RBI Notifies New FEMA Regulations for Export and Import of Goods
and Services, Effective 1 October 2026
1. Short title and commencement
2. Definitions
3. Declaration of exports
4. Manner of Receipt and Payment
5. Time period for realisation of exports
6. Reduction in the export realization
7. Set off of export receivables against import payables
8. Third party receipts and payments
9. Time period for making import payment
10. Advance payment for exports and imports and delayed
payment for imports
11. Import of gold and silver
12. Import not materialised
13. Unrealised exports
14. Export of goods and services against repayment of State
credits
15. Project Export
16. Merchanting Trade Transaction (MTT)
17. International Trade Invoicing and Settlement in Indian
Rupees (INR)
18. Reporting
19. Internal Policy and Standard Operating Procedure (SOP)
for handling transactions Annex – Export Declaration Form
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The Reserve Bank of India has issued the Foreign Exchange Management (Export and
Import of Goods and Services) Regulations, 2026, replacing the
2015 export regulations.
·
The new regulations will come into force on October 1, 2026,
providing a consolidated framework covering both exports and imports of goods and
services, including software.
·
They introduce a unified Export Declaration Form (EDF)
for goods and services, with defined timelines for submission and electronic
filing through EDI systems.
·
The regulations specify time limits for realization and
repatriation of export proceeds—generally 15 months (18 months
where invoiced/settled in INR)—with flexibility for authorised dealers (ADs) to
grant extensions.
·
Provisions cover advance payments, set-off of export
receivables against import payables, third-party receipts/payments, merchanting
trade transactions, and project exports, strengthening
compliance and monitoring.
·
Authorised Dealers are required to maintain
robust internal policies,
SOPs, and reporting through EDPMS/IDPMS and FETERS, enhancing
transparency and regulatory oversight in foreign trade transactions.
[Notification No.
FEMA 23(R)/2026-RB 13 January, 2026]
In exercise of the powers conferred by
Section 7, Section 8, sub-section (6) of Section 10 and sub-section (2) of
Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in
supersession of the Foreign Exchange Management (Export of Goods &
Services) Regulations, 2015 (Notification No. FEMA 23(R)/2015-RB dated January
12, 2016), except in respect of things done or omitted to be done before such
supersession, Reserve Bank of India makes the following Regulations, namely:
1. Short title and commencement.-
(1) These Regulations
may be called the Foreign Exchange Management (Export and Import of Goods and
Services) Regulations, 2026.
(2) These regulations shall come into
force from October 01, 2026.
2. Definitions.-
(1) In these
Regulations, unless the context requires otherwise, -
(a) “Act” means the Foreign Exchange
Management Act, 1999 (42 of 1999);
(b) “Authorised Dealer” means a person
authorised as an authorised dealer under sub- section (1) of Section 10 of the
Act;
(c) “Export Declaration Form” (EDF)
means the form given at Annex;
(d) “Project Export” shall have the same
meaning as defined in the Foreign Trade Policy;
(e) “Software” means any computer
programme, database, drawing, design, audio/video signals, any information by
whatever name called in or on any medium other than in or on any physical
medium;
(f) “Specified authority” means: (i) Commissioner of Customs in Domestic Tariff Area (DTA)
and Development Commissioner of Special Economic Zone (SEZ) in SEZ, for goods;
(ii) An Authorised Dealer in DTA and
Development Commissioner of Special Economic Zone (SEZ) in SEZ, for services
other than software; and
(iii) An Authorised Dealer or Software
Technology Parks of India (STPI) in DTA, and Development Commissioner of
Special Economic Zone (SEZ) in SEZ, for software.
Explanation. – For the purpose of these
regulations, ‘services’ shall also include ‘software’.
(2) The words and expressions used but
not defined in these Regulations shall have the same meanings as assigned to
them in the Act or rules or regulations made thereunder.
3. Declaration of exports.-
(1) 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:
Provided that the EDF will be deemed to
be submitted as part of shipping bill for goods exported through Electronic
Data Interchange (EDI) port;
Provided further that a traveller moving
personal effects (which are either accompanied or unaccompanied) from India
shall not be treated as exporter for the purpose of these Regulations.
(2) 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, provided that:
(a) 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;
(b) the exporter of services other than
software, may submit an EDF on or before the date of receipt of payment;
(c) the Authorised Dealer may, on a
request from the exporter citing reasons for delay, extend the period for
submission of the EDF after satisfying itself about the reasonableness of the
request.
