Module: General Practice
Q3: With reference to the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025 (notified November 2025), consider the following statements regarding export realization:
The standard period for realization and repatriation of full export value has been extended from 9 months to 15 months.
The timeline for shipment of goods against advance payments received has been increased from 1 year to 3 years.
These relaxations apply only to units in Special Economic Zones (SEZs).
Which of the statements given above is/are correct?
The timeline for shipment of goods against advance payments received has been increased from 1 year to 3 years.
These relaxations apply only to units in Special Economic Zones (SEZs).
Which of the statements given above is/are correct?
✅ Correct Answer: B
Statement 1 is Correct: The RBI amended Regulation 9 to extend the standard period for realization and repatriation of export proceeds from 9 months to 15 months from the date of export.
This was done to provide relief to exporters amidst global supply chain disruptions.
Statement 2 is Correct: The amendment to Regulation 15 extended the time limit for making shipments against advance payments received from overseas buyers from 1 year to 3 years.
Statement 3 is Incorrect: These relaxations are not limited to SEZs.
They apply generally to all exporters (including Status Holders, EOUs, STPs, and DTA units) to ensure uniformity and ease of doing business.
This was done to provide relief to exporters amidst global supply chain disruptions.
Statement 2 is Correct: The amendment to Regulation 15 extended the time limit for making shipments against advance payments received from overseas buyers from 1 year to 3 years.
Statement 3 is Incorrect: These relaxations are not limited to SEZs.
They apply generally to all exporters (including Status Holders, EOUs, STPs, and DTA units) to ensure uniformity and ease of doing business.