Importers and Exporters are allowed to book forward contracts on the basis of a declaration of an exposure and based on past performance up to the average of the previous three financial years’ (April to March) actual import/export turnover or the previous year’s actual import/export turnover, whichever is higher.

The forward contracts booked in the aggregate during the year and outstanding at any point of time should not exceed the eligible limit i.e. the average of the previous three financial years’ (April to March) actual import/export turnover or the previous year’s actual import/export turnover, whichever is higher. Contracts booked in excess of 75 per cent of the eligible limit will be on deliverable basis and cannot be cancelled. These limits shall be computed separately for import/export transactions. The Forward contract limit is an annual cumulative limit.  The limit will get reduced to the extent of booking under the past performance facility and shall not be reinstated.