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FREQUENTLY ASKED QUESTIONS (FAQs)

POLICY ON EXPORT AND IMPORT OF GOODS AND SERVICES (2026-28)

UCO Bank has approved its Policy on Export and Import of Goods and Services on 24.09.2026 in compliance of Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, notified vide FEMA 23(R)/2026-RB dated 13 January 2026 along with subsequent amendments. The Policy is available on Bank’s website.

To facilitate awareness and understanding among customers, the Bank has prepared these Frequently Asked Questions (FAQs) to provide general guidance to exporters, importers and other customers on the key provisions of the Bank’s Policy on Export and Import of Goods and Services. These FAQs are intended to facilitate a better understanding of the applicable regulatory requirements and the procedures to be followed while undertaking export and import transactions.

A. GENERAL

1. What is the applicable regulatory framework for export and import transactions?

Export and import transactions are governed by the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, notified vide FEMA 23(R)/2026-RB dated 13 January 2026, and Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, notified vide FEMA 23(R)/(1)2026-RB dated 22 September 2026 effective from 1 October 2026, along with other applicable regulatory requirements.

2. Which transactions are covered under the policy?

The policy covers export and import of goods and services, software, project exports, advance receipts and payments, third-party transactions, adjustment of export receivables against import payables, reduction and write-off of export proceeds, INR trade settlement and Merchanting Trade Transactions (MTT).

3. Can export contracts and invoices be denominated in Indian Rupees?

Yes. Export contracts and invoices may be denominated in Indian Rupees or freely convertible foreign currency, subject to applicable regulatory requirements and the framework governing international trade settlement in Indian Rupees.

B. EXPORT OF GOODS AND SERVICES

4. What is the time limit for realisation and repatriation of export proceeds?

nine months from the date of shipment in case of goods (other than goods exported to a warehouse outside India) and from the date of invoice in case of services;
nine months from the date of sale of goods from the warehouse in case of goods exported to a warehouse outside India;
as per payment terms of the contracts, in case of project exports:

Provided that where the export of goods and services is invoiced or/and settled in Indian Rupees, the period for realization and repatriation of full export value shall be twelve months, from the date of shipment in case of goods (other than goods exported to a warehouse outside India), from the date of invoice in case of services, and from the date of sale of goods in case of goods exported to a warehouse outside India.

5. Can the time limit for realisation of export proceeds be extended?

Yes. An exporter may request an extension, citing reasons for the delay. The request is subject to the conditions prescribed in the policy.

6. What is an Export Declaration Form (EDF)?

EDF is the declaration relating to the export value of goods or services. For goods exported through an EDI port, the shipping bill is treated as submission of the EDF.

7. Will SOFTEX continue to be used for software exports?

SOFTEX has been abolished. A software exporter may file the EDF with STPI as the specified authority, and STPI, in its capacity as the specified authority, will upload the EDF in EDPMS or may submit to AD Bank.

8. What is the time limit for submission of export documents?

For exports of goods, the EDF/shipping documents, invoice and bill of lading are to be submitted within 30 days from export. For services, the EDF is to be submitted within 30 days from the end of the month in which the invoice is raised, subject to the specific provisions applicable to the transaction.

9. Can one EDF cover services supplied to multiple recipients?

Yes. A single EDF may cover services supplied to multiple recipients during a month, in accordance with the policy.

10. Can export proceeds be received from a third party?

Yes, subject to the prescribed conditions, including documentation supporting the third-party arrangement, disclosure of the relevant details and satisfaction regarding the genuineness of the transaction.

11. Can an exporter receive an advance from an overseas buyer?

Yes. The advance and subsequent export proceeds should be routed through the same Authorised Dealer (AD) bank. A change of AD bank may be made subject to the applicable intimation requirements.

12. What is the time limit for shipment or rendering services against an export advance?

Shipment or rendering of services is to be completed within three years from receipt of the advance, subject to the contractual period. Extension beyond three years may be considered under the policy.

