TaxTMI 
TaxTMI 
TaxTMI 
Master Direction – Export of Goods and Services (Updated as on January 12, 2026)
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....cation No.23(R)/2015-RB dated January 12, 2016. These Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications. 2. Within the contours of the Regulations, Reserve Bank of India also issues directions to Authorised Persons under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act (FEMA), 1999. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/ constituents with a view to implementing the regulations framed. 3. Instructions issued on export of goods and services from India have been compiled in this Master Direction. The list of underlying circulars/ notifications which form the basis of this Master Direction is furnished in the Appendix. Reporting instructions can be found in Master Directions on reporting (Master Direction No. 18 dated January 01, 2016) 4. It may be noted that, whenever necessary, Reserve Bank shall issue directions to Authorised Persons through A.P. (DIR Series) Circulars in regard to any change in the Regulations or the manner in which relative transactions are....
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.....14 Export Bills Register C.15 Follow-up of overdue bills C.16 Reduction in invoice value on account of prepayment of usance bills C.17 Reduction in invoice value in other cases C.18 Change of buyer/consignee C.19 Export of goods by Special Economic Zones (SEZs) C.20 Extension of time C.21 Shipments lost in transit C.22 Export claims C.23 Write-off of unrealised export bills C.24 Write off in cases of payment of claims by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA) C.25 Write-off relaxation C.26 Set-off of export receivables against import payables C.27 Netting-off of export receivables against import payments - Units in (SEZs) C.28 Exporters' Caution List C.29 Omitted C.30 Issuance of Electronic Bank Realisation Certificate (eBRC) C.31 Export Data Processing and Monitoring System (EDPMS) - reconciliation of export entries - Special Procedure Part-D Remittances connected with Export D.1 Agency commission on exports D.2 Refund of export proceeds Appendix PART-A General A.1 Introduction (i) Export trade is regulated by the Directorate General of Foreign Trade (DGFT) and its reg....
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....deducting bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP. (c) Contracts (for which payments are received through Asian Clearing Union (ACU) shall be denominated in ACU Dollar. However, participants in the ACU may settle their transactions in ACU Dollar or in ACU Euro as per RBI Notifications. Central Government may relax provisions of this paragraph in appropriate cases. Export contracts and invoices can be denominated in Indian rupees against EXIM Bank/Government of India line of credit. (d) Invoicing, payment and settlement of exports and imports is also permissible in INR subject to compliances as under RBI's A.P. (DIR Series) Circular No.10 dated 11th July, 2022 read with A.P. (DIR Series) Circular No. 08 dated August 05, 20254. Accordingly, settlement of trade transactions in INR shall take place through the Special Rupee Vostro Accounts opened by AD banks in India as permitted under Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, in accordance to the following procedures: (i) Indian importers undertaking imports through this mechanism shall make payment in INR which....
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....3, 2025, AD banks may allow exporters to realise and repatriate full export value of goods exported to 'Bharat Mart' within nine months from the date of sale of the goods from the warehouse. A.3 Manner of receipt and payment (i) The amount representing the full export value of the goods exported shall be received through an AD Bank in the manner specified in the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2023 notified vide Notification No. FEMA 14(R)/2023-RB dated December 21, 2023. (ii) When payment for goods sold to overseas buyers during their visits is received in this manner, EDF (duplicate) should be released by the AD Category - I banks only on receipt of funds in their Nostro account or if the AD Category - I bank concerned is not the Credit Card servicing bank, on production of a certificate by the exporter from the Credit Card servicing bank in India to the effect that it has received the equivalent amount in foreign exchange, AD Category - I banks may also receive payment for exports made out of India by debit to the credit card of an importer where the reimbursement from the card issuing bank/ organization will be received in foreign excha....
