[FEMA]Export of Goods and Services-Realisation and Repatriation of Export Proceeds <=12 months

 

As per extant provisions of the FEMA, the amount representing the full export value of goods or software exported should be realised and repatriated to India within six months from the date of export.

 

RBI has been receiving representations from Exporters / Trade bodies to extend the period of realisation of export proceeds in view of the external environment. It has, therefore, been, in consultation with Government of India, announced in the Annual Policy Statement for the Year 2008-09 (para 134) to enhance the present period of realization and repatriation to India of the amount representing the full export value of goods or software exported, from six months to twelve months from the date of export, subject to review after one year.  To give effect above said amendment RBI vides its A. P. (DIR Series) Circular No. 50 dated 3d June 2008 has made necessary changes in the relevant guideline. The provisions in regard to period of realization and repatriation to India of the full export value of goods or software exported by a unit situated in Special Economic Zone (SEZ) as well as exports made to warehouses established outside India with the permission of Reserve Bank remain unchanged.

Thanks & Regards

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Alagar
Investment Banking
Karvy Investor Services Limited
Chennai
Tel: 044-28151034/3445/3658
Moble: 919884731993/ 919790906827
e-mail: alagar.muthu@karvy.com