CBIC Extends Export Incentives to Postal Shipments In A Boost To E-Commerce Sector

In a significant policy push aimed at widening India's export base, the Central Board of Indirect Taxes and Customs (CBIC) has extended key export incentives to shipments made through the postal route, effective January 15, 2026. The move brings postal exports within the ambit of Duty Drawback, the Remission of Duties and Taxes on Exported Products (RoDTEP), and the Rebate of State and Central Taxes and Levies (RoSCTL) schemes.

The decision is expected to materially improve the competitiveness of micro, small and medium enterprises (MSMEs), particularly exporters based in smaller towns and remote regions, while giving a fresh boost to India's fast-growing cross-border e-commerce segment.

Level Playing Field for MSME Exporters

Until now, exporters using courier and traditional shipping channels were better placed to access export-linked incentives, while those relying on the postal mode faced structural disadvantages. By extending these benefits to postal shipments made through electronic declarations, CBIC aims to create a more inclusive export ecosystem and remove cost distortions between logistics channels.

Officials said the measure would particularly benefit small sellers, artisans and first-time exporters who depend on India Post's extensive network for international shipments. For many such businesses, the postal route remains the most affordable and accessible gateway to overseas markets.

Part of a Broader E-Commerce Export Push

To operationalise the incentives, CBIC has approved amendments to the Postal Export (Electronic Declaration and Processing) Regulations, 2022. These changes allow exporters using the postal mode to electronically claim Duty Drawback, RoDTEP and RoSCTL benefits.

The extension of incentives is the latest step in a series of reforms undertaken by the Government of India to modernise India's e-commerce export ecosystem. A dedicated chapter on “Promoting Cross-Border Trade in the Digital Economy” was introduced in the Foreign Trade Policy 2023, outlining support mechanisms such as courier exports, postal exports, e-commerce hubs and Dak Niryat Kendras.

India currently has 28 Foreign Post Offices notified under the Customs Act, 1962. Over the past few years, CBIC has focused on digitising and simplifying postal trade, including the rollout of end-to-end electronic processing for postal exports in 2022, notification of Postal Import Regulations in 2025, and automation of IGST refunds for postal exports in September 2024.

Dak Niryat Kendras and the Road Ahead

To further scale e-commerce exports, CBIC and the Department of Posts introduced a ‘Hub and Spoke' model in December 2022. Under this framework, more than 1,000 Dak Niryat Kendras across the country facilitate booking, aggregation and processing of export parcels, providing last-mile export infrastructure to MSMEs.

With export incentives now extended to postal shipments, policymakers believe the reform will lower costs, simplify procedures and accelerate the participation of small exporters in global e-commerce. 

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