FEMA Explained (Part 4): Exports, Imports and NRIs – Realisation Rules and Repatriation
Export realisation in 9 months, EDF for services, import payments, NRE NRO FCNR accounts and NRI repatriation: the FEMA trade and NRI rules after October 2026.
A garment exporter in Hyderabad ships goods in November and the buyer pays “when convenient”. A software company invoices a US client and forgets about it. An NRI sells a flat and asks, “How much can I take abroad?” All three are FEMA questions with clocks attached.
- Part 1: What FEMA is, who it covers, the rule book
- Part 2: Money coming in: FDI, FC-GPR, FC-TRS, FLA
- Part 3: Money going out: LRS, ODI, ECB
- Part 4: Trade and people: exports, imports, NRIs (you are here)
- Part 5: Penalties, compounding, appeals, calendar
1. The new export-import rulebook at a glance
The RBI notified the EXIM Regulations on 13 January 2026 (FEMA 23(R)/2026-RB), supported by Directions issued on 16 January 2026. They bring exports, imports, software, merchanting trade, set-off and third-party settlement into one principle-based framework, replacing the 2015 Export Regulations, two Master Directions and a large body of circulars. Following the amendment of 22 September 2026 (FEMA 23(R)(1)/2026-RB), the framework took effect on 1 October 2026 with shortened realisation periods. Transactions before 1 October 2026 remain under the earlier regime, with a transitional provision allowing AD banks to handle certain matters that earlier needed RBI approval.
| Type of export | Realisation period (as reported) | Clock starts |
|---|---|---|
| Goods and services (general) | 9 months | Date of shipment for goods; date of invoice for services |
| Goods to a warehouse abroad | 9 months | Date of sale from the warehouse |
| Rupee-invoiced or rupee-settled exports | 12 months | As above |
| Project exports | As per contract payment terms | Contract terms |
2. What changed for the exporter
- Services exports now need an Export Declaration Form (EDF), bringing services closer to the monitoring long used for goods.
- Extensions: an AD bank may extend the period if it accepts your reasons for delay.
- Long overdue proceeds: where proceeds remain unrealised more than one year after the due date or approved extension, further exports are allowed only against full advance payment or an irrevocable Letter of Credit.
- RBI Caution List: exporters already on the list on 30 September 2026 continue under existing orders until removed.
- Set-off: set-off of goods receivables against services payables, and the reverse, is permitted under the 2026 framework (as reported).
- Bank discretion: each AD bank must adopt an internal policy and procedure for export, import and merchanting transactions, so documentation requirements can vary by bank.
3. Imports and payments
The same 2026 framework covers import payments. Practical points: pay only through authorised channels, keep invoice, bill of entry or other evidence of import, and track advance payments until the goods or services are received. Interest on export advances or delayed import payments should stay within the trade credit cost ceiling under the Borrowing and Lending Regulations (confirm current ceiling). Because bank-level policies now play a larger role, ask your AD bank for its written import and merchanting policy before the first transaction.
| Mistake | Why it matters |
|---|---|
| Letting invoices age without tracking the realisation date | Proceeds unrealised after the deadline need AD bank extension and may restrict future exports |
| Netting export and import dues without checking permission | Set-off is allowed only in the manner permitted |
| Paying an import advance without tracking receipt of goods | Evidence of import is a standard audit query |
| Receiving export money from an unrelated third party without documentation | Third-party settlement has conditions |
| Using 2015-era procedure for post-October 2026 transactions | The framework changed; documentation and timelines differ |
4. NRIs: accounts, property and repatriation
| Account | What it is | Repatriation |
|---|---|---|
| NRE | Rupee account funded from foreign earnings | Freely repatriable (principal and interest) |
| NRO | Rupee account for income earned in India such as rent, dividends, sale proceeds | Not freely repatriable; up to USD 1 million per financial year after tax, with Form 15CA/15CB and declarations |
| FCNR(B) | Term deposit in foreign currency | Repatriable |
- Property: NRIs and OCIs can purchase residential and commercial property in India, but not agricultural land, plantation property or a farm house. Sale proceeds are credited to the NRO account and repatriation follows the cap and tax documentation above. See our NRI property sale guide.
- Investments in India: repatriation basis versus non-repatriation basis changes how funds can later leave India. The June 2026 amendments widened portfolio investment routes for overseas individuals (see Part 2).
- Change of residential status: when a resident becomes non-resident (or the reverse), accounts and investments must be re-designated and the bank informed.
5. Timeline snapshot
Why work with ComplianceKart
ComplianceKart is a boutique practice bringing Chartered Accountants, Company Secretaries and advocates under one roof. Think of a multi-speciality hospital: the physician, the radiologist and the pharmacist read from one patient file, so you never carry reports between buildings. Export realisation, bank documentation, GST export treatment and income tax on foreign income all point to the same invoices. One team reading the same record avoids contradictory filings.
Frequently Asked Questions
What is the export realisation period now?
Under the EXIM Regulations, 2026 as amended in September 2026, the general period is 9 months from shipment for goods and from the invoice date for services, and 12 months for rupee-invoiced exports (as reported).
Do service exporters need an EDF?
Yes, the 2026 framework introduces a mandatory Export Declaration Form for services exports (confirm thresholds and exceptions in the Directions).
What if export proceeds are delayed?
Apply to your AD bank for an extension with reasons before the period ends. Long unrealised amounts restrict future exports to advance payment or an irrevocable Letter of Credit.
How much can an NRI repatriate from an NRO account?
Up to USD 1 million per financial year after taxes, with the required declarations and Form 15CA/15CB.
Can an NRI buy agricultural land in India?
No. NRIs and OCIs cannot purchase agricultural land, plantation property or a farm house, though they can inherit them.
Sources
- FEM (Export and Import of Goods and Services) Regulations, 2026 (FEMA 23(R)/2026-RB, 13 January 2026) and Amendment Regulations (FEMA 23(R)(1)/2026-RB, 22 September 2026)
- RBI Directions on Export and Import of Goods and Services (16 January 2026)
- FEM (Non-debt Instruments) Rules, 2019 and RBI Master Directions on deposits and remittance facilities
Website: FEMA and NRI compliance services
Email: team@compliancekart.com
Phone: 9959536391
Educational article, last updated 11 November 2026. It is general information, not advice on a specific transaction. FEMA directions change often; confirm the position on the date you act. Items marked (confirm) were reported by secondary sources and should be checked against the RBI or Gazette text.
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