The Reserve Bank of India (RBI) has unveiled new draft regulations for the process of export and import transactions under the Foreign Exchange Management Act (FEMA), 1999. These proposals are outlined in the 'Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2024.'
Every exporter is mandated to submit a declaration specifying the full export value of goods or services to the designated authority within a stipulated timeframe.
Exporters must submit all relevant export documents to the Authorized Dealer (AD) within 21 calendar days from the date of shipment for goods or from the date of invoice for services.
The regulations prescribe that the full export value must be realized and repatriated to India within nine months from the date of shipment for goods or from the date of invoice for services.
The proposed regulations empower AD banks to caution-list exporters who fail to realize the full export value within the specified timeframe. Such caution-listed exporters can only undertake exports against advance payment in full or against an irrecoverable letter of credit.
The regulations restrict advance remittance for the import of gold and silver unless specifically approved by the RBI. The regulations provide flexibility for exporters facing genuine challenges by allowing AD banks to extend the submission period for export documents and the realization period for export proceeds under certain conditions.