(3) 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.
4. Manner of Receipt and Payment.- (1)
The receipts and payments for export and import of goods and services shall be
in the manner specified in the Foreign Exchange Management (Manner of Receipt
and Payment) Regulations, 2023, as amended from time to time.
(2) 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, only after having satisfied itself of the
genuineness of the transaction, 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)1:
Provided that 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.
Alternatively, such declaration may be submitted by an exporter to the
Authorised Dealer on a quarterly basis for bulk closure of entries in EDPMS;
Provided further that in the case of import where the Bill of Entry (for goods)
or invoice (for services) is upto₹10 lakh (or its equivalent in foreign
currency), entry in IDPMS maybe closed based on a declaration from the importer
to the effect that the payment for import has been made either in full or
otherwise. Alternatively, such declaration may be submitted by an importer to
the Authorised Dealer on a quarterly basis for bulk closure of entries in
IDPMS.
5. Time period for realisation of exports.-(1) The amount representing the full
export value (or reduced export value in terms of Regulation 6 of these Regulations)of goods and services shall be realised
(including by way of set off in terms of Regulation 7 of these Regulations)and repatriated by the exporter within the
period specified below:
(a) fifteen months from the date of
shipment in case of goods (other than goods exported to a warehouse outside
India) and from the date of invoice in case of services;
(b) fifteen months from the date of sale
of goods from the warehouse in case of goods exported to a warehouse outside
India;
(c) as per payment terms of the
contract, in case of project exports: Provided that 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 eighteen months,
from the date of shipment in case of goods (other than goods exported to aware house outside India), from the date of invoice in
case of services, and from the date of sale of goods in case of goods exported
to a warehouse outside India; Provided further that the Authorised Dealer may,
on request by an exporter citing reasons for the delay, allow extension of time
for realisation of export proceeds beyond the specified period, if the
Authorised Dealer is satisfied of the reasons cited.
(2) An Authorised Dealer shall put in
place systems and processes to monitor and followup
with an exporter to realise export proceeds within the period specified above.
1EDPMSand IDPMS shall also refer to any other system
specified by RBI, for the purpose.
6. 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, provided the Authorised Dealer is satisfied of the
reasons cited:
Provided that 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.
7. Set off of export receivables against
import payables.- 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.
8. Third party receipts and payments.- An
Authorised Dealer may permit third party (other than the parties undertaking
export and import) receipts and payments for export and import transactions
provided that the Authorised Dealer is satisfied with the bonafides
of the transactions.
9. Time period for making import payment.- An
Authorised Dealer shall monitor its IDPMS entries and follow up with the
respective importer for making payment for its imports within the period
specified in the underlying contract:
Provided that the Authorised Dealer may,
on request from the importer citing reasons for the delay, allow extension of
time for making payment, beyond the period specified in the contract, if the
Authorised Dealer is satisfied of the reasons cited.
10. Advance payment for exports and
imports and delayed payment for imports.- (1) 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.
(2) 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.
(3) An Authorised Dealer may permit
advance remittance for import after satisfying itself of the genuineness of the
requirement for advance remittance. The Authorised Dealer may consider
specifying thresholds for advance payment, beyond which, the payment may
require a standby Letter of Credit or a guarantee.
(4) 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, as amended from time to time.
11. Import of gold and silver.- Save
as otherwise provided in the Act, Rules, Regulations or Directions made there
under, and notwithstanding the provisions of these Regulations, no advance
remittance shall be permitted by an Authorised Dealer for the import of gold or
silver.
12. Import not materialised.-
(1) 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.
(2) 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 in terms of Regulation 18(1)(j), 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.
13. Unrealised exports.-
If the export proceeds
of an exporter remain unrealised for a period beyond one 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.
14. Export of goods and services against
repayment of State credits.- For the implementation of the provisions
of the Inter banking arrangement, an Authorised Dealer shall adhere to
instructions and directions issued by the Reserve Bank from time to time on
export of goods and services against repayment of State credits granted by the
erstwhile Soviet Union.
15. Project Export.-
(1) An Authorised
Dealer may permit receipts/ payments for project exports as per the underlying
contract, after satisfying itself of the genuineness of the project.
(2) Subject to monitoring by an
Authorised Dealer, 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 one year or less) including
in treasury bills and in deposits with banks, outside India.
