How Do You Close Outstanding Shipping Bills and Invoices in EDPMS?
- Author:
- Manoj Sharma
- Verified by:
- Editorial team
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Short answer
EDPMS closure is the AD bank marking off an export entry once the export value is realised. Your AD bank closes the shipping bill or invoice when it credits the matching payment. Entries up to ₹10 lakh can be closed on your declaration. Larger unpaid entries need an extension or a reduction approved by the bank.
| Applies to | Governed by | Deadline | Penalty | Last verified |
|---|---|---|---|---|
| Every exporter whose shipping bills (goods) or EDF declarations (services and software) are recorded in EDPMS by an AD bank | Regulations 4(2), 5, 6 and 18(1) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 | Entry should close within the realisation period: 9 months from shipment or invoice, 12 months if invoiced or settled in rupees, or any AD bank extension | Open entries more than one year past the due or extended date mean further exports only against full advance or an irrevocable LC; FEMA section 13 penalties may also apply | 8 Oct 2026 |
What is EDPMS closure for exporters?
EDPMS closure is the step where your AD bank marks an export entry as settled in RBI's Export Data Processing and Monitoring System. Each shipping bill or service EDF stays open until the bank confirms the export value has been realised, reduced, set off or otherwise settled.
- System: EDPMS is RBI's database that links export declarations with the money received for them. RBI introduced it through A.P. (DIR Series) Circular No. 101 of 4 February 2014 (listed as item 72 in Annex A of Circular No. 20), and it became operational on 1 March 2014 (old Master Direction, para C.15(iv)).
- Goods entries: For goods shipped through an EDI port, the shipping bill is treated as the EDF (Regulation 3(1)). For non-EDI ports, the AD bank enters the EDF in EDPMS within five working days of receiving it (Regulation 18(1)(a)).
- Service entries: Service and software exporters file an EDF within 30 days from the end of the invoice month, and the AD bank enters it in EDPMS within five working days (Regulations 3(2) and 18(1)(b)).
- Remittances: The AD bank also records every inward remittance for exports, including advances, in EDPMS (Regulation 18(1)(e)).
- Mark-off: The AD bank marks off the entry after ensuring the export value has been realised (Regulation 18(1)(g)), and closes or updates it at the same time it credits your account (Regulation 4(2)).
An open entry is a record that money is still owed to India. Closing it on time keeps your export record clean with your AD bank.
Who needs to close entries in EDPMS?
Any exporter with an open shipping bill, EDF or advance entry in EDPMS needs that entry closed. The AD bank performs the closure, but the exporter must supply the payment details, declaration or request that lets the bank close it.
| Entity type | Applicable | Why | Best for |
|---|---|---|---|
| Goods exporter (EDI port) | Yes | Shipping bill data reaches EDPMS and stays open until realisation (Regulations 3(1) and 18(1)(g)) | Manufacturers and merchant exporters |
| Goods exporter (non-EDI port) | Yes | AD bank enters the EDF manually within five working days (Regulation 18(1)(a)) | Exporters using smaller ports or post |
| Software or IT services firm | Yes | Software counts as services and is declared on an EDF from 1 October 2026 (Regulations 2(1) and 3(2)) | Firms that earlier filed SOFTEX; see SOFTEX form filing |
| Freelancer or consultant exporting services | Yes, once an EDF is filed | Service EDFs are entered in EDPMS by the AD bank (Regulation 18(1)(b)) | Individuals billing foreign clients; see EDPMS for service exporters |
| Exporter holding an advance with no shipment | Yes | Advance remittances sit in EDPMS until utilised or closed (Regulation 18(1)(e) and (i)) | Exporters whose order was cancelled |
| Merchanting trade intermediary | Yes | Both legs must be closed or updated in EDPMS and IDPMS (Regulation 18(1)(l)) | Traders buying and selling goods abroad |
How do you close an outstanding shipping bill or invoice in EDPMS?
You close an outstanding EDPMS entry by getting the export value into India through the AD bank that holds the entry and linking the payment to it. Where full payment will not come, you ask the bank to extend, reduce, set off or close the entry on your request.
