In exercise of the powers conferred by clause (a)
of sub-section (1), sub-section (3) of Section 7 and sub-section (2) of Section
47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in
supersession of its Notification No.FEMA.23/2000-RB dated May 3, 2000 as
amended from time to time, Reserve Bank of India makes the following
Regulations in respect of Export of Goods and Services from India , namely: (i) These
Regulations may be called the Foreign Exchange Management (Export of Goods and
Services) Regulations, 2015. (ii) They
shall come into force from the date of their publication in the Official
Gazette. In these
Regulations, unless the context requires otherwise, (i) 'Act'
means the Foreign Exchange Management Act, 1999 (42 of 1999); (ii) 'authorised
dealer' means a person authorised as an authorised dealer under sub-section (1)
of section 10 of the Act, and includes a person carrying on business as a
factor and authorised as such under the said section 10 ; (iii) 'EXIM
Bank' means the Export-Import Bank of India established under the Export-Import
Bank of India Act, 1981 (28 of 1981); (iv) 'export'
includes the taking or sending out of goods by land, sea or air, on consignment
or by way of sale, lease, hire-purchase, or under any other arrangement by
whatever name called, and in the case of software, also includes transmission
through any electronic media ; (v) 'export
value' in relation to export by way of lease or hire-purchase or under any
other similar arrangement, includes the charges, by whatever name called,
payable in respect of such lease or hire-purchase or any other similar
arrangement; (vi) 'form'
means form annexed to these Regulations; (vii) 'schedule'
means schedule appended to these Regulations; (viii) '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; (ix) 'specified
authority' means the person or the authority to whom the declaration as
specified in Regulation 3 is to be furnished; (x) the words
and expressions used but not defined in these Regulations shall have the same
meanings respectively assigned to them in the Act. (1) In case
of exports taking place through Customs manual ports, every exporter of goods
or software in physical form or through any other form, either directly or
indirectly, to any place outside India, other than Nepal and Bhutan, shall
furnish to the specified authority, a declaration in one of the forms set out
in the Schedule and supported by such evidence as may be specified, containing
true and correct material particulars including the amount representing. (i) the full
export value of the goods or software; or (ii) 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 or the software in overseas market, and
affirms in the said declaration that the full export value of goods (whether
ascertainable at the time of export or not) or the software has been or will
within the specified period be, paid in the specified manner. (2) Declarations
shall be executed in sets of such number as specified. (3) For the
removal of doubt, 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
of such export, and to repatriate the same to India in accordance with the
provisions of the Act, and these Regulations, as also other rules and
regulations made under the Act. (4) Realization
of export proceeds in respect of export of goods / software from third party
should be duly declared by the exporter in the appropriate declaration form. Notwithstanding
anything contained in Regulation 3, export of goods / software may be made
without furnishing the declaration in the following cases, namely: (a) trade
samples of goods and publicity material supplied free of payment; (b) personal
effects of travellers, whether accompanied or unaccompanied; (c) ship's
stores, trans-shipment cargo and goods supplied under the orders of
Central Government or of such officers as may be appointed by the Central
Government in this behalf or of the military, naval or air force authorities in
India for military, naval or air force requirements; (d) by way of
gift of goods accompanied by a declaration by the exporter that they are not
more than five lakh rupees in value (e) aircrafts
or aircraft engines and spare parts for overhauling and/or repairs abroad
subject to their reimport into India after overhauling /repairs, within a
period of six months from the date of their export; [1][(ea)
re-export of leased aircraft/helicopter and/or engines/auxiliary power units
(APUs), either completely or in partially knocked down condition re-possessed
by overseas lessor and duly de-registered by the Directorate General of Civil
Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request
Authorisation (IDERA) holder under 'Cape Town Convention' or any other
termination or cancellation of the lease agreement between the lessor and
lessee subject to permission by DGCA/Ministry of Civil Aviation for such
export/s.] (f) goods
imported free of cost on re-export basis; (g) the
following goods which are permitted by the Development Commissioner of the
Special Economic Zones, Electronic Hardware Technology Parks, Software
Technology Parks or Free Trade Zones to be re-exported, namely: (1) imported
goods found defective, for the purpose of their replacement by the foreign
suppliers/collaborators; (2) goods
imported from foreign suppliers/collaborators on loan basis; (3) goods
imported from foreign suppliers/collaborators free of cost, found surplus after
production operations. (ga) goods listed at items (1), (2) and (3) of clause (i) to be
re-exported by units in Special Economic Zones, under intimation to the
Development Commissioner of Special Economic Zones / concerned Assistant
Commissioner or Deputy Commissioner of Customs (h) replacement
goods exported free of charge in accordance with the provisions of Foreign
Trade Policy in force, for the time being. (i) goods
sent outside India for testing subject to re-import into India; (j) defective
goods sent outside India for repair and re-import provided the goods are
accompanied by a certificate from an authorised dealer in India that the export
is for repair and re-import and that the export does not involve any
transaction in foreign exchange. (k) exports
permitted by the Reserve Bank, on application made to it, subject to the terms
and conditions, if any, as stipulated in the permission. The
importer-exporter code number allotted by the Director General of Foreign Trade
under Section 7 of the Foreign Trade (Development & Regulation) Act, 1992
(22 of 1992) shall be indicated on all copies of the declaration forms
submitted by the exporter to the specified authority and in all correspondence
of the exporter with the authorised dealer or the Reserve Bank, as the case may
be. A.