13. Are advances permitted for long-term export contracts?

Yes. Eligible long-term export contracts may qualify for advances for a period of up to ten years, subject to the conditions prescribed in the policy.

14. Can the value of an export invoice be reduced?

Yes. Reduction may be considered subject to the policy. For a shipping bill or service invoice up to ₹10 lakh, the policy provides for consideration on the basis of the exporter’s declaration. For higher amounts, specified grounds and additional conditions apply.

15. Can export proceeds that cannot be recovered be written off?

Yes. Write-off may be considered subject to the applicable conditions. For eligible amounts up to ₹10 lakh per shipping bill or service invoice, the policy permits consideration based on the exporter’s declaration. Higher amounts are subject to additional conditions, including evidence of recovery efforts and other prescribed requirements.

16. Can an undrawn balance remain in an export bill?

Yes. An undrawn balance of up to 10% of the full export value may be permitted where it is normal in the trade, subject to the prescribed undertaking and other conditions.

17. Can export receivables be adjusted against import payables?

Yes. Set-off may be permitted between export receivables and import payables involving the same overseas buyer or supplier, or their overseas group or associated companies, subject to the conditions in the policy. These include genuineness of transactions, outstanding amounts, applicable time limits and prescribed documentary requirements.

18. Are there simplified provisions for small-value export transactions?

Yes. For eligible shipping bills or service invoices up to ₹10 lakh, or the equivalent in foreign currency, EDPMS entries may be closed on the basis of the exporter’s declaration regarding realisation. A quarterly declaration for bulk closure is also provided for under the policy.

C. IMPORT OF GOODS AND SERVICES

19. What is the normal time limit for payment against imports?

The policy generally provides for payment within six months from shipment for goods other than capital goods, and within three years from shipment for capital goods. The applicable period for services depends on the contract and the relevant provisions of the policy.

20. What are the permitted periods for deferred import payments?

Under the policy, deferred payment arrangements or trade credits may be permitted for up to three years for capital goods and up to one year or the operating cycle, whichever is less, for non-capital goods, subject to applicable conditions.

21. Can the time limit for payment of import dues be extended?

Yes. An extension may be considered on a request explaining the reasons for delay, subject to the applicable provisions and conditions of the policy.

22. Can an importer make advance payment to an overseas supplier?

Yes. Advance remittance may be permitted subject to the genuineness of the transaction and the applicable requirements. The advance and subsequent payments should ordinarily be routed through the same AD bank, subject to the policy’s provisions for a change of bank.

23. Is a bank guarantee or standby Letter of Credit required for advance import payments?

For imports of goods, advance remittance exceeding USD 200,000 (or equivalent) is subject to the guarantee/standby Letter of Credit requirements and exceptions specified in clause 3.C.1.1 of the policy. Other conditions may apply according to the transaction.

24. What happens if the import does not take place after an advance payment?

The advance is required to be repatriated if the import does not materialise within the contract period or an applicable extension. Where repatriation is not possible, the relevant import entry may be considered for closure under the conditions prescribed in the policy.

25. Can advance payment be made for import of Gold and Silver?

No, advance payment for import of Gold and Silver is not permitted.

26. Can an import payment be made to a third party?

Yes, subject to the prescribed conditions and supporting documentation establishing the genuineness of the arrangement. The relevant third-party details and payment narration must be reflected in the applicable documents.

27. What is the evidence of import for goods?

The Bill of Entry is the prescribed evidence of import for goods, subject to the applicable provisions of the policy.

28. Are there simplified provisions for small-value import transactions?

Yes. For eligible Bills of Entry or service invoices up to ₹10 lakh, the policy provides for closure of the relevant import entry on the basis of the importer’s declaration, including quarterly declarations for bulk closure where applicable.