- Check which entries are open. Ask your AD bank for your EDPMS outstanding list, or for goods check that the shipping bill reached EDPMS through the 'Status of SB in RBI – EDPMS' enquiry on ICEGATE. See how to check EDPMS outstanding.
- Match each payment to its shipping bill or invoice. Give the bank the invoice number, shipping bill or EDF number and remittance reference so it can close the entry as it credits your account (Regulation 4(2)).
- For an entry of ₹10 lakh or less, submit a declaration that the payment has been realised in full or otherwise. You can also send one quarterly declaration covering several entries for bulk closure (first proviso to Regulation 4(2)).
- If the buyer paid less, or will not pay, ask the bank to allow a reduction in export value with reasons. Up to ₹10 lakh per shipping bill or invoice, your declaration is enough (Regulation 6).
- If payment is late but still expected, ask the bank to extend the realisation period, citing reasons for the delay (second proviso to Regulation 5(1)). See extension of export realisation period.
- If you owe the same buyer for imports, ask the bank to allow set-off of the receivable against the payable within the realisation period (Regulation 7). See set-off of export receivables.
- Confirm closure. Ask the bank to confirm in writing that the entry is marked off, and keep it with your export file.
How does the ₹10 lakh declaration route close EDPMS entries?
For a shipping bill or invoice of up to ₹10 lakh or its foreign currency equivalent, the AD bank may close the EDPMS entry based on your declaration that payment has been realised in full or otherwise (Regulation 4(2)). RBI first allowed this through A.P. (DIR Series) Circular No. 12 of 1 October 2025, which also applied it to old outstanding entries.
- The limit is per shipping bill or invoice, not per exporter or per year.
- The declaration may be given entry by entry or quarterly in bulk.
- A reduction in value up to the same limit is also accepted on your declaration (Regulation 6).
- The format of the declaration is set by each AD bank. Ask your bank for its template.
How is an EDPMS advance entry closed when no export happens?
If you received an advance but no export was made and the advance cannot be refunded, the AD bank may close the advance entry on your request with reasons, once satisfied they are genuine (Regulation 18(1)(i)). If a refund is possible, the usual path is to refund the buyer. See refund of advance export payment.
What role does the AD bank play in EDPMS closure?
The AD bank owns the EDPMS entry. It enters the data, links remittances, follows up on open items and decides on closure, extension and reduction requests (Regulations 5(2) and 18(1)(f)).
- Each AD bank must have a documented internal policy and SOP covering documents, timelines, charges, extensions and adjustments of export proceeds (Regulation 19(1)).
- The SOP must include an escalation process and an appeal handled at a higher internal level (Regulation 19(2)).
- Charges must be reasonable, and the bank may not levy charges or penalties on you for regulatory delays (Regulation 19(3)).
- The bank must publish the policy and main SOP features on its website (Regulation 19(4)).
- Decisions that earlier needed RBI approval for exports made before 1 October 2026 are now handled by AD banks (Regulation 20). See how AD banks monitor exports.
What documents and deadlines apply to each type of EDPMS closure?
The documents depend on why the entry is being closed. The table lists each closure route under the 2026 regulations, what the AD bank usually needs, and the time limit that applies. Exact document lists vary by bank, so check your bank's published SOP.
| Closure route | Typical documents | Time limit | Rule | Best for |
|---|---|---|---|---|
| Full realisation | Remittance details linked to the shipping bill, EDF or invoice | Within 9 months (12 for rupee invoicing) or extended date | Regulations 4(2), 5 and 18(1)(g) | Buyers who paid in full |
| Declaration up to ₹10 lakh | Exporter declaration of realisation, single or quarterly bulk | No separate deadline stated; due within realisation period | First proviso to Regulation 4(2) | Small exporters and freelancers |
| Reduction in value | Request with reasons; declaration if up to ₹10 lakh per bill or invoice | No time limit stated in Regulation 6; check your bank's SOP | Regulation 6 | Discounts, quality claims, short payments |
| Extension | Request citing reasons for delay | No time limit stated in Regulation 5; check your bank's SOP | Second proviso to Regulation 5(1) | Buyers who are late but still paying |
| Set-off | Request with details of the matching import payable | Within realisation period or extended period | Regulation 7 | Exporters who also import from the same party or group |
| Advance with no export | Request with reasons why refund is not possible | Not specified | Regulation 18(1)(i) | Cancelled orders where advance cannot be returned |
What happens if an EDPMS entry stays open past the realisation period?
