Glossary: the terms of foreign trade compliance
Short definitions of the words your bank, your CA and the regulations use, each linked to the guide or page that explains it in full.
- AD bank
An Authorised Dealer Category I bank: a bank licensed by RBI to deal in foreign exchange. It examines your documents, makes or receives the payment, reports it to RBI and closes the matching IDPMS or EDPMS entry.
- Bill of Entry
The customs declaration for goods imported into India. In IDPMS your AD bank matches it to the outward remittance that pays for it.
- Caution list
RBI's former list of exporters with long-unrealised proceeds. From 1 October 2026, proceeds still unrealised a year after the due date mean further exports only against a full advance or an irrevocable letter of credit.
- eBRC
The electronic Bank Realisation Certificate, generated through DGFT's system from the bank's realisation data, confirming the money was realised against a specific export.
- ECB and Form ECB 2
External commercial borrowing: a loan raised from abroad. Drawdown needs a loan registration number, and Form ECB 2 reports proceeds and debt service each month.
- EDF
The Export Declaration Form. From 1 October 2026 every services exporter, software included, declares invoices on it; one EDF can cover a month's invoices and is due within 30 days of the month's end.
- EDPMS
The Export Data Processing and Monitoring System: RBI's database that opens an entry for every Shipping Bill and keeps it open until your AD bank reports the export proceeds against it. For exports from 1 October 2026 the value is due within nine months, or twelve when invoiced or settled in rupees.
- EEFC account
An Exchange Earners' Foreign Currency account: an account in which an exporter can keep part of its foreign currency earnings in that currency instead of converting them.
- FC-GPR and FC-TRS
Forms filed on RBI's FIRMS portal: FC-GPR reports equity issued as foreign direct investment, within 30 days of issue; FC-TRS reports a transfer between a resident and a non-resident.
- FIRC and FIRA
The bank's certificate that a foreign remittance reached your account. It proves only that money arrived; the eBRC links it to an export.
- FLA return
The annual return on foreign liabilities and assets, filed with RBI on FLAIR by every Indian entity with FDI or ODI outstanding on either of the last two 31 Marches.
- Form 145
The declaration filed on the income-tax portal before paying a non-resident, formerly Form 15CA. Its part depends on whether the payment is chargeable to tax in India and on the year's total.
- Form 146
A chartered accountant's certificate, formerly Form 15CB, needed for Part C of Form 145: a taxable payment above ₹5 lakh in the year without a tax officer's certificate.
- Form A1
The application to the AD bank for a payment for goods imported into India.
- Form A2
The application to the AD bank for every other outward remittance, including services, royalties and the import leg of a merchanting trade.
- FX spread
The gap between the rate your bank applies and the mid-market rate at that moment.
- IDPMS
The Import Data Processing and Monitoring System: RBI's database where your AD bank records every outward remittance for imports and every Bill of Entry, and matches the two. Payment is due within the period agreed in the contract; FxLayer uses 180 days where none is set. Only the bank closes an entry.
- IEC
The Importer Exporter Code issued by DGFT, needed to import or export goods. A freelancer exporting services needs none.
- IRM
The inward remittance message your AD bank reports for money received from abroad. On DGFT's portal you link an IRM to the Shipping Bill or services invoice it paid to generate the eBRC.
- Merchanting trade (MTT)
A purchase of goods from one foreign country and their sale to another without the goods entering India, with both legs through the same AD bank.
- ODI and the APR
Overseas direct investment, reported on Form FC with a UIN taken before the first remittance, and the annual performance report that follows it.
- Purpose code
The RBI code that classifies every foreign exchange payment: codes starting with S for money going out of India, P for money coming in. It decides the forms and which open items a payment settles.
- Realisation
Receiving the full value of an export. For exports from 1 October 2026 it is due within nine months, or twelve when invoiced or settled in rupees.
- RoDTEP, Drawback and RoSCTL
Export incentives notified as rates per tariff line: Remission of Duties and Taxes on Exported Products, Duty Drawback and the Rebate of State and Central Taxes and Levies. The claim is made on ICEGATE.
- Shipping Bill
The customs declaration for goods exported from India. It opens an EDPMS entry that stays open until the proceeds are reported against it.
- SOFTEX
The form software exporters filed before 1 October 2026, when it was discontinued in favour of the monthly EDF.
- TRC
A tax residency certificate from the payee's country. With the prescribed declaration, and a no-PE declaration for business income, it lets a lower treaty rate apply to a payment abroad.