New Delhi, Mar 28 (KNN) In a recent interaction, DGFT officials have explained in detail to the RBI the need for easing regulations for e-commerce exporters, including providing them with more time to realise payments in business-to-business (B2B) shipments.

Responding to the recommendations, the RBI has assured that it will revisit the guidelines and provide feedback soon, according to an official from the Commerce Department, reported Businessline.

The DGFT's push for relaxing FEMA guidelines aligns with the broader policy direction of boosting exports through the e-commerce channel. A key aspect discussed is the need to extend the 270-day upper limit, currently in place for normal B2B transactions, for the realisation of foreign exchange in the case of e-commerce exports.

"It is important that the RBI relaxes the 270-day upper limit for the realisation of foreign exchange in case of exports through e-commerce. That is because e-commerce takes place in a slightly different ecosystem and needs more time," the official explained.

The official cited an example where an e-commerce player might not directly export to consumers but instead send goods to an overseas warehouse, from where they are sold later, possibly after a year. In such scenarios, the realisation of foreign exchange would take longer than the current stipulated time frame.

"Hopefully, the RBI will realise the merit of the argument and bring in flexibilities accordingly," the official added.

Furthermore, the RBI is collaborating with the DGFT to allow self-declaration-based electronic Bank Realisation Certificates (e-BRCs) for e-commerce players, especially those dealing with a large number of small-value orders.

Currently, banks have to upload the e-BRCs on the DGFT system upon the realisation of export payments, which is a time-consuming process.

The proposed relaxations in FEMA guidelines aim to facilitate smoother operations for e-commerce exporters, recognising the unique nature of their business model and the need for greater flexibility in realising foreign exchange earnings.

(KNN Bureau)