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....or establishing a framework to promote the use of local currencies i.e., Indian Rupee (INR) and Maldivian Rufiyaa (MVR) for bilateral transactions, vide A.P. (DIR) Circular No 22 dated March 17, 2025, it has been decided that India's bilateral trade transactions with Maldives may also be settled in INR and/or MVR in addition to the ACU mechanism, as hitherto. (v) Third party payments for export / import transactions Taking into account the evolving international trade practices, it has been decided to permit third party payments for export / import transactions subject to conditions as under: a) Firm irrevocable order backed by a tripartite agreement should be in place. However, it may not be insisted upon in cases where documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order/ invoice has been produced subject to: (i) AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice / FIRC. (ii) AD bank should consider the FATF statements while handling such transaction. b) Third party payment should be routed through the banking channel only; c) The expo....
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....res. (vii) 13International Trade Settlement in Indian Rupees (INR) a) In order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place with effect from July 11, 2022 an additional arrangement for invoicing, payment, and settlement of exports / imports in INR. Before putting in place this mechanism, AD banks shall require prior approval from the Foreign Exchange Department of Reserve Bank of India, Central Office at Mumbai. b) The broad framework for cross border trade transactions in INR under Foreign Exchange Management Act, 1999 (FEMA) is as delineated below: (i) All exports and imports under this arrangement may be denominated and invoiced in Rupee (INR). (ii) Exchange rate between the currencies of the two trading partner countries may be market determined. (iii) The settlement of trade transactions under this arrangement shall take place in INR in accordance with the procedure laid down in Para c. c) In terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016, AD banks in India have been permitted to open Rupee Vostro Ac....
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....r with facility to make/receive payment of the balance of export receivables/import payables, if any, through the Rupee Payment Mechanism may be allowed, subject to the conditions mentioned in para C.26 on Set-off of export receivables against import payables under Master Direction on Export of Goods and Services 2016 (as amended from time to time). g) Issue of Bank Guarantee for trade transactions, undertaken through this arrangement, is permitted subject to adherence to provisions of Foreign Exchange Management (Guarantees) Regulations, 202614, as amended from time to time and the provisions of Master Direction on Guarantees & Co-acceptances. h) The Rupee surplus balance held may be used for permissible capital and current account transactions in accordance with mutual agreement. The balance in Special Vostro Accounts can be used for: (i) Payments for projects and investments. (ii) Export/Import advance flow management (iii) Investment in Government Treasury Bills, Government securities, etc. in terms of extant guidelines and prescribed limits, subject to FEMA and similar statutory provision. (iv) 15Non-convertible debentures/bonds and commercial papers issued by an Indian ....
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....located in a Special Economic Zone (SEZ) may open, hold and maintain a Foreign Currency Account with an AD Category - I bank in India subject to conditions stipulated in 19Regulation 4 (D) of Foreign Exchange Management (Foreign Currency Accounts by a person Resident in India) Regulations dated January 21, 2016. (v) A person resident in India being a project / service exporter may open, hold and maintain foreign currency account with a bank outside or in India, subject to the standard terms and conditions in the Memorandum PEM. 20(vi) A person resident in India, being an exporter, may open, hold and maintain a Foreign Currency Account with a bank outside India, for realisation of full export value and advance remittance received by the exporter towards export of goods or services. Funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding the end of (a) three months in case of accounts maintained with banks in an International Financial Services Centre; or (b) next month for all other jurisdictions; from the date of receipt of the funds after adjusting for forward commitments, provided th....
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....d commitments. b) The facility of EEFC scheme is intended to enable exchange earners to save on conversion/transaction costs while undertaking forex transactions. This facility is not intended to enable exchange earners to maintain assets in foreign currency, as India is still not fully convertible on Capital Account. (v) The eligible credits represent - a) inward remittance received through normal banking channel, other than the remittance received pursuant to any undertaking given to the Reserve Bank or which represents foreign currency loan raised or investment received from outside India or those received for meeting specific obligations by the account holder. b) payments received in foreign exchange by a 100 per cent Export Oriented Unit or a unit in Export Processing Zone, Software Technology Park or Electronic Hardware Technology Park for supply of goods to similar such unit or to a unit in Domestic Tariff Area and also payments received in foreign exchange by a unit in Domestic Tariff Area for supply of goods to a unit in Special Economic Zone (SEZ); (vi) AD Category - I banks may permit their exporter constituents to extend trade related loans/ advances to overseas im....
