RBI Amends FEMA to Permit Export and Re-Import of Offshore Support Vessels

The Reserve Bank of India (RBI) has issued Notification No. FEMA 23(R)/(6)/2025-RB, amending the Foreign Exchange Management (Export of Goods & Services) Regulations, 2015. The amendment now explicitly permits the export of tugs, dredgers, and offshore support vessels, provided they are re-imported into India.

This notification, dated 24 June 2025, and published in the Gazette under the Foreign Exchange Management Act, 1999, aligns RBI regulations with operational realities faced by Indian shipping and dredging companies operating in international waters.

Key Highlights of the Amendment

Regulation Amended: Regulation 4 of the FEMA 23(R)/2015-RB regulations

Insertion:

Sub-regulation (ca): “Tugs or Tug Boats, Dredgers and Vessels used for providing offshore support services, subject to their re-import into India.”

Date of Enforcement: From the date of publication in the Official Gazette, i.e., 24 June 2025.

Rationale Behind the Amendment

Operational Flexibility: Offshore marine service providers often deploy vessels temporarily outside India for oil & gas exploration, dredging, port construction, or cable laying.
Export Classification Compliance: Earlier, such deployments created ambiguity regarding foreign exchange realization timelines and reporting, as vessels were not exported in the traditional commercial sense.
Regulatory Clarity: The amendment brings these movements under the fold of permissible “exports” under FEMA, subject to the condition of re-import, avoiding violation of FEMA provisions.

Impact on Stakeholders

Offshore Support Service Providers

Can now send Indian-registered vessels abroad without FEMA compliance hurdles, as long as re-import is ensured.
Better aligned with DG Shipping and Customs frameworks.

Exporters & Ship Owners

Exports of services involving temporary overseas deployment of equipment are now deemed FEMA-compliant.
Avoids classification confusion between export of goods vs. temporary service deployment.

Banks & AD Category I Dealers

Enhanced clarity in export documentation, shipping bills, and EPRC (Export Performance Realisation Certificate) issuance.
Can facilitate remittance settlements more efficiently for companies in the marine sector.

Legal and Compliance Considerations

Re-import mandatory: The permission is conditional upon the return of the exported vessel.
Documentation: Shipping Bills, temporary export documents, and re-import Bills of Entry must be accurately recorded.
Foreign Exchange Reporting: As per Regulation 6 of FEMA 23(R), realization timelines may not apply if the export is not for sale but for temporary deployment.

Alignment with National Maritime Strategy

This FEMA amendment supports:

India’s Maritime India Vision 2030 and Sagarmala initiative, which emphasize global competitiveness of Indian shipping.
Efforts to increase Indian flag vessel participation in global offshore operations.

Conclusion

The FEMA 23(R)/(6)/2025-RB amendment is a welcome regulatory update from the Reserve Bank of India, removing grey areas in export regulation for the marine services industry. By recognizing temporary offshore deployment as export, it aligns India’s foreign exchange regulations with modern maritime business practices.

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Source: RBI

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