16. Merchanting Trade Transaction (MTT).- (1)
A person undertaking Merchanting Trade, in accordance with the Foreign Trade
Policy, shall ensure that:
(a) the period between the outward
remittance and inward remittance or vice versa does not exceed six months:
Provided that the Authorised Dealer may,
on request citing reasons for delay, allow extension of time, if the Authorised
Dealer is satisfied of the reasons cited.
(b) outward remittances are sent only to
the overseas seller and inward remittances are received only from the overseas
buyer:
Provided that the Authorised Dealer may,
on request from the customer citing reasons, allow receipt from and/ or payment
to any third party, if the Authorised Dealer is satisfied of the reasons cited.
(c) the documents evidencing the MTT are
provided to the Authorised Dealer, to establish the genuineness of the
transactions.
(2) An Authorised Dealer shall:
(a) credit or debit the account of its
customer for any cross-border transaction related to MTT after having been
satisfied with the genuineness of the same and shall, simultaneously close or
update the respective entry in EDPMS and/or IDPMS.
(b) monitor and follow-up with the
person undertaking merchant trading to ensure that both the legs of the
transaction are completed within the period and manner as specified in these
Regulations.
17. International Trade Invoicing and
Settlement in Indian Rupees (INR).- The Authorised Dealer may be guided by
the extant guidelines on the broad framework as well as instructions issued by
the Reserve Bank in this regard, from time to time.
18. Reporting.-
(1) EDPMS (Export Data
Processing and Monitoring System) and IDPMS (Import Data Processing and
Monitoring System) -
An Authorised Dealer:
(a) shall enter details of EDF (of its
customers) as received from non-EDI (Electronic Data Interchange) port in EDPMS
within five working days of receipt of EDF.
(b) shall enter details of EDF of
service (of its customers) in EDPMS within five working days of receipt of EDF
from an exporter.
(c) shall enter details of import (of
its customers) as received from non-EDI port in IDPMS within five working days
of receipt of documents.
(d) shall enter details of import of
service, in IDPMS, as declared and submitted by the importer, within five
working days of receipt of documents.
(e) shall enter details of inward and
outward remittances for all exports, imports and Merchanting Trade Transactions
(MTT) in EDPMS and/ or IDPMS.
(f) shall monitor all transactions in
EDPMS and IDPMS for closure of outstanding entries and follow-up with an
exporter, an importer and person undertaking MTT for submission of documents
for the same.
Mark-off/closure of entries:
(g) shall in the case of an export,
mark-off the entry in EDPMS after ensuring that the export value has been
realised.
(h) shall in the case of an import,
mark-off the entry in IDPMS after ensuring that the payment for the import has
been made.
(i) may on
request by an exporter citing reasons, close the entry relating to export
advance transactions in EDPMS, where no export has been made and where refund
of such advance is not possible, after having been satisfied of the genuineness
of the reasons cited.
(j) may on request by an importer citing
reasons, close the entry relating to import advance transactions in IDPMS,
where no import has taken place and where repatriation of such advance is not
possible, after having been satisfied of the genuineness of the reasons cited.
(k) may on the request of importer,
close the entry in IDPMS where import transaction has been settled at reduced
value, after having been satisfied of the genuineness of the reasons cited.
(l) shall in the case of an MTT, close
or update the respective entry in EDPMS and IDPMS after making the receipt and
payment for both legs of the MTT.
(2) An Authorised Dealer shall report
all foreign trade transactions in Foreign Exchange Transaction Electronic
Reporting System (FETERS) in terms of extant guidelines issued by the Reserve
Bank from time to time.
19. Internal Policy and Standard
Operating Procedure (SOP) for handling transactions.- (1) An Authorised Dealer shall put in
place a separate, comprehensive, well-documented internal policy and SOP, for
handling transactions (including the reporting thereof) related to export and
import of goods and services as well as MTT, in accordance with the Act, and
Rules, Regulations and Directions issued thereunder. The policy should at least
include the following:
(a) List of documents, timelines and
charges for each process and approval.
(b) Extension of the time-period for
export realisation and repatriation / import payments.
(c) Adjustment (under, over and
non-realisation) of export proceeds to be realised and repatriated.
(d) Advance receipts for exports and
advance payments for imports.
(e) Delegation of powers for internal
approvals for each process.
(f) Export factoring and import
factoring.
