FEMA UPDATE

> Temporary relaxation in time period of realisation of Export Proceeds-

– The Government of India as well as the Reserve Bank has been receiving representations from Exporters Trade bodies to extend the period of realisation of export proceeds in view of the outbreak of pandemic COVID- 19.

– It has, therefore, been decided, to increase the present period of realization and repatriation of export proceeds, from nine months to fifteen months from the date of export, for the exports made up to or on July 31, 2020.

– The provisions in regard to the period of realization and repatriation to India of the full export value of goods exported to warehouses established outside India remain unchanged.

Source:

A. P. (DIR SERIES 2019-20) Circular No. 27, April 01, 2020

> Normal Provisions for the Period within which export value of goods/software/services to be realized: –

(1) The amount representing the full export value of goods/software/services exported shall be realised and repatriated to India within nine months 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 shall be paid to the authorised dealer as soon as it is realised and in any case within fifteen months from the date of shipment of goods;

b. the authorised dealer may, for a sufficient and reasonable cause shown, extend the period of nine months or fifteen months, as the case may be.

(2) 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, the amount shall be realised and repatriated to India within nine months from the date of export.

Source:

Foreign Exchange Management (Export of Goods and Services) Regulations

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Disclaimer: This document does not contain any expert view or opinion. Please refer source documents for detailed information. We request readers to seek professional advice before arriving at any decision / conclusion after reading of this document. We are not responsible for any loss arising to anyone after referring and relying on this document.

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