In plain words: exporting goods or services is only half the job under FEMA — you must also bring the money home, on time. Unrealised export proceeds are a classic FEMA problem.
The core obligation
An exporter must realise and repatriate the full value of exported goods or services to India within the prescribed period — generally nine months from the date of export (subject to variations). The money must come through banking channels.
How it is tracked
Exports and their realisation are monitored through the EDPMS (Export Data Processing and Monitoring System). Your AD bank matches shipping documents to inward payments, and outstanding entries flag unrealised proceeds.
If payment is delayed or short
- Seek an extension of time through your AD bank where realisation is genuinely delayed.
- A reduction in value (discount) or a write-off of unrealised amounts is possible within limits, with proper justification.
- Document disputes, insolvency of the buyer, or other genuine reasons.
Advance payments and netting
- Advance payment for exports is allowed, with obligations to ship within time.
- Set-off of export receivables against import payables is possible within the rules.
Staying compliant
- Track each shipment's realisation against the time limit.
- Clear EDPMS outstandings promptly.
- Regularise genuine shortfalls through extension, reduction or write-off — not by ignoring them.
Frequently asked questions
How long do I have to bring export money in? Generally nine months from export, subject to variations.
What if a buyer never pays? Seek extension, and a write-off within limits with documentation.
What is EDPMS? The system that tracks exports and their realisation.
How Vakil Help Desk helps
Vakil Help Desk advises on FEMA compliance, remittances, NRI matters, foreign investment and compounding — and represents clients in ED FEMA proceedings. If you have a cross-border transaction or a FEMA notice, we can help you get it right.
This article is for general legal awareness, not individual legal advice. FEMA rules, limits and forms are revised by the RBI and the Government from time to time, and the right treatment depends on your facts and the current position. Please consult a professional before acting on a cross-border transaction.