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....essel or vehicle has to pass before crossing over to the foreign territory. For this purpose, exporter may arrange either to give the form to the person in charge of the vessel or vehicle or forward it to his agent at the border for submission to Customs. (ii) As regards exports by rail, Customs staff has been posted at certain designated railway stations for attending to Customs formalities. They will collect the EDF for goods loaded at these stations so that the goods may move straight on to the foreign country without further formalities at the border. The list of designated railway stations can be obtained from the Railways. For goods loaded at stations other than the designated stations, exporters must arrange to present EDF to the Customs Officer at the Border Land Customs Station where Customs formalities are completed. A.9 Border trade with Myanmar In supersession of instructions contained in A.P. (DIR Series) Circular No. 17 dated October 16, 2000, barter system of trade at the Indo-Myanmar border has been discontinued and replaced with normal trade with effect from December 1, 2015. Accordingly, all trade transactions with Myanmar, including those at the Indo-Myanmar b....
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....port Factor may close the export bills and report the same in the Export Data Processing and Monitoring System (EDPMS) of the Reserve Bank of India. * In case of single factor, not involving Import Factor overseas, the Export Factor may obtain credit evaluation details from the correspondent bank abroad. * KYC and due diligence on the exporter shall be ensured by the Export Factor. A.14 Project Exports and Service Exports (i) Export of engineering goods on deferred payment terms and execution of turnkey projects and civil construction contracts abroad are collectively referred to as 'Project Exports'. Indian exporters are required to obtain the approval of the AD Category - I banks/ Exim Bank at post-award stage before undertaking execution of such contracts. Regulations relating to 'Project Exports' and 'Service Exports' are laid down in the revised Memorandum of Instructions on Project and Service Exports (PEM-July 2014). (ii) Accordingly, AD banks / Exim Bank may consider awarding post-award approvals without any monetary limit and permit subsequent changes in the terms of post award approval within the relevant FEMA guidelines / regulations. Project and service exporters....
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....Exporters should apply for necessary permission, through an AD Category - I banks, to the Regional Office concerned of the Reserve Bank, giving full particulars of the goods to be exported. A.16 Export on elongated credit terms Exporters intending to export goods on elongated credit terms may submit their proposals giving full particulars through their banks for consideration to the Regional Office concerned of the Reserve Bank. A.17 Export of Currency In terms of Foreign Exchange Management (Export and Import of Currency) Regulations, 2015 notified vide Notification No. FEMA 6 (R)/2015-RB dated December 29, 2015, permission of Reserve Bank is required for any export of Indian currency except to the extent permitted under any general permission granted under the Regulations as under: (i) Any person resident in India may take outside India (other than to Nepal and Bhutan) currency notes of Government of India and Reserve Bank of India up to an amount not exceeding Rs.25,000 (Rupees twenty five thousand only); and (ii) Any person resident outside India, not being a citizen of Pakistan and Bangladesh and also not a traveler coming from and going to Pakistan or Bangladesh, and vi....
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....ll is integrated with EDPMS, requirement of submission of EC copy of shipping bill with the AD bank would not be there. (iii) The manner of disposal of EC copy of Shipping Bill shall be the same as that for EDF. The duplicate copy of the form together with a copy of invoice etc. shall be retained by ADs and may not be submitted to the Reserve Bank. The question of disposal of EC copy of shipping bill will, however, not arise where EC copy of shipping bill is not printed in terms of CBEC's Circular No.55/2016-Customs dated November 23, 2016 and data of shipping bill is integrated with EDPMS. Note: - In cases where ECGC/private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA) initially settles the claims of exporters and the export proceeds are subsequently received from the buyer/buyer's country, the share of exporters in the amount so received is disbursed through the AD which had handled the shipping documents post receipt of certificate issued by ECGC/ private insurance companies. The certificate will indicate the number of declaration form, name of the exporter, name of the AD, date of negotiation, bill number, invoice value and the amount....
