case of a non-EDI port for export of goods, or where the specified authority for export of services is other than an Authorised Dealer, the duly authenticated EDF, shall be forwarded by the specified authority to the respective Authorised Dealer.

Who is the specified authority?

Specified authority means –

  • Commissioner of Customs in Domestic Tariff Area (DTA) and Development Commissioner of Special Economic Zone (SEZ) in SEZ, for goods.
  • An Authorised Dealer in DTA and Development Commissioner of SEZ in SEZ, for services other than software.
  • An Authorised Dealer or Software Technology Parks of India (STPI) in DTA, and Development Commissioner of SEZ in SEZ, for software.

What are the regulations for receipt and payments?

  • An Authorised Dealer shall make a credit or debit to the account of an exporter or an importer, for receipt of export or payment for import and shall simultaneously close or update the respective entry in Export Data Processing and Monitoring System or Import Data Processing and Monitoring System (EDPMS or IDPMS).
  • In the case of export where the shipping bill (for goods) or invoice (for services) is up to ₹10 lakh (or its equivalent in foreign currency), entry in EDPMS may be closed based on a declaration from the exporter to the effect that the payment against the shipping bill / invoice has been realised either in full or otherwise. 
  • In the case of import where the Bill of Entry (for goods) or invoice (for services) is up to ₹10 lakh (or its equivalent in foreign currency), entry in IDPMS may be closed based on a declaration from the importer to the effect that the payment for import has been made either in full or otherwise. 
  • An Authorised Dealer may allow set-off of export receivables against import payables from / to the same overseas buyer or supplier or with their overseas group or associate companies, within the stipulated period for realisation of export proceeds or extended period, if any, allowed by the Authorised Dealer.
  • An Authorised Dealer may permit third party (other than the parties undertaking export and import) receipts and payments for export and import transactions.

What are the criteria for reduction in the export realization?

  • An Authorised Dealer may, on request from the exporter citing reasons for under-realisation or non-realisation of full export value, allow reduction in realisation of export value.
  • Where the export value is up to ₹10 lakh (or its equivalent in foreign currency) per shipping bill (for goods) or invoice (for services), the reduction of export value (including non-realisation of full export value) may be permitted based on a declaration from the exporter.

What shall be the time period for realisation of exports?

  • The amount representing the full export value (or reduced export value) of goods and services shall be realised and repatriated by the exporter within 15 months.
  • Where the export of goods and services is invoiced or / and settled in Indian Rupees, the period for realisation and repatriation of full export value shall be 18 months.
  • The period shall be calculated from –
    • The date of shipment in case of goods (other than goods exported to a warehouse outside India).
    • The date of sale of goods from the warehouse in case of goods exported to a warehouse outside India.
    • The date of invoice in case of services.
  • In case of project exports, the amount shall be realised and repatriated as per payment terms of the contract.

What are the regulations for advance payment for exports and imports and delayed payment for imports?

  • An exporter shall, in case of advance receipt for export, route the advance amount, and realisation of export proceeds, if any, through the same Authorised Dealer. However, an exporter may route the transactions through any other Authorised Dealer provided the exporter has intimated the change to both the Authorised Dealers.
  • In case of advance payment for imports, an importer shall route the advance payment and its subsequent payments, if any, through the same Authorised Dealer. However, an importer may route the transactions through any other Authorised Dealer provided the importer has intimated the change to both the Authorised Dealers.
  • An exporter, or an importer, as the case may be, shall ensure that interest payable, if any, on advance payment received for export, or on delayed payment for imports, shall not exceed the all-in-cost ceiling of trade credit in terms of the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018.

What if imports are not materialised or exports are not realised?

  • Where an importer is unable to import within the contract period, or the extended period, the importer shall repatriate the advance payment made, if any.
  • If the advance payment is not repatriated by the importer within the contract period or extended period, if any, allowed by the Authorised Dealer or where the IDPMS entry has not been marked-off, any future advance payment for imports by the importer shall require an unconditional, irrevocable standby Letter of Credit or a guarantee from an international bank of repute or a guarantee of an Authorised Dealer in India, which is issued against a counter-guarantee of an international bank of repute.
  • If the export proceeds of an exporter remain unrealised beyond 1 year from the due date of realisation or extended period, if any, allowed by an Authorised Dealer, the exporter shall undertake further exports only against receipt of full advance or an irrevocable Letter of Credit.

What are the regulations for Merchanting Trade Transaction (MTT)?

  • A person undertaking MTT shall ensure that –
    • The period between the outward remittance and inward remittance or vice versa does not exceed 6 months.
    • Outward remittances are sent only to the overseas seller and inward remittances are received only from the overseas buyer.
  • An Authorised Dealer shall credit or debit the account of its customer for any cross-border transaction related to MTT and shall simultaneously close or update the respective entry in EDPMS and / or IDPMS.

What are other regulations?

  • No advance remittance shall be permitted by an Authorised Dealer for the import of gold or silver.
  • A project exporter may deploy temporary cash surplus, generated outside India, from such exports, for investments in short-term instruments (with original or residual maturity of 1 year or less) including in treasury bills and in deposits with banks, outside India.

From when shall the regulations be applicable?

The regulations shall come into force from October 01, 2026.


References

Reserve Bank of India. (2026, January 16). 'Export and Import of Goods and Services'. Retrieved from https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13278&Mode=0

Reserve Bank of India. (2026, January 13). 'Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026'. Retrieved from https://rbi.org.in/Scripts/NotificationUser.aspx?Id=13277&Mode=0

Reserve Bank of India. (2026, January 16). 'Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 and Directions on Export and Import of Goods and Services'. Retrieved from https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62049


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