Master Direction – Export of Goods and Services (Updated as on July 17, 2026)

1. Nine months to repatriate

An exporter must bring the full export value to India within nine months of the date of export.

BankPulse example. Goods leave India on 10 January. The full export value must reach India within nine months of that date. So the money is due by 10 October.

2. Warehouse exports get longer

Goods sent to a warehouse outside India must be paid for within fifteen months of shipment.

3. Free samples have a cap

Free-of-cost promotional exports are capped at 2 per cent of average annual export realisation.

4. A crore for jewellers

The gems and jewellery sectors get an annual free-export cap of one crore rupees or 2 per cent.

5. Advance means a deadline

An exporter who takes advance payment must ship the goods within three years of receiving the money.

6. Interest on advances capped

Interest paid on an export advance may not exceed the reference rate plus 100 basis points.

7. Late refunds need RBI

After three years, refunding an unused advance needs the Reserve Bank's prior approval.

8. Papers within 21 days

Shipping documents arriving after the 21 day deadline may still be handled if the bank accepts the reason.

9. A tenth may wait

Up to 10 per cent of the export value may stay undrawn for weight or quality adjustments.

10. A warehouse abroad has doors

A foreign warehouse is allowed only if overdue exports stay under 5 per cent of last year's exports.

11. Unreported delay goes to RBI

If proceeds stay unrealised and no extension is sought, the bank reports to RBI's regional office.

12. Buyer can change

After default, goods may go to a new buyer without RBI approval if any price cut stays within 25 per cent.

13. Six months at a time

Banks may extend the realisation period themselves, six months at a time, whatever the invoice value.

14. A million dollar door

Extensions beyond one year need total overdue exports within one million United States dollars.

15. Writing off small losses

An ordinary exporter may self write off unrealised bills up to 5 per cent of last year's realised exports.

16. Status holders get double

A status holder exporter may self write off up to 10 per cent; a bank may also write off 10 per cent.

17. One year old first

A bill can be written off only after staying unpaid for more than one year despite best efforts.

18. A six month relationship

The exporter must be the bank's regular customer for at least six months and fully meet KYC rules.

1. Small invoices count too

The bulk statement must list every invoice, including those under 25,000 United States dollars.

2. Third party declared

Export money realised through a third party must be declared on the proper declaration form.

3. Short shipment notice

If part of a declared shipment is short-shipped, the exporter must notify customs in the prescribed form.

4. Overdue bills chased

Banks must watch every bill and take up overdue ones with the exporter promptly.

5. Incentives go back

An exporter writing off a bill must surrender the export incentives received on it.

6. Beyond the exporter's control

The bank must be satisfied the delay was for reasons beyond the exporter's control.

7. Paid as realised

Banks must update the export monitoring system as and when money is actually realised.

8. Commission declared upfront

The commission should be declared on the export declaration form and accepted by customs.

1. Who runs export trade

Export trade is regulated by the Directorate General of Foreign Trade; banks handle the money side under RBI's rules.

2. Banks follow the policy

Authorised dealer banks handle export deals in line with the Foreign Trade Policy and RBI's directions.

3. Same clock for everyone

The same clock covers special economic zones, status holders and export oriented units.

4. Customs certifies the form

At a manual port, customs certifies the declared value and numbers both copies of the export declaration form.

5. Original goes to RBI

Customs keeps the original declaration for the Reserve Bank and returns the duplicate to the exporter.

6. Software in bulk

Software exporters may file single or bulk SOFTEX statements in spreadsheet form for certification.

7. Auditors spot-check

Internal auditors spot check the duplicate forms to confirm any shortfall stayed within the bank's powers.

8. Advances tracked centrally

Banks report every incoming export payment, advances included, into the tracking system.

9. Documents stay with the bank

The bank keeps submitted export papers; they go back only to fix errors and return.

10. Direct dispatch is the exception

Documents may go straight to the buyer only with full advance payment or an irrevocable letter of credit.

11. Consignment needs a trust receipt

Consignment documents are delivered only against an undertaking to pay by a set date.

12. Trust receipt for part bills

The trust receipt routine applies even when a part bill is drawn in advance by trade practice.

13. Expenses off the top

Consignment agents may deduct their normally incurred expenses from the sale proceeds.

14. A turnover threshold

The warehouse applicant needs a minimum export turnover of 100,000 United States dollars in the last financial year.

15. Forms held till paid

The bank keeps the duplicate export forms until the full proceeds are realised.

16. No extension under investigation

No bank extension is allowed while the deal is under investigation by the agencies.

17. A promise to realise

For an extension, the exporter declares the proceeds will be realised during the extended period.

18. Proof of a dead debt

Write-off needs proof, such as the buyer's insolvency and a liquidator's certificate of no recovery.

19. Set-off with the same buyer

Export dues may be set off against import dues to the same overseas buyer or supplier.

20. Group settlement allowed

Set-off can also run with overseas group companies through a centralised settlement arrangement.

21. The caution list

RBI caution-lists an exporter on the bank's recommendation, based on track record and investigations.

22. Grounds for the list

The list is for exporters under agency investigation, those untraceable, or those not truly chasing their dues.

23. Leaving the caution list

The bank also recommends removal from the caution list to RBI's regional office.

24. Digital since 2017

Since 16 October 2017, banks issue these certificates only from the system's own data.

25. Realisation certificates go digital

Banks issue the money-received certificate only from data held in the tracking system.

26. Commission needs a paper trail

Agency commission may be paid by remittance or deduction, on the exporter's application.