What changed
RBI has relaxed FEMA export timelines for goods sold through Bharat Mart warehouses in UAE: repatriation deadline is now nine months from the date of sale, not from shipment. Additionally, AD banks can permit opening or hiring of warehouses and remittances for setup and recurring expenses without prior RBI approval, provided the exporter holds a valid IEC and the bank verifies reasonableness.
What it means for you
Indian exporters get more working capital flexibility since the nine-month clock starts only after sale, not at export. AD banks have greater autonomy to approve warehouse-related forex transactions, reducing compliance burden. This should boost India's trade footprint in the UAE and beyond via Bharat Mart's multimodal logistics network.
What you must do
- Update internal FEMA compliance checklists to reflect the nine-month sale-based repatriation timeline for Bharat Mart exports.
- Train trade finance teams to verify reasonableness of warehouse setup and operational remittances without demanding pre-approval letters.
- Advise exporter clients about the new relaxations and document the exporter's valid Importer Exporter Code before processing requests.
- Monitor sale dates carefully to ensure repatriation deadlines are met; maintain clear audit trails for each transaction.
Who it affects
Authorised Dealer Category-I banks, Indian exporters using Bharat Mart in UAE, Trade finance and forex operations teams at banks, Exporters with warehouses or plans to set up in UAE
What is the new repatriation timeline for exports through Bharat Mart?
Exporters must realise and repatriate the full export value within nine months from the date of sale of the goods from the warehouse, not from the date of shipment.
Do AD banks need RBI approval for warehouse-related remittances under this circular?
No. AD banks can allow opening/hiring of warehouses and remittances for setup and recurring expenses without pre-conditions, after verifying the reasonableness of the amounts and ensuring the exporter has a valid IEC.
Does this circular override other legal or regulatory approvals?
No. The relaxations are under FEMA sections 10(4) and 11(1) and are without prejudice to permissions or approvals required under any other law.