GR Waiver / EDF Waiver in Exports
When it comes to exports, Indian exporters often hear terms like GR Form, EDF, and GR Waiver. These terms can be confusing, especially since regulations have evolved over time. Let’s break them down in simple words with examples.
What is GR Form?
Earlier, exporters in India had to submit a document called the GR Form (Guarantee of Realisation) to Customs at the time of export.
It was a declaration that the exporter would realise (bring back) the foreign exchange for the goods exported within the time prescribed under FEMA.
Example:
If an exporter shipped garments worth USD 50,000 to the USA, the GR Form was a commitment that payment would be received in India within the stipulated period.
What is EDF?
With digitalisation, the GR Form has been replaced by the EDF (Export Declaration Form), filed electronically. The purpose remains the same → to ensure that foreign exchange earnings from exports come back to India.
So in today’s practice:
GR Waiver = EDF Waiver (both mean the same thing).
What is a GR / EDF Waiver?
Sometimes, exporters are allowed to ship goods without expecting payment. In such cases, they cannot declare realisation of foreign exchange. For this reason, exporters can apply for a GR Waiver / EDF Waiver.
It is essentially an exemption from filing the GR/EDF declaration for specific categories of exports.
When is GR / EDF Waiver applicable?
According to RBI Master Directions – Export of Goods and Services, Authorised Dealer (AD) Category – I Banks can grant EDF waivers in certain cases.
C.1 Grant of EDF Waiver
AD Category – I banks may consider requests for grant of EDF waiver from exporters as follows:
For Status Holders (general exporters)
Free export of goods (excluding Gems & Jewellery, Articles of Gold, Precious Metals) is allowed up to an annual limit of 2% of the average annual export realisation during the preceding three licensing years.
Example:
If an exporter’s average export realisation for the last 3 years is ₹50 crore, he can send goods worth ₹1 crore free of cost for promotion in one year.
For Gems, Jewellery, Gold and Precious Metals sector
Annual limit is ₹1 crore or 2% of average annual export realisation, whichever is lower.
Example:
If a jeweller has average annual exports of ₹80 crore in the last 3 years →2% = ₹1.6 crore
Limit = lower of ₹1 crore or ₹1.6 crore = ₹1 crore only
For Pharmaceutical products, vaccines and lifesaving drugs
Free of cost supplies to international agencies (UN, WHO-PAHO, etc.) and Government health programmes are allowed up to 8% of average annual export realisation during the preceding three licensing years.
Example:
If a pharma company has average exports of ₹100 crore in the last 3 years, it can send up to ₹8 crore worth of medicines free of cost under EDF waiver.
Important Conditions:
Such free-of-cost exports are not eligible for Duty Drawback or export incentives under any promotion scheme.
Any export of goods that does not involve foreign exchange transaction, directly or indirectly, requires prior EDF waiver from the Reserve Bank of India.
Why is EDF Waiver Important?
Without this waiver, exporters cannot legally ship goods without declaring foreign exchange realisation. The waiver provides a legal route for genuine cases like:
Sending samples abroad for export promotion.
Supplying free medicines for international health causes.
Providing spare parts/replacement items free of cost.
Conclusion
The concept of GR Waiver / EDF Waiver is a regulatory relaxation given to exporters for specific situations where foreign exchange realisation is not expected. Exporters must apply through their AD Category – I bank, and the limits vary based on the sector.
Understanding these rules helps exporters use the facility wisely, remain compliant with FEMA, and still participate in promotional or humanitarian exports where payments are not involved.