An entry that stays open past the realisation period shows the export as unrealised. Unless the AD bank extends the time or reduces the value, the exporter is in breach of the realisation rule and the bank must follow up.
- Advance only: If proceeds stay unrealised for more than one year beyond the due or extended date, further exports are allowed only against full advance or an irrevocable letter of credit (Regulation 13).
- Caution list: Exporters on RBI's caution list on 30 September 2026 remain under that order until removed (proviso to Regulation 13). See RBI exporter caution list.
- FEMA penalty: A contravention of FEMA rules can attract a penalty of up to three times the sum involved, or up to ₹2 lakh where not quantifiable, plus up to ₹5,000 a day if continuing (FEMA section 13(1), as restated in RBI's Master Direction on compounding, para 1.1). See FEMA penalties and compounding.
- GST on services: Under an LUT, you undertake to pay tax with interest if payment for exported services is not received within one year from the invoice date, or the FEMA period including any extension if later. The tax is due 15 days after that period ends (CGST Rule 96A(1)(b)).
- Bank follow-up: The AD bank must monitor open entries and follow up with you for documents (Regulation 18(1)(f)).
Contact your AD bank as soon as you see an open entry. Send payment references for receipts that were not linked, a ₹10 lakh declaration where it applies, or a request for extension or reduction with buyer correspondence. If the bank refuses, use the appeal route in its SOP under Regulation 19(2). See export proceeds not realised.
Which RBI rule governs EDPMS closure?
From 1 October 2026, EDPMS closure is governed by Regulations 4(2), 6 and 18(1) of the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. A.P. (DIR Series) Circular No. 20 superseded the old Master Direction and the earlier EDPMS circulars on that date.
| Circular or regulation | Clause | Date | Plain meaning | Best for |
|---|---|---|---|---|
| FEMA (Export and Import of Goods and Services) Regulations, 2026, FEMA 23(R)/2026-RB | Regulations 4(2), 6, 18(1) and 19 | 13 January 2026; amended 22 September 2026; in force 1 October 2026 | Bank closes entries on credit, ₹10 lakh declaration route, mark-off duties and bank SOP | Every exporter from 1 October 2026 |
| A.P. (DIR Series) Circular No. 20, RBI/2025-26/194 | Paras 4 and 7; Annex A | 16 January 2026; effective 1 October 2026 | Supersedes the Master Direction on exports and EDPMS circulars, including Circulars 101 (2014), 74 (2016) and 12 (2025) | Readers checking which rules still apply |
| A.P. (DIR Series) Circular No. 12, RBI/2025-26/89 | Paras 3 and 4 | 1 October 2025; superseded 1 October 2026 | First allowed closure of entries up to ₹10 lakh on exporter declaration, including old outstanding entries; no penal charges by banks | Exporters closing old small-value entries |
| Master Direction: Export of Goods and Services | Paras C.14, C.15, C.23 and C.31 | 1 January 2016; superseded 1 October 2026 | Old rules on export bill registers, follow-up of overdue bills, write-off limits and the ₹10 lakh special procedure | Understanding past practice; see RBI Master Direction on exports |
What are the common mistakes that keep EDPMS entries open?
- Unlinked receipts: Receiving payment without quoting the invoice or shipping bill, so the bank cannot match it to the open entry.
- Split banks: Taking an advance through one AD bank and the balance through another without telling both, which Regulation 10(1) requires.
- Short payment: Leaving an entry open after the buyer deducted bank charges or a discount, instead of asking for a reduction under Regulation 6.
- Late extension: Letting an entry go past its due date without asking the AD bank for an extension under Regulation 5(1).