Declaration in Form EDF (1) (i) The
declaration in form EDF shall be submitted in duplicate to the Commissioner of
Customs. (ii)
After duly verifying and authenticating the declaration form, the Commissioner
of Customs shall forward the original declaration form/data to the nearest
office of the Reserve Bank and hand over the duplicate form to the exporter for
being submitted to the authorised dealer. B.
Declaration in Form SOFTEX (i) The
declaration in Form SOFTEX in respect of export of computer software and
audio/video/ television software shall be submitted in triplicate to the
designated official of Ministry of Information Technology, Government of India
at the Software Technology Parks of India (STPIs) or at the Free Trade Zones
(FTZs) or Special Economic Zones (SEZs) in India. (iii) After
certifying all three copies of the SOFTEX form, the said designated official shall
forward the original directly to the nearest office of the Reserve Bank and
return the duplicate to the exporter. The triplicate shall be retained by the
designated official for record. Duplicate
Declaration Forms to be retained with Authorised Dealers On the
realisation of the export proceeds, the duplicate copies of export declaration
forms viz. EDF and SOFTEX [2][and
Exchange Control copies of the shipping bills] and Exchange Control copies of
the shipping bills shall be retained by the Authorised Dealers. The
Commissioner of Customs or the postal authority or the official of Department
of Electronics, to whom the declaration form is submitted, may, in order to
satisfy themselves of due compliance with Section 7 of the Act and these
regulations, require such evidence in support of the declaration as may
establish that - (a) the
exporter is a person resident in India and has a place of business in India; (b) the
destination stated on the declaration is the final place of the destination of
the goods exported; (c) the value
stated in the declaration represents. (1) the full
export value of the goods or software; or (2) where the
full export value of the goods or software 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 the overseas market. Explanation: For
the purpose of this regulation, 'final place of destination' means a place in a
country in which the goods are ultimately imported and cleared through Customs
of that country. Unless
otherwise authorised by the Reserve Bank, the amount representing the full
export value of the goods exported shall be paid through an authorised dealer
in the manner specified in the Foreign Exchange Management (Manner of Receipt
and Payment) Regulations, 2000 as amended from time to time. Explanation: For
the purpose of this regulation, re-import into India, within the period
specified for realisation of the export value, of the exported goods in respect
of which a declaration was made under Regulation 3, shall be deemed to be
realisation of full export value of such goods. (1) The
amount representing the full export value of goods / software/ services
exported shall be realised and repatriated to India within [3][nine
months or within such period as may be specified by the Reserve Bank, in
consultation with the Government, from time to time] from the date of export,
provided (a) that
where the goods are exported to a warehouse established outside India with the
permission of the Reserve Bank, the amount representing the full export value
of goods exported shall be paid to the authorised dealer as soon as it is
realised and in any case within [4][fifteen
months or within such period as may be specified by the Reserve Bank, in
consultation with the Government, from time to time] from the date of shipment
of goods; (b) further
that the Reserve Bank, or subject to the directions issued by that Bank in this
behalf, the authorised dealer may, for a sufficient and reasonable cause shown,
extend the [5][said period]. (2) (a) Where
the export of goods / software / services has been made by Units in Special
Economic Zones (SEZ) / Status Holder exporter / Export Oriented Units (EOUs)
and units in Electronics Hardware Technology Parks (EHTPs), Software Technology
Parks (STPs) and Bio-Technology Parks (BTPs) as defined in the Foreign Trade
Policy in force, then notwithstanding anything contained in sub-regulation (1),
the amount representing the full export value of goods or software shall be
realised and repatriated to India within [6][nine
months or within such period as may be specified by the Reserve Bank, in
consultation with the Government, from time to time] from the date of export. Provided
further that the Reserve Bank, or subject to the directions issued by the Bank
in this behalf, the authorised dealer may, for a sufficient and reasonable
cause shown, extend the [7][said
period]. (b) The
Reserve Bank may for reasonable and sufficient cause direct that the said
exporter/s shall cease to be governed by sub-regulation (2); Provided
that no such direction shall be given unless the unit has been given a
reasonable opportunity to make a representation in the matter. (c) On
such direction, the said exporter/s shall be governed by the provisions of
sub-regulation (1), until directed otherwise by the Reserve Bank.' Explanation: For
the purpose of this regulation, the "date of export" in relation to
the export of software in other than physical form, shall be deemed to be the
date of invoice covering such export. The
