Government of India Launches Cross-border E-Commerce Export Framework
The Government of India has officially activated the Inventory-based Cross-border E-Commerce Export Framework as part of the Foreign Trade Policy (FTP), 2023, via Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both issued on August 5, 2026.
This framework establishes an intricate policy and procedural blueprint aimed at facilitating cross-border e-commerce exports for goods that are either manufactured or produced in India.
The swift expansion of cross-border e-commerce offers an unprecedented opportunity for Indian manufacturers, artisans, and MSMEs to penetrate global markets.
This development follows the modification of the FDI Policy, enacted through Press Note No. 3 (2026 Series), which exclusively permits inventory-based e-commerce operations designated for exports.
The government has consequently implemented the relevant regulatory framework under the Foreign Trade Policy, thereby enabling these exports while also protecting the interests of Indian sellers.
According to the framework, eligible e-commerce entities are authorized to conduct export-only inventory operations via a registered Exporter-on-Record (EOR).
The EOR sources goods from Indian Sellers-on-Record (SORs) based on confirmed overseas orders, performs exports in its own name, and assumes total responsibility for export activities as well as adherence to destination-country regulations.
By utilizing a registered Exporter-on-Record, Indian sellers can enter overseas markets while entrusting essential tasks such as export documentation, customs procedures, compliance with destination-country regulations, product testing and certification, packaging, labeling, fulfillment, logistics, and reverse logistics to the EOR.
This framework guarantees timely payments to sellers, ensures transparency in foreign sales, and holds accountability for export compliance.
Such measures are designed to lower compliance costs and allow Indian enterprises to concentrate on production and innovation while broadening their global market reach.
The framework integrates multiple safeguards intended to ensure that the benefits of e-commerce exports favor Indian manufacturers and MSMEs without compromising regulatory oversight.
Export inventory can only be acquired against confirmed export orders, with prohibitions against speculative inventory accumulation for export purposes.
Furthermore, the export inventory must be clearly defined, segregated, and maintained in a digital repository, ensuring complete traceability. Any export inventory must not be redirected for domestic sales.
Additionally, the framework stipulates that Indian sellers will receive timely payments within the designated timeframe, independent of when payment is received from overseas buyers.
Export rebates and refunds must be allocated and transferred to the Sellers-on-Record proportional to the FOB value linked to their goods.
Moreover, sellers will have insight into the final sale price, order status, and shipment tracking of their products.
In cases of returned or rejected consignments, these must be re-exported, returned to the seller, or disposed of according to prescribed procedures.
To bolster transparency and regulatory adherence, the framework requires annual compliance certifications and the maintenance of digital records.
This framework is anticipated to enhance the participation of Indian manufacturers, traders, and MSMEs in global e-commerce supply chains.
It aims to provide access to organized fulfillment networks while ensuring transparency, timely payments, an effective allocation of export benefits, and stringent regulatory oversight.
Source link: Indiashippingnews.com.
