Stories
RBI Overhauls FEMA Rules: Exporters, Importers Face Major Changes from October 1
- •Exporters now have nine months, down from 15, to realize and repatriate export proceeds for goods and services.
- •Deadline for exports invoiced or settled in Indian rupees reduced to 12 months from 18 months.
- •Service exports now require a formal Export Declaration Form (EDF) within 30 days of invoice, increasing regulatory visibility.
- •AD banks will monitor import payments based on commercial contract terms, offering more flexibility for businesses.
- •Simplified procedures introduced for export transactions up to ’10 lakh, easing documentation for smaller exports.
Key Questions Answered
Exporters now have nine months instead of 15 months to realize and repatriate export proceeds, counted from the date of shipment for goods and the date of invoice for services. For exports invoiced or settled in Indian rupees, the deadline is reduced to 12 months from 18 months. Authorised dealer banks can extend these deadlines upon a satisfactory request from the exporter.
Service exporters must now submit a formal Export Declaration Form (EDF) within 30 days from the end of the month in which the invoice is raised. Exporters can submit a single EDF covering multiple service exports made to different recipients within a month. This brings service exports into a formal reporting framework to increase regulatory visibility.
For exports of goods or services up to ₹10 lakh per shipping bill or invoice, exporters can submit a declaration that payment has been realized to close the transaction in the EDPMS. Reductions in export value or non-realization can also be permitted for these smaller transactions based on an exporter's declaration.