documents pertaining to export shall be submitted to the authorised dealer
mentioned in the relevant export declaration form, within 21 days from the date
of export, or from the date of certification of the SOFTEX form: Provided that,
subject to the directions issued by the Reserve Bank from time to time, the
authorized dealer may accept the documents pertaining to export submitted after
the expiry of the specified period of 21 days, for reasons beyond the control
of the exporter. Without
prejudice to Regulation 3, an authorised dealer may accept, for negotiation or
collection, shipping documents including invoice and bill of exchange covering
exports, from his constituent (not being a person who has signed the declaration
in terms of Regulation 3): Provided
that before accepting such documents for negotiation or collection, the
authorised dealer shall - (a) where the
value declared in the declaration does not differ from the value shown in the
documents being negotiated or sent for collection, or (b) where the
value declared in the declaration is less than the value shown in the documents
being negotiated or sent for collection, require the constituent concerned also
to sign such declaration and thereupon such constituent shall be bound to
comply with such requisition and such constituent signing the declaration shall
be considered to be the exporter for the purposes of these Regulations to the
extent of the full value shown in the documents being negotiated or sent for collection
and shall be governed by these Regulations accordingly. In
respect of export of any goods or software for which a declaration is required
to be furnished under Regulation 3, no person shall except with the permission
of the Reserve Bank or, subject to the directions of the Reserve Bank,
permission of an authorised dealer, do or refrain from doing anything or take
or refrain from taking any action which has the effect of securing - (i) that the
payment for the goods or software is made otherwise than in the specified
manner; or (ii) that the
payment is delayed beyond the period specified under these Regulations; or (iii) that the
proceeds of sale of the goods or software exported do not represent the full
export value of the goods or software subject to such deductions, if any, as
may be allowed by the Reserve Bank or, subject to the directions of the Reserve
Bank, by an authorised dealer; Provided
that no proceedings in respect of contravention of these provisions shall be
instituted unless the specified period has expired and payment for the goods or
software representing the full export value, or the value after deductions
allowed under clause (iii), has not been made in the specified manner within
the specified period. (iv) Export of
services to which no Form specified in these Regulations apply, the exporter
may export such services without furnishing any declaration, (i), (ii) &
(iii) above shall apply. Exports
under trade agreement/rupee credit etc. (i) Export of
goods under special arrangement between the Central Government and Government
of a foreign state, or under rupee credits extended by the Central Government
to Govt. of a foreign state shall be governed by the terms and conditions set
out in the relative public notices issued by the Trade Control Authority in
India and the instructions issued from time to time by the Reserve Bank. (ii) An export
under the line of credit extended to a bank or a financial institution operating
in a foreign state by the Exim Bank for financing exports from India, shall be
governed by the terms and conditions advised by the Reserve Bank to the
authorised dealers from time to time. Where in
relation to goods or software export of which is required to be declared on the
specified form and export of services, in respect of which no declaration forms
has been made applicable, the specified period has expired and the payment
therefor has not been made as aforesaid, the Reserve Bank may give to any
person who has sold the goods or software or who is entitled to sell the goods
or software or procure the sale thereof, such directions as appear to it to be
expedient, for the purpose of securing, (a) the payment
therefor if the goods or software has been sold and (b) the sale
of goods and payment thereof, if goods or software has not been sold or
reimport thereof into India as the circumstances permit, within such period as
the Reserve Bank may specify in this behalf ; Provided
that omission of the Reserve Bank to give directions shall not have the effect
of absolving the person committing the contravention from the consequences
thereof. (1) Where an
exporter receives advance payment (with or without interest), from a buyer /
third party named in the export declaration made by the exporter, outside
India, the exporter shall be under an obligation to ensure that. (i) the shipment of goods
is made within one year from the date of receipt of advance payment; [8][(ii) the rate of interest, if any, payable on the
advance payment shall not exceed 100 basis points above the London Inter-Bank
Offered Rate (LIBOR) or other applicable benchmark as may be directed by the
Reserve Bank, as the case may be; and] (iii) the documents
covering the shipment are routed through the authorised dealer 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 one year 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 period of one year,