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....ard has been rationalised in consultation with the Government of India as outlined below should be followed by the exporter in conformity with Regulation 3 of Notification No.FEMA.23 (R)/2015-RB dated January 12, 2016. a) The exporters may submit the EDF, duly signed by the Master of the vessel in lieu of Custom certification, indicating the composition of the catch, quantity, export value, date of shipment (date of transfer of catch), etc duly supported by a certificate from an international cargo surveyor. b) Bill of Lading / receipt of trans-shipment issued by the carrier vessel should include the EDF Number. c) The prescribed period of realization and repatriation should be reckoned with reference to the date of transfer of catch as certified by the Master of the vessel or the date of the invoice, whichever is earlier. d) The EDF, both original and duplicate, should indicate the number and date of Letter of Permit issued by Ministry of Agriculture for operation of the vessel. e) The exporter will complete the EDF in duplicate and both the copies may be submitted to the Customs at the registered port of the vessel or any other port as approved by Ministry of Agriculture. ED....
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....ct of export of computer software and audio / video / television software to the designated official concerned of the Government of India at STPI / EPZ /FTZ /SEZ for valuation / certification not later than 30 days from the date of invoice / the date of last invoice raised in a month, as indicated above. The designated officials may also certify the SOFTEX Forms of EOUs, which are registered with them. d) The invoices raised on overseas clients as at (a) to (c) above will be subject to valuation of export declared on SOFTEX form by the designated official concerned of the Government of India and consequent amendment made in the invoice value, if necessary. B.6 Citing of specific identification numbers In all applications / correspondence with the Reserve Bank, the specific identification number as available on the EDF and SOFTEX forms should invariably be cited. B.7 Export of Services it is clarified that, in respect of export of services to which none of the Forms specified in these Regulations apply, the exporter may export such services without furnishing any declaration, but shall be liable to realise the amount of foreign exchange which becomes due or accrues on account o....
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.... banks may accept Forwarder's Cargo Receipts (FCR) issued by IATA approved agents, in lieu of bills of lading, for negotiation / collection of shipping documents, in respect of export transactions backed by letters of credit, if the relative letter of credit specifically provides for negotiation of this document, in lieu of bill of lading even if the relative sale contract with the overseas buyer does not provide for acceptance of FCR as a shipping document, in lieu of bill of lading b) Further, Authorized Dealers may, at their discretion, also accept FCR issued by Shipping companies of repute/IATA approved agents (in lieu of bill of lading), for purchase/discount/collection of shipping documents even in cases, where export transactions are not backed by letters of credit, provided their 'relative sale contract' with overseas buyer provides for acceptance of FCR as a shipping document in lieu of bill of lading. However, the acceptance of such FCR for purchase/discount would purely be the credit decision of the bank concerned who, among others, should satisfy itself about the bona fides of the transaction and the track record of the overseas buyer and the Indian supplier si....
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....does not exceed London Inter-Bank Offered Rate (LIBOR)/ 27any other widely accepted / Alternative reference rate + 100 basis points; and the documents covering the shipment are routed through the AD Category - I bank through whom the advance payment is received. Provided that in the event of the exporter's inability to make the shipment, partly or fully, within three years26 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 said period of three years26, without the prior approval of the Reserve Bank. 28EDPMS will capture the details of advance remittances received for exports in EDPMS. Henceforth, AD Category - I banks will have to report all the inward remittances including advance as well as old outstanding inward remittances received for export of goods/ software to EDPMS. Further, AD Category - I banks need to report the electronic FIRC to EDPMS wherever such FIRCs are issued against inward remittances. The quarterly return being submitted for delay in utilization of advances received for export stands discontinued. (2) AD Category- I ....