(2) While laying down internal policy
and SOP, an Authorised Dealer shall ensure that the responsibility for
approving transactions is clearly delegated across internal levels. The policy
and SOP shall also have an escalation process for handling customer grievances
and an appeal mechanism wherein the appeal is handled at a higher internal
level. The higher internal level should take a final decision based on the
genuineness of the submissions made by the customer.
(3) An Authorised Dealer shall ensure
that the charges levied for handling transactions and associated processes are
reasonable and proportional to the services rendered. An Authorised Dealer
shall not levy any charges or penalty on its constituent (exporter or importer
or merchant trader) for any regulatory delay/violation by the constituent.
(4) An Authorised Dealer shall disclose
policy and the main features of the SOP on its website.
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Annex Export Declaration Form |
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1. General Information: |
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Type of export
: Goods/Service |
Form No: |
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Shipping Bill No. & Date: |
Mode of Transport/Delivery: [ ] Air [ ] Land |
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Category of Exporter: [ ] Custom (DTA units) [ ] SEZ [ ] 100% EOU [ ] Warehouse export
[ ] others (Specify)....... |
AD code: |
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IE Code: GSTIN: PAN: |
AD Name & Address: |
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Exporters Name & Address: |
Mode of Realisation : [ ] L/C [ ] BG [
] Others (advance payment, etc. including transfer/remittance to bank
a/c maintained overseas ) |
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Consignee Name & Address: |
Port of Loading / Source Port in
case of SEZ : |
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Third Party name & Address
(In case of third Party Payments for Exports) Relationship between Exporter
& Third Party: |
Country of Final Destination: |
Port of Discharge: |
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Name of the AD and AD code, in
case of LC/BG |
Date of Let Export order (LEO): |
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Description of Goods/Services: |
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Total FOB/Services value in words
(INR): |
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2A. Details of Export Value^ of
Goods (This part shall be repeated for each invoice drawn under a shipping
bill) |
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Client Name & Address: |
Invoice No. Invoice date. Invoice Currency: Invoice Amount: Contract No. and Date: |
Nature of payment in terms of
Contract: [ ] FOB [ ] CIF [ ] C&F [ ] CI [ ] periodical [ ] milestone [ ] advance [ ] others HSN/Service Accounting Codes
(SAC): |
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Particulars |
Currency |
Amount |
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FOB/Services Value |
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Freight/Transmission |
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Insurance |
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Commission |
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Discount |
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Other Deduction |
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Packing Charges |
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Full export value / Net Realisable export value |
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2B. Details of Export Value^ of
Services |
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Details of services provided to
multiple recipients |
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S. No. |
Service recipient Name &
Address |
Country |
Details of Invoice |
Net Realisable
value |
Contract No., if any, and Date |
Description of services |
SAC Code |
Remarks |
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No. |
Date |
Currency |
Amount |
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3. Applicable for Export under
FPO/Couriers |
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Name of the Foreign post
Office/Courier: Number & date of Parcel
receipts: |
Stamp & Signature of Authorised Dealer |
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4. Declaration by the Exporters
(All types of exports) |
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I /We hereby declare that I/we
@am/are the seller/consignor of the goods/ provider of services in respect of
which this declaration is made and that the particulars given above are true
and that the value to be received from the buyer/third party represents the
export value^ contracted and declared above. I/We undertake that I/we have
delivered/ will deliver to the authorised dealer
named above the foreign exchange / Indian Rupees representing the full value
of the goods/services exported as above on or before........................
(i.e. within the period of realisation stipulated
by RBI from time to time) in the manner specified in the Regulations made
under the Foreign Exchange Management Act, 1999. I/We also undertake to submit the
documents pertaining to exports declared in this form, to the Authorised Dealer named above, as may be required under
the Act. Date: (Signature
of Exporter) |
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5. Space for use of Specified
Authority (Custom/SEZ/AD/STPI): |
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Certified, on the basis of above
declaration at 4, that the goods/services described above and the export
value^ declared by the exporter in this form is as per the corresponding
invoice/gist of invoices submitted and declared by the exporter. Date: (Signature
of Designated/Authorised officials of Custom /SEZ/ Authorised Dealer/STPI) |
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1. @ Strike out whichever is
not applicable.
2. ^ 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 in overseas market.
3. Export value may be
indicated as nil in case the goods are sent without any consideration.