without the prior approval of the Reserve Bank. (2) Notwithstanding
anything contained in clause (i) of sub-regulation (1), an exporter may receive
advance payment where the export agreement itself duly provides for shipment of
goods extending beyond the period of one year from the date of receipt of
advance payment. (1) Without
prejudice to the provisions of Regulation 3 in relation to the export of goods
or software which is required to be declared, the Reserve Bank may, for the
purpose of ensuring that the full export value of the goods or, as the case may
be, the value which the exporter having regard to the prevailing market
conditions expects to receive on the sale of goods or software in the overseas
market, is received in proper time and without delay, by general or special
order, direct from time to time that in respect of export of goods or software
to any destination or any class of export transactions or any class of goods or
software or class of exporters, the exporter shall, prior to the export, comply
with the conditions as may be specified in the order, namely ; (a) that the
payment of the goods or software is covered by an irrevocable letter of credit
or by such other arrangement or document as may be indicated in the order; (b) that any
declaration to be furnished to the specified authority shall be submitted to the
authorised dealer for its prior approval, which may, having regard to the
circumstances, be given or withheld or may be given subject to such conditions
as may be specified by the Reserve Bank by directions issued from time to time. (c) that a
copy of the declaration to be furnished to the specified authority shall be
submitted to such authority or organisation as may be indicated in the order
for certifying that the value of goods or software specified in the declaration
represents the proper value thereof. (2) No
direction under sub-regulation (1) shall be given by the Reserve Bank and no
approval under clause (b) of that sub-regulation shall be withheld by the
Authorised Dealer, unless the exporter has been given a reasonable opportunity
to make a representation in the matter. (1) Where an
export of goods or services is proposed to be made on deferred payment terms or
in execution of a turnkey project or a civil construction contract, the
exporter shall, before entering into any such export arrangement, submit the
proposal for prior approval of the approving authority, which shall consider
the proposal in accordance with the guidelines issued by the Reserve Bank of
India from time to time. (2) In case a
guarantee is required to be given prior to post award approval, the same may be
issued by an authorized dealer bank/ a person resident in India being an
exporting company, for performance of a project outside India, or for availing
of credit facilities, whether fund-based or non-fund based, from a bank or a
financial institution outside India in connection with the execution of such
project, provided that the contract / Letter of Award stipulates such
requirements. Explanation: For
the purpose of this Regulation, 'approving authority' means the EXIM Bank of
India or the authorised dealer (Refer to Regulation 3) Form EDF: To be completed in
duplicate for export from non EDI ports. Form SOFTEX: To be completed in
triplicate for declaration of export of software otherwise than in physical
form, i.e. magnetic tapes/discs, and paper media. [1]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2021, vide Notification No. FEMA-23(R)/(4)/2021-RB,
dated 08.01.2021, for the following:- "2[(ea) re-export of leased
aircraft/helicopter and/or engines/auxiliary power units (APUs) re-possessed by
overseas lessor and duly de-registered by the Directorate General of Civil
Aviation (DGCA) on the request of Irrevocable Deregistration and Export Request
Authorisation (IDERA) holder under 'Cape Town Convention' subject to permission
by DGCA/Ministry of Civil Aviation for such export/s.]" [2]
Inserted by the Foreign Exchange Management (Export of Goods & Services)
(Amendment) Regulations, 2017 vide Notification No. FEMA-23(R)/(1)/2017-RB
dated 23.06.2017. [3]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2020, vide Notification No. FEMA-23(R)/(3)/2020-RB,
dated 31.03.2020, for the following:- "nine months" [4]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2020, vide Notification No. FEMA-23(R)/(3)/2020-RB,
dated 31.03.2020, for the following:- "fifteen months" [5]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2020, vide Notification No. FEMA-23(R)/(3)/2020-RB,
dated 31.03.2020, for the following:- "period of nine months or fifteen
months, as the case may be" [6]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2020, vide Notification No. FEMA-23(R)/(3)/2020-RB,
dated 31.03.2020, for the following:- "nine months" [7]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2020, vide Notification No. FEMA-23(R)/(3)/2020-RB,
dated 31.03.2020, for the following:- "period of nine months" [8]
Substituted by Foreign Exchange Management (Export of Goods and Services)
(Amendment) Regulations, 2021, vide Notification No. FEMA-23(R)/(5)/2021-RB,
dated 08.09.2021, for the following:- "ii) the rate of interest, if any,
payable on the advance payment does not exceed the rate of interest London
Inter-Bank Offered Rate (LIBOR) + 100 basis points and"FOREIGN EXCHANGE MANAGEMENT (EXPORT OF GOODS AND SERVICES)
REGULATIONS, 2015
PREAMBLE