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....favor of overseas buyer should not be discounted by the overseas branch / subsidiary of bank in India. Note: AD Category - I banks may also be guided by the Master Circular on Guarantees and Co-acceptances issued by Department of Banking Regulation. (xii) AD Category - I banks may allow the purchase of foreign exchange from the market for refunding advance payment credited to EEFC account only after utilizing the entire balances held in the exporter's EEFC accounts maintained at different branches/banks. (3) AD Category- I banks may allow exporters to receive advance payment for export of goods which would take more than three years29 to manufacture and ship and where the 'export agreement' provides for shipment of goods extending beyond the period of three years29 from the date of receipt of advance payment subject to the following conditions:- (i) The KYC and due diligence exercise has been done by the AD Category - I bank for the overseas buyer; (ii) Compliance with the Anti-Money Laundering standards has been ensured; (iii) The AD Category-I bank should ensure that export advance received by the exporter should be utilized to execute export and not for any other purpose i....
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....items for display or display-cum-sale in trade fairs/exhibitions outside India subject to the following: (i) The exporter shall produce relative Bill of Entry within one month of re-import into India of the unsold items. (ii) The exporter shall report to the AD Category - I banks the method of disposal of all items exported, as well as the repatriation of proceeds to India. (iii) Such transactions approved by the AD Category - I banks will be subject to 100 per cent audit by their internal inspectors/auditors. C.4 EDF approval for export of goods for re-imports (i) AD Category - I banks may consider request from exporters for granting EDF approval in cases where goods are being exported for re-import after repairs / maintenance / testing / calibration, etc., subject to the condition that the exporter shall produce relative Bill of Entry within one month of re-import of the exported item from India. (ii) Where the goods being exported for testing are destroyed during testing, AD Category - I banks may obtain a certificate issued by the testing agency that the goods have been destroyed during testing, in lieu of Bill of Entry for import. C.5 Re-export of unsold rough diamonds ....
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....t prior approval of the Reserve Bank. Any funds rendered surplus should be repatriated to India. (iii) The details of bank accounts opened in the overseas country should be promptly reported to the AD Bank. (iv) AD Category - I banks may also allow remittances by a company incorporated in India having overseas offices, within the above limits for initial and recurring expenses, to acquire immovable property outside India for its business and for residential purpose of its staff. (v) The overseas office / branch of software exporter company/firm may repatriate to India 100 per cent of the contract value of each 'off-site' contract. (vi) In case of companies taking up 'on site' contracts, they should repatriate the profits of such 'on site' contracts after the completion of the said contracts. (vii) An audited yearly statement showing receipts under 'off-site' and 'on-site' contracts undertaken by the overseas office, expenses and repatriation thereon may be sent to the AD Category - I banks. (2) In terms of A.P.(DIR Series) Circular No 03 dated April 23, 2025, AD banks may allow remittances by the Indian exporter for initial as well as recurring expenses for setup and continui....
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....s submitted to the AD banks for monitoring purposes, by the exporters within 21 days from the date of shipment of export. 31(iii) AD Category - I banks may regularize cases of dispatch of shipping documents by the exporter direct to the consignee or his agent resident in the country of the final destination of goods, irrespective of the value of export shipment, subject to the following conditions: a) The export proceeds have been realised in full except for the amount written off, if any, in accordance with the extant provisions for write off. b) The exporter is a regular customer of AD Category - I bank for a period of at least six months. c) The exporter's account with the AD Category - I bank is fully compliant with the Reserve Bank's extant KYC / AML guidelines. d) The AD Category - I bank is satisfied about the bonafides of the transaction. In case of doubt, the AD Category - I bank may consider filing Suspicious Transaction Report (STR) with FIU_IND (Financial Intelligence Unit in India). C.11 Part Drawings/ Undrawn Balances (i) In certain lines of export trade, it is the practice to leave a small part of the invoice value undrawn for payment after adjustment due to ....
