Notification No. F.No. FEMA 23(R)/(7)/2025-RB; Dated: 13.11.2025
1. Background
The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, amending provisions under Regulations 9 and 15 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.
The amendments aim to provide greater flexibility to exporters in realising export proceeds and in managing advance payments received against export orders.
2. Key Amendment 1 – Extended Period for Realisation and Repatriation of Export Proceeds
2.1 Earlier Provision
Under Regulation 9, the export value of goods, software, or services was required to be realised and repatriated to India within 9 months from the date of export.
2.2 Revised Provision
The RBI has now extended this period to 15 months, offering exporters additional time for recovery of payments from overseas buyers.
2.3 Applicability
The revised 15-month period also applies to exports made by:
- Units in Special Economic Zones (SEZs),
- Status Holder Exporters,
- Export Oriented Units (EOUs), and
- Units located in Electronics Hardware Technology Parks (EHTPs), Software Technology Parks (STPs), and Bio-Technology Parks (BTPs).
This harmonisation ensures uniformity across all export categories and promotes ease of doing business in international trade.
3. Key Amendment 2 – Extended Time for Shipment Against Advance Payments
3.1 Earlier Provision
Under Regulation 15, when an exporter received an advance payment (with or without interest) from a buyer or third party abroad, the exporter was required to ship the goods within one year from the date of receipt of such advance.
3.2 Revised Provision
The amended regulation now allows exporters up to three years from the date of receipt of advance payment to complete shipment of goods, provided the advance has been declared in the export documentation.
This change provides exporters with greater operational flexibility, especially in cases involving large, complex, or long-term export contracts.
4. Significance
These amendments are expected to:
- Facilitate easier cash flow management for exporters,
- Provide longer timelines for realisation and fulfilment of export obligations,
- Improve India’s export competitiveness, and
- Align export compliance requirements with global trade practices.
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