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Alerts:

Regulatory Alert: Extension of time limit for export realization

02 April 2020

The Reserve Bank of India (‘RBI’), vide a press release dated 01 April 2020, has announced a relief measure for exporters with a view to deal with the COVID-19 pandemic that is causing hardship to traders.

The summarised version of the RBI press release is as follows:

  • The erstwhile regulations in connection with the Export of Goods and Services provided that the exporter must realise and repatriate the full value of exported goods / software / services to India within a period of nine months from the date of export
  • The said time limit is applicable for all exporters including units in Special Economic Zones (SEZs), Status Holder Exporters (SHEs), Export Oriented Units (EOUs), Units in Electronic Hardware Technology Parks (EHTPs), Software Technology Parks (STPs) & Bio-Technology Parks (BTPs)
  • Now, due to the rising impact of the COVID-19 pandemic, RBI has announced that the time period for realisation and repatriation of proceeds from all exports of goods / software / services, made on or up to 31 July 2020, has been extended to fifteen months from the date of export
  • All the other provisions of Export of Goods and Services shall remain unchanged

BDO comments

This measure will act as a remedy to the exporters for reducing the impact of COVID-19 pandemic, enabling the exporters to realise their export proceeds from the COVID-19 affected countries and also act as an impetus to negotiate future export contracts with overseas clients.