RBI Eases Export Rules for Offshore Vessels

Notification No. FEMA 23(R)/(6)/2025-RB; Dated: 24.06.2025

The Reserve Bank of India (RBI) has issued a notification introducing the Foreign Exchange Management (Export of Goods and Services) (Amendment) Regulations, 2025, thereby updating the compliance framework for export transactions under FEMA.

1. Key Amendment to Regulation 4 – Exemptions from Export Declarations

The amendment specifically pertains to Regulation 4, which outlines circumstances where exporters are exempted from furnishing export declarations to Authorised Dealers or regulatory authorities. Regulation 4 plays a critical role in simplifying procedural requirements for specific categories of exports where formal declarations are not essential.

2. New Categories Included Under Exemption

Through this amendment, the RBI has expanded the list of exempted categories to include the following:

• Tugs
• Tug Boats
• Dredgers
• Vessels used for providing offshore support services

This move is aimed at facilitating ease of doing business in maritime and offshore support sectors, which are often engaged in cross-border assignments requiring frequent movement of specialised vessels.

3. Condition for Exemption – Mandatory Re-Importation

While the exemption eases the documentation burden, the RBI has laid down a critical condition:

These vessels must be re-imported into India after the completion of their overseas assignment.

This condition ensures that the exemption is not misused for permanent export or sale of such high-value assets without declaration.

4. Implications for Exporters and Offshore Operators

This regulatory update provides significant procedural relief for businesses engaged in:

• Offshore oil and gas exploration
• Port construction and dredging
• Marine logistics and support
• International towing and rescue operations

Such entities can now avoid the cumbersome process of furnishing export declarations for eligible vessels, provided they comply with the re-import clause.

5. Conclusion

The RBI’s amendment to Regulation 4 under FEMA (Export of Goods and Services) aims to streamline regulatory compliance, particularly for India’s growing maritime and offshore services sector. Businesses should ensure strict adherence to the re-import requirement to avail themselves of this exemption effectively.

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