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....oks as deduction from the export proceeds in the Account Sales. C.13 Opening / hiring of warehouses abroad (1) AD Category - I banks may consider the applications received from exporters and grant permission for opening / hiring warehouses abroad subject to the following conditions: (i) Applicant's export outstanding does not exceed 5 per cent of exports made during the previous financial year. (ii) Applicant has a minimum export turnover of USD 100,000/- during the last financial year. (iii) Period of realization should be as applicable. (iv) All transactions should be routed through the designated branch of the AD Banks. (v) The above permission may be granted to the exporters initially for a period of one year and renewal may be considered subject to the applicant satisfying the requirement above. (vi) AD Category - I banks granting such permission/approvals should maintain a proper record of the approvals granted. (2) In terms of A.P.(DIR Series) Circular No 03 dated April 23, 2025, AD banks may allow Opening/hiring of a warehouse in 'Bharat Mart' by an Indian exporter with a valid Importer Exporter Code, without any pre-conditions, after verifying the reasonableness o....
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....s to be reduced for any reason, AD Category - I banks may approve such reduction, if satisfied about genuineness of the request, provided: a) The reduction does not exceed 25 per cent of invoice value: b) It does not relate to export of commodities subject to floor price stipulations c) The exporter is not on the exporters' caution list of the Reserve Bank, d) The exporter is advised to surrender proportionate export incentives availed of, if any. (ii) In the case of exporters who have been in the export business for more than three years, reduction in invoice value may be allowed, without any percentage ceiling, subject to the above conditions as also subject to their track record being satisfactory, i.e., the export outstanding do not exceed 5 per cent of the average annual export realization during the preceding three financial years. (iii) For the purpose of reckoning the percentage of export bills outstanding to the average export realizations during the preceding three financial years, outstanding of exports made to countries facing externalization problems may be ignored provided the payments have been made by the buyers in the local currency. C.18 Change of buyer/con....
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....ng extension beyond one year from the date of export, the total outstanding of the exporter does not exceed USD one million or 10 per cent of the average export realizations during the preceding three financial years, whichever is higher. 33 34e) In cases where the exporter has filed suits abroad against the buyer, extension may be granted irrespective of the amount involved / outstanding. (ii) Cases which are not covered by the above instructions would require prior approval from the concerned Regional Office of the Reserve Bank. (iii) Reporting should be done in EDPMS. C.21 Shipments lost in transit (i) When shipments from India for which payment has not been received either by negotiation of bills under letters of credit or otherwise are lost in transit, the AD Category - I banks must ensure that insurance claim is made as soon as the loss is known. (ii) In cases where the claim is payable abroad, the AD Category - banks must arrange to collect the full amount of claim due on the lost shipment, through the medium of their overseas branch/correspondent and release the duplicate copy of EDF only after the amount has been collected. (iii) A certificate for the amount of cla....
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....Organization; * The goods exported have been auctioned or destroyed by the Port / Customs / Health authorities in the importing country; * The overseas buyer is not traceable over a reasonably long period of time. * The unrealised amount represents the undrawn balance of an export bill (not exceeding 10% of the invoice value) remaining outstanding and turned out to be unrealizable despite all efforts made by the exporter; * The cost of resorting to legal action would be disproportionate to the unrealised amount of the export bill or where the exporter even after winning the Court case against the overseas buyer could not execute the Court decree due to reasons beyond his control; * Bills were drawn for the difference between the letter of credit value and actual export value or between the provisional and the actual freight charges but the amounts have remained unrealised consequent on dishonor of the bills by the overseas buyer and there are no prospects of realization. C.23.3. Notwithstanding anything contained in para C.23.1 and C.23.2 above, the AD Category-1 bank may, on request of the exporter, write-off unrealised export bills without any limit in respect of cases....
