Draft FEMA Rules on Foreign Trade: RBI released revised draft Regulations and Directions under the Foreign Exchange Management Act (FEMA) concerning the export and import of goods and services.
— The key provisions include mandatory submission of the Export Declaration Form (EDF), timelines for realisation of export proceeds (within nine months), and conditions for reduction in export realisation. It also outlines protocols for set-offs between export receivables and import payables, third-party payments, and advance payments for trade. Importers must repatriate advances if imports are not materialised, especially when outstanding exceeds ₹25 crore. Similarly, exporters with unrealised proceeds beyond two years and above the ₹25 crore threshold can proceed only against full advance or irrevocable letters of credit.
— Authorised Dealers are tasked with verifying documents, ensuring timely entries in the Export and Import Data Processing and Monitoring Systems (EDPMS and IDPMS), and monitoring the genuineness of transactions. The draft also introduces structured mechanisms for handling delayed payments, advance remittances, and reporting obligations. The stakeholders comments/ suggestions are invited. (RBI Draft Regulations and Directions Dated 04/04/2025, Draft Notification)