D. MERCHANTING TRADE TRANSACTIONS (MTT)

29. What is a Merchanting Trade Transaction?

MTT involves the purchase of goods from one overseas country and their sale to another overseas country, without the goods entering India’s Domestic Tariff Area.

30. What is the time limit for completing an MTT?

The overall MTT must be completed within nine months. The period between outward and inward remittance (or vice versa) must not exceed six months, subject to permitted extension, and foreign-exchange outlay must not exceed six months.

31. Can goods under an MTT enter India’s Domestic Tariff Area?

No. Goods under an MTT must not enter India’s Domestic Tariff Area. Specific processing or value addition may be permitted where the policy allows it and the prescribed documentary requirements are met.

32. What are the principal requirements for an MTT?

The transaction must be genuine and supported by the prescribed documents. The entire MTT is to be routed through the same AD bank, and the applicable requirements relating to remittances, documentation and completion periods must be complied with.

E. CUSTOMER GUIDANCE

33. What should a customer do if an export or import transaction is delayed?

The customer should approach the Bank with the reasons for the delay and relevant supporting documents. Any extension, reduction, write-off, refund or closure is subject to the applicable policy conditions.

34. Where can a customer seek assistance or raise a grievance?

Customers may approach their UCO Bank branch for assistance. Unresolved grievances may be escalated through the Bank’s prescribed grievance-redressal channels available on the UCO Bank website.

F. ADDITIONAL CUSTOMER-FACING PROVISIONS

35. Can an exporter dispatch shipping documents directly to the overseas consignee?

Direct dispatch may be permitted in the circumstances and subject to the conditions prescribed in clause 2.C.3, including arrangements for realisation of export proceeds. Specific provisions also apply to Status Holder Exporters and SEZ units.

36. Can an exporter offer a discount for early payment of a usance bill?

Yes. A cash discount for prepayment of a usance bill may be permitted up to the proportionate interest for the unexpired usance period, calculated as provided in clause 2.C.7.

37. Can an exporter seek a refund of export proceeds already received?

Refund requests are subject to the applicable conditions and documentary requirements under the policy, including satisfaction about the genuineness of the transaction.

38. What is the treatment of goods exported to an overseas warehouse?

Clause 2.A.2 of the supplied policy sets a separate realisation period measured from the date of sale from the overseas warehouse. Goods exported to Bharat Mart have a specific nine-month period from the date of sale. Refer to the final approved policy for the applicable period.

39. How are project exports treated for realisation?

Export proceeds from project exports are to be realised according to the payment terms of the underlying contract, as specified in clause 2.A.2.

40. Can an exporter submit an EDF after the normal submission deadline?

Yes. The exporter may request an extension, citing the reasons for delay, subject to the conditions of clause 2.B.1.

41. What happens if the importer cannot repatriate an import advance after the import fails?

The policy provides for consideration of closure of the relevant IDPMS entry where no import has taken place and repatriation is not possible, subject to satisfaction about the reasons. Clause 3.C.1 also prescribes safeguards for subsequent import advances.

42. Are there limits or safeguards for outstanding merchanting trade transactions?

Yes. Clause 3.C.13 provides that outstanding merchanting trade transactions should not exceed 5% of the merchant trader’s annual export earnings, subject to the policy’s provisions for deviations.

43. Can the proceeds of the export leg of an MTT be received before the import-leg payment?

Yes. The policy provides for such receipts to be kept in an EEFC account or an interest-bearing INR account, earmarked for discharge of the import-leg liability, subject to the prescribed conditions.

44. What is the Bank’s normal processing time after receipt of complete documents?

As provided in section 4.A.1, inward remittances are generally processed the same business day if received during market hours with complete documents, or the next business day if received after market hours. Outward remittances, bill lodgement, export realisation, import payment, import advances and MTT remittance lodgement are listed at two banking days; third-party receipts/payments at three banking days; and set-off at seven banking days. The timelines apply after all documents, queries and regulatory requirements are complete. Documents received after 3:00 p.m. are processed on the next banking day.