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....ms by ECGC and private insurance companies regulated by Insurance Regulatory and Development Authority (IRDA) (i) AD Category - I banks shall, on an application received from the exporter supported by documentary evidence from the ECGC and private insurance companies regulated by IRDA confirming that the claim in respect of the outstanding bills has been settled by them, write off the relative export bills 36in EDPMS. (ii) Such write-off will not be restricted to the limit of 10 per cent indicated above. (iii) Surrender of incentives, if any, in such cases will be as provided in the Foreign Trade Policy. (iv) The claims settled in rupees by ECGC and private insurance companies regulated by IRDA should not be construed as export realization in foreign exchange. C.25 Write-off - relaxation As announced in the Foreign Trade Policy (FTP), 2015-20, realization of export proceeds shall not be insisted upon under any of the Export Promotion Schemes under the said FTP, subject to the following conditions: a) The write off on the basis of merits is allowed by the Reserve Bank or by AD Category - I bank on behalf of the Reserve Bank, as per extant guidelines; b) The exporter produces....
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....ties, wherever applicable; AD Category - I bank shall ensure compliance with all the regulatory requirement relating to the transactions; AD Category - I bank may seek Auditors/CA certificate wherever felt necessary. Each of the export and import transaction shall be reported separately (gross basis) in FETERS/EDPMS/IDPMS, as applicable. * AD Category - I bank to settle the transaction in E/IDPMS by utilizing the 'set-off indicator' and mentioning the details of shipping bills/bill of entry/invoice details being settled in the remark column (including details of entities involved). C.27 Netting-off of export receivables against import payments - Units in Special Economic Zones (SEZs) AD Category - I banks may allow requests received from exporters for 'netting off' of export receivables against import payments for units located in Special Economic Zones subject to the following: (i) The netting off of export receivables against import payments is in respect of the same Indian entity and the overseas buyer / supplier (bilateral netting) and the netting may be done as on the date of balance sheet of the unit in SEZ. (ii) The details of export of goods are documented in ED....
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....ed conditions given in 2 (a) (i) and (ii), AD banks should not handle the shipping documents of caution listed exporters. (b) AD Category - I banks should obtain prior approval of the Reserve Bank for issuing guarantees for caution-listed exporters. C.29 [Omitted]39 C.30 Issuance of Electronic Bank Realisation Certificate (eBRC) 40AD Category-I banks are required to update the EDPMS with data of export proceeds on "as and when realised basis" and, with effect from October 16, 2017, they are required to generate Electronic Bank Realisation Certificate (eBRC) only from the data available in EDPMS, to ensure consistency of data in EDPMS and consolidated eBRC. C.31 41Export Data Processing and Monitoring System (EDPMS) - reconciliation of export entries - Special Procedure Notwithstanding anything contained in this master direction, AD banks shall adopt the following procedure while closing entries (including outstanding entries) in EDPMS of value equivalent to Rs.10 lakh per entry/bill or less: a. Such entries shall be reconciled and closed based on a declaration provided by the concerned exporter that the amount has been realised. b. Any reduction in declared value or invoice....
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....Category - I banks, through whom the export proceeds were originally realised may consider requests for refund of export proceeds of goods exported from India and being re-imported into India on account of poor quality. While permitting such transactions, AD Category - I banks shall: * Exercise due diligence regarding the track record of the exporter; * Verify the bona-fides of the transactions; * Obtain from the exporter a certificate issued by DGFT / Custom authorities that no export incentive has been availed by the exporter against the relevant export or the proportionate incentives availed, if any, have been surrendered; * Not insist on the requirement of re-import of goods, where exported goods have been auctioned or destroyed by the Port / Customs / Health authorities/ any other accredited agency in the importing country subject to submission of satisfactory documentary evidence. D.2.1. In all other cases AD banks shall ensure that procedures as applicable to normal imports are adhered to and that an undertaking from the exporter, to re-import the goods within three months from the date of refund of export proceeds, shall be obtained. Appendix List of Circulars wh....
