TaxTMI 
TaxTMI 
Request clarification on export.
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....equest clarification on export.<br> Query (Issue) Started By: - Vishal Shrivastava Dated:- 13-7-2026 Last Reply Date:- 19-7-2026 FEMA<br>Got 2 Replies<br>FEMA<br>There is a manufacturer in India who entered into agreement with a Guinean company to export machinery from India to Guinea. As part of the agreement, the payment has to be made at certain times by the Guinean company. However, an issue h....
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....as arisen where the manufacturer has recieved the money in total, but the export has not happened due to ongoing geopolitcal crises. Please let me know if he is in breach of any Indian law due to the ongoing situation, and what advise can be given. The manufacturer advised that he has to submit data on Export Data Processing and Monitoring System (EDPMS). Reply By Sanjeev Agarwal: The Reply....
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....: The manufacturer is not automatically in breach of Indian law merely because the export could not be completed due to geopolitical circumstances. Under the Foreign Exchange Management Act, 1999 (FEMA), exporters are permitted to receive advance payments from overseas buyers, but exports must generally be completed within the timelines prescribed by the Reserve Bank of India (RBI), unless an ext....
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....ension or regularisation is obtained through the Authorised Dealer (AD) Bank. The key compliance issue is EDPMS (Export Data Processing and Monitoring System). Since the export proceeds have been received but no shipping bill has been filed, the transaction will remain outstanding in EDPMS until it is either regularised, completed, or otherwise closed in accordance with RBI directions. Where....
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.... the delay is genuinely attributable to war, civil unrest, sanctions, or other geopolitical events beyond the exporter's control, the situation is generally viewed as a compliance matter rather than an automatic FEMA contravention. The exporter should, however, take prompt action to avoid regulatory issues. Recommended course of action: • Inform the AD Bank immediately of the r....
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....easons for the delay and seek guidance on EDPMS compliance. • Provide documentary evidence of the geopolitical disruption and maintain records of all correspondence with the overseas buyer. • If both parties intend to continue with the transaction, execute an amendment to the contract extending the delivery schedule and request the AD Bank to regularise or extend the expo....
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....rt obligation, where permissible. • If the contract is cancelled, process any refund of the advance through the AD Bank in accordance with RBI requirements rather than unilaterally. If the manufacturer has acted in good faith, maintained adequate documentation, and engages proactively with the AD Bank, the risk of regulatory action is generally low. The primary focus should be on t....
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....imely regularisation of the outstanding EDPMS entry rather than assuming that a breach of FEMA has occurred. Reply By Shilpi Jain: The Reply: As per para C2 of the master direction on exports, export to be made within 3 years of receipt of advance. Else no remittance towards refund of unutilized portion of advance payment or towards payment of interest, shall be made after the expiry of the s....
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....aid period of three years27, without the prior approval of the Reserve Bank. You will have to take approval of RBI, if there is any delay. So better to keep the AD bank informed. <br> Discussion Forum - Knowledge Sharing ....