If you are an Exporter, you are required to realize and bring the full value of the export proceeds into India within a specified time frame from the date of export.
This is not only a business requirement to ensure the full and timely realisation of your sale value but also an obligatory requirement under the FEMA regulations.
Time limit for Realization of Export Proceeds
As per RBI regulations, the period of realization and repatriation of export proceeds is nine months from the date of export (date of shipment). The period may be extended by RBI in consultation with the Central Government.
This realization period of nine months applies to all exporters including Units in Special Economic Zones (SEZ), Status Holder Exporters, Export Oriented Units (EOUs), Units in Electronic Hardware Technology Park (EHTPs), Software Technology Parks (STPs) & Bio- Technology Parks (BTPs).
Specific Relaxation provided with regard to Covid-19
In view of Covid-19 pandemic, specific relaxation was provided by RBI with regard to realization and repatriation period.
For exports made up to or on 31-07-2020, the period of realization and repatriation has been extended from nine months to fifteen months from the date of export.
Ensure Compliance to Avoid Penalties
It is crucial for exporters to comply with the realization and repatriation regulations as non- compliance can result in penalties and even restrictions on future exports.
It is also important for exporters to maintain proper records and submit regular reports to the RBI to ensure compliance with the regulations.
In conclusion, we can say that the realization and repatriation of export proceeds, is a critical aspect of international trade and exporters should ensure timely compliance with the regulations to avoid any legal or financial consequences.