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FEMA Guidelines for Export of Goods and Services (Amendment) Regulations, 2021

FEMA Guidelines for Export of Goods and Services Regulations, 2021

This article speaks about the notification released by the Reserve Bank of India, about the FEMA Guidelines for Export of Goods and Services through amendment regulations of 2021. RBI releases the notification concerning amending FEMA (Export of Goods & Services) Regulations 2015 under the FEMA Notification No. FEMA 23(R)/2015-RBI dated January 12, 2016, referred to as the Principal Regulation. The notification came into effect from January 8, 2021. The notification is the positive change for the registered users of Foreign exchange Regulations.

Notification No- FEMA23(R)/ (4)/2021-RB- FEMA guidelines for Export

The notification says that, in the exercise of the powers conferred by Clause (a) of Sub-Section (1), sub-section (3) of section 7 and Clause (b) of subsection (2) of section 47of the Foreign Exchange Management Act, 1999[1], the Reserve Bank of India, makes the following amendments, in the FEMA-Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, which is referred to as Principal regulations.

As given in the Principal Regulation that is Regulation Number 4 of sub-regulation (ea), the following words which have been substituted as follows-

That re-export of Goods of leased aircraft/helicopter/and/or engines/auxiliary power units APUs, either entirely, or in partially knocked down conditions, repossessed by the overseas lessor, and duly de-registered by the Directorate General of Civil Aviation –DGCA on the request of the Irrevocable Deregistration and Export Request Authorisation-IRDEA holder under Cape Town Convention or any other termination or cancellation of the lease agreement between the lessor and lessee subject to permission by DGCA/Ministry of Civil Aviation for such exports.

What is the Notification of FEMA guidelines for Export in 2021?

What is the Notification of FEMA guidelines for Export in 2021?
  1. Difference between regulation 3 and 4

As understanding the nature of the notification, it can be interpreted that, Regulation 4 of the Foreign Exchange Management (Export of Goods &Services), 2015, relates to the Exemption to the principle rule of Regulation 3- which speaks about how exports are declared. This Regulation is an exemption clause. It talks about the Exemption where declaration of exports of goods or software may be made without furnishing the declaration in the following cases. Those cases are elaborated under the Regulation 4.

  1. Change in the Notification of 2021 -FEMA guidelines for Export of Goods & Service

The notification of 2021-FEMA guidelines for Export changed the Regulation 4 (e) clause. Clause (ea) has been added by the amendment of 2021. This Clause (e) of the 2015 Export of goods and service regulation was all about-

“it can be said that Aircraft or aircraft engines and spare parts for overhauling and or repairs abroad subject to the re-import in India after overhauling/repairs, within a period of 9 months from the date of the export”.

  1. The difference between 2021 and 2015 Regulation 3

The notification of 2021 is different from the 2015 regulation. Clause e of regulation 4 of the guidelines, gave the Exemption for Export of goods or services for not furnishing any document while exporting. But Clause (ea)-added that while re-exporting an aircraft/helicopter/APU, mandatory permission of the lessor-lessee shall be subject to authorisation by DGCA/Ministry of Civil Aviation of Exports.

This requirement was not in the regulation of 2015, 2016 and 2020, but it has been added through the 2021 amendment.

What is regulation 3 of FEMA (Export of Goods or Services) Regulation, 2015?

Regulation 3 of FEMA guidelines for exports is about, the declaration of exports. This means what medium or items to be declared as exports.

  1. Export through Customs manual ports- where the exporters of goods or software in physical form, to any place outside India, shall have to give the declaration in the Form specified by the schedules’ authority.
  2. Where there are exports of services, to which none of the forms specified in the regulations apply, the exporter will not have to furnish any document. But the exporter is liable to accrue the amount due of foreign exchange on his account.
  3. The Export of goods or services from the 3rd party shall be duly declared by the exporter in the appropriate declaration form.

What is included in the regulation 4 of FEMA guidelines of export of goods or services 2015?

The exemptions which are included in regulation 4, where no documents are to be furnished while exporting of goods or services:

  1. Trade samples supplied free of payment
  2. Personal effect of travelers
  3. Trans-shipment cargo
  4. By way of gifts
  5. Aircraft or engines and spare parts for repair when re-imported to India
  6. The Goods imported free of cost on re-export basis
  7. The goods allowed by technology commissioner under SEZ
  8. Replacement goods ordered free of cost
  9. Exports permitted by RBI.


It can be concluded that the notification speaks about aircraft/aircraft engines for overhauling and/or repairs abroad subject to their re-import into India after overhauling /repairs, within six months from the date of their Export. Such permission is reserved for the lessor & lessee in the contract to the DGCA. The notification is good news for aviation industry.

Read our article:FEMA Compliance on Export of Goods and Services


Sonal Pruthi

She is B.Com (H), LL.B LLM, Cs (Module 2) And Certification In Cyber Law From ILI Qualified. She has Been A Legal Teacher In The Previous Organization. My Strength Is My Expertise Knowledge In Civil Laws, Corporate Law And Tax Laws. I Have Been Legal Teacher And Legal Trainer In The Past Organization. Her Knowledge About The Subjects Have Expanded Due To Teaching Number Students From Various Universities All Over India.

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