# Export and Import under FEMA

The definitions of export and import under FEMA are wider than under customs law because they cover services as well as goods.

## Export [Section 2(l)]

Export means EITHER:

1. Taking out of India to a place outside India any goods, OR

2. Provision of services from India to any person outside India (PROI)

## Import [Section 2(p)]

Import means bringing any goods OR services into India.

## Comparison with Customs Law

Aspect	FEMA	Customs Act
Coverage	Goods AND Services	Primarily Goods
Reason	Forex inflow/outflow on services is equally important	Duty levy on physical goods

## Key Pedagogical Point

FEMA cares about foreign exchange movement, not physical movement. So when an Indian software company writes code in India for a US client, no goods physically leave India — but it IS an export under FEMA because forex flows in for services rendered from India.

Worked example

### Example 1

Example 1 (Export of Goods): A Mumbai-based exporter ships textile to Germany. This is export under FEMA — goods taken out of India to a place outside India.

### Example 2

Example 2 (Export of Services): Infosys (India) provides IT consulting services to a UK client. The work is done from India for a PROI. This is export of services under FEMA — even though nothing physically leaves India.

### Example 3

Example 3 (Import of Services): An Indian company avails legal advisory services from a US law firm. Services brought into India = import under FEMA.

⚠️ Common exam mistakes

Treating only goods as exports/imports — services are equally covered.
Forgetting that 'provision of services from India to a PROI' is essential — providing services to a fellow resident is not export.
Equating FEMA export definition with the Customs Act definition.

Bare-Act text Section 2(l) & 2(p) · Foreign Exchange Management Act, 1999 · click to expand

"Export", with its grammatical variations and cognate expressions, means— (i) the taking out of India to a place outside India any goods, (ii) provision of services from India to any person outside India. "Import" means bringing any goods or services into India.

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Section 2 - Definition of Export and Import

Worked example

⚠️ Common exam mistakes