EEPC India welcomes reforms to ease compliance burden for small exporters

New Delhi, Oct 3 (IANS) Industry association Engineering Export Promotion Council of India (EEPC India) on Friday welcomed the relaxation of Merchanting Trade Transaction (MTT) rules, saying that it would significantly improve the ease of doing business, particularly for small exporters and retailers.

The Reserve Bank of India (RBI) has eased the MTT rules by extending the time period for outlay of foreign exchange from four to six months, effective as of October 1, 2025.

The central bank also simplified the process for the timely closure of entries in the Export Data Processing and Monitoring System (EDPMS) and Import Data Processing and Monitoring System (IDPMS) for transactions up to Rs 10 lakh per bill.

EEPC India said that the decision will significantly ease the compliance burden for small exporters and provide flexibility to merchant traders

"The reforms introduced by the RBI were long-pending demands of EEPC India. The move is set to reduce compliance burden for MSME exporters and ensure procedural flexibility for traders," EEPC Chairman Pankaj Chadha said.

Under the new rule, entries (including outstanding entries) in EDPMS and IDPMS of a value up to Rs 10 lakh can be reconciled and closed based on a declaration provided by the exporter concerned that the amount has been realised or by the importer that the amount has been paid.

Any reduction in the declared value or invoice value of the shipping bills or bills of entry shall also be accepted, based on the declaration by the exporter or importer concerned.

The RBI has taken several other steps recently to boost trade, including the promotion of the Indian rupee (INR) in the settlement of cross-border trade. It sets a reference rate for the rupee against the currencies of major trade partners.

Chadha said that all these measures would give a big push to trade and investment, besides helping the Indian rupee go globally gradually.

--IAN

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