New Regulations under FEMA for Export and Import

The Reserve Bank of India has released the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. These regulations will come into force on 01^st October, 2026.  While these regulations cover export and import both of goods and services, the exporters and importers of services should note the following:

1. Export Declaration Form (EDF) will have to be filed by service exporters, too.

   
   

2. For services other than software, the EDF shall be submitted to the Authorised Dealer (AD) in domestic tariff area (DTA) and, in the case of SEZ, also to the Development Commissioner of Special Economic Zone.

   
   

3. For software export services, EDF shall be submitted to the AD or Software Technology Park of India (STPI) in DTA and to the Development Commissioner of Special Economic Zone in SEZ.

   
   

4. As a general requirement, EDF is to be submitted within 30 days from the end of the month in which the invoices for export of services are raised. If services have been exported to more than one recipient, a single EDF may be submitted for all such exports. EDF for service exporters, other than for software, may also be submitted on or before the date of receipt of payment.

   
   

5. Export proceeds that are settled in foreign currency must be realised within 15 months from the date of invoice. This period will be 18 months where the invoice is settled in Indian Rupees.

   
   

6. Payments for imports may be made within the timelines stipulated in the underlying contract. The 6 month stipulation will no longer apply.

   
   

7. Export receivables may be set-off against import payables from/to the same overseas buyer/group/associate companies. The earlier requirement of setting off receivables for services only against payables for services and receivables for goods only against payables for goods will not apply.

Service exporters should contact their AD Banks for specific SOP’s/guidelines in this matter.