RBI Amends FEMA Regulations to Permit Temporary Export of Offshore Support Vessels with Re-import Requirement [Read Notification]
RBI allows the temporary export of offshore support vessels under FEMA, provided they are re-imported into India, easing compliance for maritime operators
Reserve Bank of India, foreign exchange management act, Temporary Export
Reserve Bank of India, foreign exchange management act, Temporary Export
The Reserve Bank of India (RBI) issued Notification No. FEMA 23(R)/(6)/2025-RB dated June 24, 2025, amending the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015, permitting the temporary export of offshore support vessels, tugs, tug boats, and dredgers, subject to their re-import into India.
This amendment is to remove ambiguity and align foreign exchange regulations with the practical needs of the Indian shipping and offshore industries.
Key Amendment
The RBI, exercising its powers under Section 7 and Section 47(2)(b) of FEMA, inserted a new sub-clause in Regulation 4 of the principal regulations as follows:
“ca) Tugs or Tug Boats, Dredgers and Vessels used for providing offshore support services, subject to their re-import into India.”
This means Indian entities can now export these vessels temporarily for offshore assignments without violating FEMA provisions. The condition of mandatory re-import ensures that such vessels remain part of India’s shipping assets while allowing them to engage in international operations.
The amendment simplifies the compliance process for Indian shipping companies and offshore service providers who regularly deploy vessels outside India for projects and then re-import them. India’s offshore oil, gas, and renewable energy projects often require the deployment of support vessels abroad. This clarity will reduce procedural hurdles under FEMA.
Many countries permit the temporary export of vessels for overseas contracts, and this move aligns India’s foreign exchange regulatory framework with international norms. Previously, the absence of explicit provisions led to uncertainties regarding export proceeds realization and reporting obligations under FEMA. This amendment resolves such ambiguities.
Background: The Foreign Exchange Management Act (FEMA), 1999, regulates foreign exchange transactions, including exports from India. Under the earlier regime, while goods and services exports were regulated, there was a lack of explicit clarity regarding the temporary export of vessels used in offshore support services, often resulting in procedural delays and compliance concerns for businesses engaged in such operations.
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