New FEMA Export and Import Regulations to Take Effect from October 1

The Reserve Bank of India has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. The regulations, issued along with detailed directions, will come into force from October 1, 2026.  

They will govern foreign exchange transactions linked to exports and imports of goods and services. The framework replaces existing provisions under FEMA. 

Scope of the New Framework 

The regulations apply to exports, imports and merchanting trade transactions. They cover both goods and services, including software exports and service imports.  

The rules lay down reporting, monitoring and closure requirements for authorised dealer (AD) banks. The intent is to bring uniformity in data reporting across trade transactions. 

Export Reporting Requirements 

For goods exported through non-Electronic Data Interchange (non-EDI) ports, AD banks must enter Export Declaration Form (EDF) details into the Export Data Processing and Monitoring System (EDPMS).  

This must be completed within five working days of receiving the EDF. The timeline applies regardless of the value of the shipment. 

Rules for Service Exports 

In the case of service exports, including software, banks are required to upload exporter-submitted EDF details into EDPMS.  

The data must be entered within five working days of receipt from the exporter. This brings service exports under the same reporting timeline as goods exports. Banks are responsible for ensuring timely data entry. 

Import Documentation Norms 

For imports routed through non-EDI ports, AD banks must record import document details in the Import Data Processing and Monitoring System (IDPMS).  

The entry must be made within five working days of receipt of the documents. Details of service imports, as declared by importers, are also required to be uploaded within the same timeframe. 

Reporting of Remittances 

The regulations require all inward and outward remittances linked to exports, imports and merchanting trade to be reported in EDPMS and/or IDPMS. This applies to both goods and services transactions. Banks must track remittances against declared trade data. 

Monitoring and Closure of Transactions 

AD banks are required to continuously monitor EDPMS and IDPMS for outstanding entries. They must follow up with exporters, importers and merchanting trade participants for submission of pending documents. The objective is timely closure or mark-off of open transactions. 

Read More:  RBI Notifies Foreign Exchange Management (Guarantees) Regulations, 2026! 

Conclusion 

The revised FEMA regulations introduce uniform timelines and monitoring requirements for trade-related foreign exchange transactions. The rules will be effective from October 1, 2026. 

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