Section 7 FEMA Act 1999 - Export of Goods and Services
Section 7 of the Foreign Exchange Management Act, 1999 deals with declarations and information connected with exports of goods and services from India. It empowers the Reserve Bank of India to prescribe the manner in which export particulars are reported and to require steps that help ensure receipt of export proceeds.
Law position reviewed: 27 September 2026.
Meaning of export under FEMA
Section 2(l) of FEMA defines export to include taking goods out of India to a place outside India and providing services from India to a person outside India. Section 7 then imposes the reporting and declaration framework for such exports.
Text and meaning of Section 7
Section 7(1) - Export of goods
Every exporter of goods must furnish to the Reserve Bank, or to another authority specified for the purpose, a declaration in the prescribed manner containing true and correct material particulars. The declaration includes the full export value or, where that value cannot be determined at the time of export, the value that the exporter reasonably expects to receive having regard to prevailing market conditions.
The exporter must also furnish such further information as the Reserve Bank may require for ensuring realisation of the export proceeds.
Section 7(2) - RBI directions to secure export value
For ensuring receipt of the full export value, or a reduced value determined by the Reserve Bank having regard to prevailing market conditions, the Reserve Bank may direct an exporter to comply with requirements considered necessary for receipt of that value without delay.
Section 7(3) - Export of services
Every exporter of services must furnish to the Reserve Bank, or to another specified authority, a declaration in the specified form and manner containing true and correct material particulars relating to payment for the exported services.
How Section 7 works in practice
Section 7 is the enabling provision. The operational requirements are supplied by RBI regulations and directions. Exporters therefore need to read the section together with the regulations in force on the relevant date, the applicable RBI directions, the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023, and the Foreign Trade Policy where relevant.
- Declaration: Exporters must provide accurate export particulars in the applicable export declaration and reporting system.
- Full export value: The regulatory framework is designed to ensure that the value due from exports is realised and repatriated in accordance with FEMA.
- Authorised Dealer bank: Export receipts and related compliance are ordinarily handled through an authorised dealer bank, subject to RBI rules and directions.
- Monitoring: Export entries and receipts are monitored through RBI-prescribed reporting systems, including EDPMS where applicable.
- Related provisions: Section 8 deals with realisation and repatriation of foreign exchange, while Section 9 specifies exemptions in certain cases.
Realisation and repatriation period
| Period | Applicable framework | General position |
|---|---|---|
| Up to 30 September 2026 | 2015 Export Regulations and RBI Master Direction | RBI's Master Direction states a general period of nine months from the date of export for realisation and repatriation for exporters, subject to specific rules, permitted extensions and special cases. Goods exported to a warehouse outside India have separate treatment. |
| From 1 October 2026 | 2026 Export and Import Regulations | Regulation 5 generally provides nine months from shipment for goods and from invoice for services; goods exported to a warehouse outside India generally have nine months from sale. Where export is invoiced or settled in INR, the specified period is generally twelve months. An Authorised Dealer may permit an extension on a reasoned request where satisfied with the reasons. |
These time limits should not be read in isolation. Special transaction types, contractual arrangements, extensions, project exports and other RBI directions may affect the applicable compliance requirement.
New RBI framework from 1 October 2026
The 2026 Regulations consolidate export and import regulation into one framework. Among other matters, they provide for export declarations, receipt and payment, realisation periods, reduction in export realisation, set-off, third-party receipts and payments, project exports, merchanting trade, reporting through EDPMS and IDPMS, and internal policies of Authorised Dealers.
For services, the 2026 framework provides for an Export Declaration Form specifying the full export value, generally within 30 days from the end of the month in which the service invoice is raised, subject to the alternatives and extensions stated in the Regulations. For goods exported through an EDI port, the EDF is deemed to be submitted as part of the shipping bill.
Relationship with Sections 8 and 9 of FEMA
Section 8 requires a person resident in India to take reasonable steps to realise and repatriate foreign exchange due or accrued to that person, subject to FEMA. Section 9 provides statutory exemptions for specified categories. Together, Sections 7 to 9 form an important part of FEMA's framework for export earnings.
Compliance takeaway for exporters
An exporter should ensure that export declarations are complete and accurate, export proceeds are routed and reported through the permitted banking mechanism, proceeds are realised within the applicable period, and any delay, short realisation, write-off, set-off or other adjustment is handled through the Authorised Dealer in accordance with the regulations and RBI directions in force on the relevant date.
Official legal resources
For the controlling text and current regulatory position, refer to the official India Code text of the Foreign Exchange Management Act, 1999 and the Reserve Bank of India FEMA notifications and Master Directions. The RBI's consolidated 2026 Regulations should be used for transactions governed by the framework commencing on 1 October 2026.