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....ircular No. 74 Export Data Processing and Monitoring System (EDPMS) - Additional Modules for caution listing of exporters, reporting of advance remittance for exports and migration of old XOS data May 26, 2016 20 A.P. (DIR Series) Circular No. 04 Export Data Processing and Monitoring System (EDPMS) Issuance of Electronic Bank Realisation Certificate (eBRC) September 15, 2017 21 A.P. (DIR Series) Circular No. 10 Re-export of unsold rough diamonds from Special Notified Zone of Customs without Export Declaration Form (EDF) formality November 22, 2019 22 A.P. (DIR Series) Circular No. 22 Settlement system under Asian Clearing Union (ACU) Mechanism March 17, 2020 23 A.P. (DIR Series) Circular No. 27 Export of Goods and Services- Realisation and Repatriation of Export Proceeds-Relaxation April 01, 2020 24 A.P. (DIR Series) Circular No. 03 Export Data Processing and Monitoring System (EDPMS) Module for 'Caution/De-caution Listing of Exporters' - Review October 09, 2020 25 A.P. (DIR Series) Circular No. 08 External Trade - Facilitation - Export of Goods and Services December 04, 2020 26 A.P. (DIR Series) Circular No. 13 Use of any Alternative reference rate in ....
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....tion No. FEMA 23 (R)(7)/2025-RB dated November 13, 2025 6 Inserted by AP (DIR Series) Circular 27 dated April 01, 2020 7 Inserted by AP (DIR Series) Circular No. 03 dated April 23, 2025 8 omitted 9 Inserted by AP (DIR Series) Circular No. 22 dated March 17, 2020 10 Inserted vide AP (DIR Series) Circular No.09 dated July 08, 2022 11 Inserted by A.P. (DIR Series) Circular No. 22 dated March 17, 2025 12 Inserted by AP (DIR Series) Circular No. 42 dated February 4, 2016 13 Inserted vide AP (DIR Series) Circular No. 10 dated July 11, 2022 14 Modified vide A.P. (DIR Series) Circular No. 19 dated January 12, 2026 15 Inserted by A.P. (DIR Series) Circular No. 14 dated October 03, 2025 16 Inserted by A.P. (DIR Series) Circular No. 08 dated August 05, 2025 17 Inserted by FEM (Foreign Currency Accounts by a person Resident in India) Regulations, 2015 with effect from January 21, 2016. Prior to insertion it read as "Regulation 7(7) of the Foreign Exchange Management (Foreign Currency Accounts by a person Resident in India) Regulations, 2000 notified vide Notification No. FEMA 10/2000-RB dated May 3, 2000" 18 Inserted by FEM (Foreign Currency Accounts by a person Resident in India)....
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....be entitled to export freely exportable items (excluding Gems and Jewellery, Articles of Gold and precious metals) on free of cost basis for export promotion subject to an annual limit of Rupees One Crore or 2% of average annual export realisation during preceding three licensing years, whichever is lower. For export of pharma products by pharmaceutical companies, the annual limit would be 2% of average annual export realisation during preceding three licensing years. In case of supplies of pharmaceutical products, vaccines and lifesaving drugs to health programmes of international agencies such as UN, WHO-PAHO and Government health programmes, the annual limit shall be upto 8% of the average annual export realisation during preceding three licensing years. Such free of cost supplies shall not be entitled to Duty Drawback or any other export incentive under any export promotion scheme." which was inserted Gazette Notification No 23/2015-2020 dated August 23, 2017. 26 Substituted vide Notification No. FEMA 23 (R)(7)/2025-RB dated November 13, 2025 27 Inserted vide AP (DIR Series) Circular No.13 dated September 28, 2021 28 Inserted vide AP (DIR Series) Circular No. 74 dated May 26....