The Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 (Second Amendment) Regulations, 2025 (actually notified as the “Amendment Regulations, 2025”) issued by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act, 1999 (“FEMA”).
Background
FEMA was enacted to “facilitate external trade and payments” and to promote the orderly development of the foreign exchange market in India. Under the aegis of FEMA, the RBI issues regulations governing exports, imports, foreign currency accounts, etc. The Export of Goods & Services Regulations, 2015 laid down the rules for how exporters must treat export proceeds, realisation, repatriation, documentation and so on.
What the Amendment Regulations, 2025 do
On 24 June 2025, the RBI notified the Amendment titled “Foreign Exchange Management (Export of Goods & Services) (Amendment) Regulations, 2025” (Notification No. FEMA 23(R)/(6)/2025-RB). The key change introduced by this amendment is as follows:
- In Regulation 4 of the principal regulations (2015), after sub-regulation (c), a new sub-regulation (ca) is inserted.
- The inserted clause reads:
“(ca) Tugs or Tug Boats, Dredgers and Vessels used for providing offshore support services, subject to their re‐import into India.”
- The regulations become effective from the date of their publication in the Official Gazette.
In other words, the scope of “exports of goods and services” under the regulation is broadened to explicitly include certain marine/offshore vessels (tugs, dredgers, support vessels) — provided they are re‐imported into India.
Why this matters
- Clarity and inclusion: By explicitly recognising tugs, tug-boats, dredgers and offshore support vessels in the regulation, the RBI gives clarity to exporters and clarifies that such assets can be treated under the export framework (with the condition of re-import). Previously their status might have been ambiguous.
- Offshore support services/export dynamic: Many Indian entities either charter or export vessels for offshore support services (e.g., in oil & gas, marine construction) and the amendment helps align regulatory treatment with that reality.
- Export-Import linkage: The condition “subject to their re-import into India” underscores that while such vessels may be exported, they are expected to return. This ensures that re-import obligations and the overall external trade compliance regime remain intact.
- Compliance implications: Exporters dealing in these vessels now need to ensure that their transactions are structured in line with this clause — i.e., document the export, arrange for re-import, comply with realisation/repatriation of export proceeds, etc.
Practical takeaways for exporters
- If your business deals with tugs, tug boats, dredgers or offshore support service vessels, you should assess whether the export transaction can fall under this new sub‐regulation (ca) of Regulation 4.
- Ensure you maintain proper documentation for the export and also for the subsequent re‐import into India (to satisfy the “subject to their re‐import” condition).
- Confirm with your Authorised Dealer (AD) bank or export compliance advisor that you meet the other requirements of the principal Regulations (2015) — e.g., realisation of export proceeds, repatriation, routing via AD banks, etc.
- Since the amendment merely inserts the new clause but does not otherwise modify all other obligations (unless separately amended), all earlier compliance obligations (valuation, documentation, shipping bills, repatriation timelines, etc.) continue to apply.
- It may be prudent to monitor whether further amendments or clarifications are issued (for example about permissible jurisdictions, timelines, or specific offshore service sectors) because regulatory frameworks for exports are dynamic.
Concluding thoughts
The Amendment Regulations, 2025 reflect the RBI’s effort to keep the foreign-exchange regulatory framework attuned to evolving trade patterns — in this case, the marine and offshore support industry. By explicitly including certain offshore vessels under the export-regime (with appropriate import linkage), it offers greater clarity to a specialised segment of India’s export economy. Exporters in this domain should take note, review their operational structure, compliance systems and consult with their bankers or lawyers to ensure they optimally exploit this regulatory update while remaining fully compliant.