Purpose Codes for Export Transactions

Purpose Codes in detail — especially P0104 (Export of goods) — which are required for foreign remittances under FEMA/RBI regulations.

🏦 1. What is a Purpose Code?

A Purpose Code is a standardized code prescribed by the Reserve Bank of India (RBI) to identify the nature of a cross-border transaction — whether it’s for exports, imports, services, loans, investments, etc.

These codes are used by Authorized Dealer (AD) Banks to report every foreign exchange transaction to the RBI through:

  • EDPMS (Export Data Processing and Monitoring System) for exports, and

  • IDPMS (Import Data Processing and Monitoring System) for imports.

🌍 2. Purpose Codes for Export Transactions

When you receive a foreign inward remittance against an export, your AD Bank must enter the correct Purpose Code while reporting the transaction.

Here are the most common export-related purpose codes 👇

Purpose Code Description (as per RBI) Used For
P0104 Export of goods For physical export of goods declared under Shipping Bill.
P0105 Export of goods by Special Economic Zone (SEZ) units When exporter is in SEZ.
P0801 Receipt for services rendered – Software exports IT, software, SaaS exports.
P0802 Business and management consultancy services Professional / consultancy service exports.
P0805 Telecommunication services Export of telecom or BPO services.
P0809 Other business services (not elsewhere classified) Miscellaneous service exports.
P1007 Receipts for maintenance and repair of goods After-sales service / maintenance contracts.
P1011 Receipts for transport (freight, shipping, etc.) Shipping line / freight forwarder exports.

📦 3. Example – Use of P0104 (Export of Goods)

When you export goods and your buyer remits payment, the bank must report the remittance under Purpose Code P0104.

Details captured by AD Bank:

Field Example
Remitter Name ABC Importers Ltd., UK
Amount USD 25,000
Purpose Code P0104 – Export of goods
Invoice No. INV-45 / 20-Jul-2025
Shipping Bill No. 1234567 / 20-Jul-2025
Currency USD
FIRC No. FIRC/2025/9876

✅ This ensures the payment is correctly linked to your export shipment in EDPMS and counted as export realisation under FEMA and DGFT rules.

⚙️ 4. Why Purpose Codes Are Important

Reason Explanation
FEMA Compliance RBI monitors forex flows through these codes.
EDPMS Closure Helps banks match remittance with shipping bills.
GST Refund / DGFT Benefits Ensures export proceeds are properly realized and verifiable.
Audit Trail Confirms nature of transaction for statutory auditors.

💡 5. Tips for Exporters

  • Always mention Purpose Code P0104 (or relevant code) in your invoice, shipping documents, and communication with buyer/bank.

  • When instructing your buyer for remittance, include:

    “Purpose Code P0104 – Export of Goods”
    in the payment message / SWIFT instructions.

  • If the wrong code is used (e.g., service code instead of goods), request your bank to rectify it immediately, otherwise EDPMS linking may fail.

✅ Summary Table

Particular Details
Form Used FIRC / BRC (issued by AD Bank)
System EDPMS (Export Data Processing and Monitoring System)
Purpose Code for Export of Goods P0104
Issued by Authorized Dealer (AD) Bank
Linked with Shipping Bill, Invoice, Realisation amount
Regulation RBI FEMA – A.P. (DIR Series) Circulars


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