FEMA 2026 export-import regulations bring flexible timelines with stronger AD bank scrutiny from October 1

Key facts

• The Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, will be effective from October 1, 2026.
• Goods invoiced or settled in Indian rupees get 12 months for realisation of export proceeds, against the earlier nine-month period, and the Authorised Dealer (AD) bank may extend it.
• If export proceeds remain unrealised for one year after the due or extended date, further exports can be made only against full advance payment or an irrevocable letter of credit (LC).
• For importers, the existing six-month limit for import payments is replaced by the period specified in the contract, and the $200,000 threshold for a standby LC or guarantee on advance remittances is replaced by thresholds fixed under each bank's policy.
• Advance remittance for importing gold and silver is prohibited, while the 90-day credit restriction for gold imports is removed.
• Services other than software become subject to the Export Declaration Form (EDF) for the first time, software exporters will use EDF instead of SOFTEX, and services invoiced or settled in rupees get 12 months for realisation.
• For merchanting trade, the nine-month completion limit is removed, and the gap between outward and inward remittance must not exceed six months, extendable by the AD bank.
• The new framework offers greater commercial flexibility while placing greater responsibility for scrutiny and extensions on AD banks.