- Missed declaration: Not using the declaration route for entries of ₹10 lakh or less, which can be closed singly or in a quarterly bulk declaration.
- Old rules: Following write-off limits or SOFTEX steps from the superseded Master Direction instead of the 2026 regulations.
How did we verify this?
Every rule, deadline and form on this page is linked to its official source, checked on the dates below.
- Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB dated 13 January 2026, amended up to 22 September 2026, Regulations 2(1), 3, 4(2), 5, 6, 7, 10(1), 13, 18(1), 19, 20 (checked 8 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194: Export and Import of Goods and Services, 16 January 2026, Paras 4 and 7; Annex A items 72, 73, 88, 90, 93 and 96 (EDPMS circulars superseded, including Circular No. 101 of 4 February 2014) (checked 8 Oct 2026)
- RBI A.P. (DIR Series) Circular No. 12, RBI/2025-26/89: EDPMS and IDPMS, reconciliation of export/import entries, review of guidelines, 1 October 2025, Paras 3 and 4 (checked 8 Oct 2026)
- RBI Master Direction: Export of Goods and Services (FED Master Direction No. 16/2015-16), superseded from 1 October 2026, Paras C.14, C.15 (including C.15(iv): EDPMS operational from 1 March 2014), C.23, C.30 and C.31 (checked 8 Oct 2026)
- RBI Master Direction: Compounding of Contraventions under FEMA, 1999 (updated 24 May 2022; superseded by Directions of 1 October 2024), Para 1.1 restating FEMA section 13(1) (checked 8 Oct 2026)
- ICEGATE FAQs (Indian Customs EDI Gateway), FAQ on checking 'Status of SB in RBI – EDPMS' under Public Enquiries (checked 8 Oct 2026)
- Central Goods and Services Tax Rules, 2017: Rule 96A, Rule 96A(1)(b) (checked 8 Oct 2026)
Frequently asked questions
How long does EDPMS closure take after the export payment arrives?
Regulation 4(2) requires the AD bank to close or update the EDPMS entry at the same time it credits the export payment to your account. In practice, delays happen when the payment cannot be matched to an entry. Quote the invoice or shipping bill number with every remittance to avoid this.
Can a freelancer close EDPMS entries with a self-declaration?
Yes, if each invoice is ₹10 lakh or less or its foreign currency equivalent. Regulation 4(2) lets the AD bank close such EDPMS entries on the exporter's declaration that payment was realised in full or otherwise. The declaration can be given invoice by invoice or quarterly in bulk.
Do bank charges deducted abroad leave an EDPMS entry open?
They can, because the amount credited is less than the declared export value. Ask your AD bank to record the shortfall as a reduction in export value under Regulation 6. For entries up to ₹10 lakh per shipping bill or invoice, your declaration is enough for the bank to accept it.
What happened to the write-off of unrealised export bills in EDPMS?
The old Master Direction allowed write-off within set limits under para C.23. That direction was superseded on 1 October 2026. Under Regulation 6 of the 2026 regulations, the AD bank may allow a reduction in export value, including non-realisation, if satisfied with your reasons. See write-off of export bills.
Can an AD bank charge a penalty for late EDPMS closure?
No. Regulation 19(3) of the 2026 regulations says an AD bank shall not levy any charges or penalty on an exporter for a regulatory delay or violation. Its handling charges must be reasonable and proportional to the service. FEMA penalties are a separate matter decided by the authorities, not by the bank.
Does EDPMS closure affect the e-BRC for a shipping bill?
Under the old Master Direction, para C.30, AD banks generated e-BRCs only from realisation data in EDPMS. That direction was superseded on 1 October 2026, so check your bank and DGFT for the current process. Keeping EDPMS entries accurate still matters for realisation records. See e-BRC on DGFT.
Who closes an EDPMS entry if the exporter changes AD bank?
For advance receipts, Regulation 10(1) says the advance and the later realisation should go through the same AD bank, unless you inform both banks of the change. Tell both banks and give each the shipping bill or invoice details so the bank holding the entry can close it.