Export of goods and services
Section 7 of the Foreign Exchange Management Act, 1999 deals with export of goods and services. Every exporter of goods shall-- (a) furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specified, containing true and correct material particulars, including the amount representing the full export value or, if the full export value of the The Act came into force on 01 Jun 2000.
(1) Every exporter of goods shall--
(a) furnish to the Reserve Bank or to such other authority a declaration in such form and in such manner as may be specified, containing true and correct material particulars, including the amount representing the full export value or, if the full export value of the goods is not ascertainable at the time of export, the value which the exporter, having regard to the prevailing market conditions, expects to receive on the sale of the goods in a market outside India;
(b) furnish to the Reserve Bank such other information as may be required by the Reserve Bank for the purpose of ensuring the realisation of the export proceeds by such exporter.
(2) The Reserve Bank may, for the purpose of ensuring that the full export value of the goods or such reduced value of the goods as the Reserve Bank determines, having regard to the prevailing market conditions, is received without any delay, direct any exporter to comply with such requirements as it deems fit.
(3) Every exporter of services shall furnish to the Reserve Bank or to such other authorities a declaration in such form and in such manner as may be specified, containing the true and correct material particulars in relation to payment for such services.
Section 7, The Foreign Exchange Management Act, 1999 (Act 42 of 1999).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Bharat Carpets vs Director, Enforcement Directorate
Court's Decision & Legal Precedent
An exporter is under a statutory obligation to repatriate the full export value of goods within the prescribed period, and non-realisation raises a rebuttable presumption against the exporter which can be discharged only by material showing that all reasonable steps were taken; the alleged negligence of the authorised banker in delivering the goods against a substituted consignee did not by itself discharge that burden, and the penalty was sustained.
On this section: States the exporter's duty to realise and repatriate the full export value and the presumption and reasonable-steps defence attaching to it, the obligation re-enacted in FEMA Section 7 as the duty to furnish a true declaration of full export value and to take all reasonable steps to realise it.
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Ganesh Polytex Ltd., ORS vs Uoi, Anr.
Court's Decision & Legal Precedent
The presumption of contravention arising from non-realisation of export proceeds within the prescribed six-month period is rebuttable, and an exporter who shows reasonable steps to receive and recover payment for goods that the carrier failed to deliver answers the charge; separately, the adjudication was vitiated because the Adjudicating Officer had not been authorised as the rules required, a jurisdictional defect going to the foundation of the proceedings.
On this section: Construes the exporter's duty to realise export proceeds within the prescribed period and the scope of the reasonable-steps defence, the obligation now carried by FEMA Section 7.
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Dinkar Dogra vs Director of Enfrocement, Enforcement Directorate
Court's Decision & Legal Precedent
A director who retained a beneficial interest in the export consignment remained liable for non-realisation of the export proceeds notwithstanding his resignation from the board; the statutory presumption was not rebutted because no reasonable steps to recover payment were demonstrated, and a pending application to the Reserve Bank for offset did not excuse the contravention.
On this section: Applies the export-proceeds realisation obligation and the reasonable-steps defence, now contained in FEMA Section 7, to fix continuing liability on a person beneficially interested in the export.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 2 instruments name this provision in its title or its text without being made under it.
Questions about Section 7
What have the courts held on Section 7 of the Foreign Exchange Management Act?
Bharat Carpets vs Director, Enforcement Directorate is the leading judgment on this section among those set out below: States the exporter's duty to realise and repatriate the full export value and the presumption and reasonable-steps defence attaching to it, the obligation re-enacted in FEMA Section 7 as the duty to furnish a true declaration of full export value and to take all reasonable steps to realise it. Another 2 judgments on this section are set out below, 1 of them from the Supreme Court. They run from 2008 to 2010.
How do I find court cases under Section 7 of the Foreign Exchange Management Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Fema 7, section 7 Fema, section 7 of the Foreign Exchange Management Act. People searching for it also type section 7 of the foreign exchange management act 1999. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Bharat Carpets vs Director, Enforcement Directorate.
What should I read with Section 7 of the Foreign Exchange Management Act, and has it changed?
1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there is one: most recently the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015. (2016).
When did Section 7 of the Foreign Exchange Management Act come into force?
Section 7 of the Foreign Exchange Management Act, cited as Fema 7, came into force on 01 Jun 2000, having been enacted on 29 Dec 1999. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions1265 words
- 14. Enforcement of the orders of Adjudicating Authority837 words
- 13. Penalties496 words
- 10. Authorised person489 words
- 49. Repeal and saving475 words
- 19. Appeal to Appellate Tribunal465 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 17 Oct 2026. This page is not a substitute for legal advice.