What Is Export Realisation?

Realisation is the point at which an export is fully paid for and the money has reached the exporter through an AD bank. A shipped order or an issued invoice is only a claim until payment arrives. The rules give exporters a fixed period to bring the money in. If a buyer pays part of the invoice, only that part is realised and the balance stays outstanding. Banks track this for every export, so the gap between the export date and the money received is the number that matters. Exporters who expect delays can ask their bank to extend the period before it ends.

For example, a freelancer invoices a client in Canada for USD 3,000 and the client pays USD 2,000 first. The realised amount is USD 2,000, and USD 1,000 remains outstanding until the client pays it.

• Bank compliance: Regulation 5(1) sets nine months from the date of shipment for goods and from the date of invoice for services, and twelve months where the export is invoiced in INR.
• Extension: Under the proviso to Regulation 5(1), the AD bank may allow more time if the exporter requests it and gives reasons for the delay. Ask before the period ends.
• Records: AD banks close or update the matching EDPMS entry once value is realised, as Regulation 4(2) provides, so clear payment references help.
• GST: For a GST refund on exports, ask your tax adviser which proof of payment your officer expects, as realisation rules and GST rules are separate.

Realisation follows a simple path from export to matched payment. The AD bank records the export, receives the foreign payment and links it to the invoice.

1. The exporter ships the goods or raises the invoice for services.
2. The export is recorded with the AD bank, for example through the EDF for services.
3. The buyer pays, and the AD bank receives the inward remittance.
4. The bank matches the receipt to the export using the invoice reference.
5. When the full value is received, the bank closes or updates the entry.
6. If payment is late, the exporter asks the bank for an extension within the permitted period.

Take the start date, add the permitted period, and compare it with the date the money is expected. Use the date of shipment for goods and the invoice date for services, as Regulation 5(1) provides.

1. Pick the start date. Say a service invoice is dated 10 January 2027, which is a hypothetical date.
2. Choose the period: nine months, or twelve if the invoice is in INR.
3. Add nine months to get 10 October 2027 as the last day for realisation.
4. Compare this with the buyer's payment terms and note any gap.
5. If the gap is likely, write to the AD bank with reasons well before 10 October 2027.
6. Use the deadline calculator as a cross-check.

• Invoice equals income: An invoice is not realisation. Realisation happens only when the payment reaches India through an AD bank.
• Period fixed: The AD bank can allow an extension on request under the proviso to Regulation 5(1), so the period is not always final.
• Services exempt: Services are covered too, with the period counted from the invoice date.
• Same for all invoices: INR-invoiced exports get twelve months, while other currencies get nine.

• EDPMS: The AD bank system that matches receipts to exports.
• e-BRC: An electronic certificate of realisation issued through DGFT.
• FIRA: A bank advice confirming a foreign payment was credited.
• EDF: The declaration that records an export with the AD bank.
• Inward remittance: Money received in India from abroad.

Every rule and definition on this page is linked to its official source, checked on the dates below.

1. FEMA (Export and Import of Goods and Services) Regulations, 2026, Notification FEMA 23(R)/2026-RB, Regulation 4(2), Regulation 5(1) and provisos (checked 9 Oct 2026)