- The Centre introduced a framework for inventory-based cross-border e-commerce exports.
- Eligible e-commerce entities can export through a registered Exporter-on-Record (EOR).
- Goods must be procured only against confirmed international orders to prevent stockpiling.
The Centre has introduced a framework for inventory-based cross-border e-commerce exports, seeking to expand global market access for Indian manufacturers, traders and MSMEs while ensuring greater oversight of export operations.
The new framework follows the government's earlier amendment to the foreign direct investment policy, permitting inventory-based e-commerce operations exclusively for exports, according to an official release.
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Under the new guidelines, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record (EOR).
The EOR will procure goods from Indian Sellers-on-Record (SORs) only against confirmed overseas orders, export the products in its own name and assume responsibility for customs procedures, export documentation and compliance with regulations in destination countries.
According to the PIB, the framework is designed to simplify cross-border trade for Indian businesses by allowing exporters to handle packaging, labelling, product testing, certification, logistics, fulfilment and reverse logistics on behalf of sellers.
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This is expected to reduce compliance burdens and enable manufacturers and MSMEs to focus on production and expanding into overseas markets. The policy also introduces several safeguards to ensure transparency and prevent misuse.
Export inventory can be procured only against confirmed international orders, prohibiting speculative stockpiling. Goods earmarked for export must be digitally recorded, clearly segregated and remain traceable throughout the supply chain. Such inventory cannot be diverted for sale in the domestic market.
To protect Indian sellers, the framework mandates that they receive payments within the prescribed timeline irrespective of when overseas buyers make payments. It also requires export incentives, rebates and refunds to be passed on to sellers in proportion to the free-on-board (FOB) value of their goods. Sellers will also have visibility into the final sale price, shipment status and order tracking.
The framework further lays down procedures for handling returned consignments and requires annual compliance certification along with the maintenance of digital records.
According to the PIB, the measures are expected to deepen India's integration into global e-commerce supply chains while ensuring accountability, transparency and timely benefits for domestic exporters.
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