Decoding DGFT's INR settlement rules and Customs re-export deadlines

DGFT's latest notification aligns INR export proceeds with foreign-currency realisation, while Customs clarifies when the six-month re-export clock begins

We want to know how the DGFT ( Directorate General of Foreign Trade) notification no. 30/2026-27 dated 20 August 2026 affects the position that existed before the notification was issued? 

DGFT Notification No. 30/2026-27 essentially aligns the Foreign Trade Policy with the wider INR settlement framework already permitted under FEMA/RBI regulations. Prior to the notification, Para 2.52 of FTP 2023 permitted export contracts and invoices to be denominated in INR but generally required export proceeds to be realised in freely convertible currency, subject to specified exceptions. Thus, the FEMA/RBI framework permitted certain INR settlement arrangements which did not necessarily receive equivalent recognition under the FTP. The FEMA (Manner of Receipt and Payment) Regulations, 2023 permit trade transactions with countries other than ACU member countries to be settled in INR or foreign currency, subject to the applicable FEMA/RBI disciplines. RBI has also provided specific mechanisms for INR settlement, including Vostro and Special Rupee Vostro arrangements and permitted transactions through accounts maintained by non-residents. 

Notification No. 30 now changes the FTP consequences of such transactions. Qualifying export proceeds realised in INR through the prescribed banking channels are to be treated at par with export proceeds realised in foreign currency for export benefits, incentives and fulfilment of export obligations. Therefore, the notification does not materially expand the underlying FEMA permission to receive INR. Its substantive change is that FEMA-compliant INR realisation, which was previously subject to restrictions or exceptions under FTP, is now accorded parity with foreign-currency realisation for FTP purposes. It is consequently more appropriate to describe the notification as an alignment of FTP with the existing FEMA/RBI framework, rather than as a new liberalisation of INR settlement itself. I suggest you go through the text of RBI Master Directions on 

‘Export of Goods and Services’ (Para A1) and on ‘Deposits and Accounts’ (Part-II) and Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2023. 

We refer to the exemption notification 158/95-Cus dated 14th November 1995, which allows six months period and six more months extension granted by the Customs, from the date of importation within which the imported goods must be re-exported after due repairs or reconditioning. What is meant by ‘date of importation’? Is it when the goods came into Indian territorial waters? Or is it the date of filing the bill of entry. 

For the purposes of this notification, the date of importation is the date of actual Customs clearance of the imported goods. The CBEC circular no.14/97-Cus dated 3rd June 1997 says: ‘It is seen that sometimes the process of establishing the identity of goods takes some time and if it is delayed considerably reckoning 6 months from the date of filing the Bill of Entry would defeat the purpose of this beneficial notification. Board is of the opinion that the time period of six months, as stipulated in 

the said notification, for the purpose of re-export, is to be calculated from the date of actual clearance of the goods and not from the date of filing of Bill of Entry.’

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