Government Notifies Inventory-Based Cross-Border E-Commerce Export Framework Under Foreign Trade Policy 2023

Key Highlights:

• The Government operationalized the Inventory-based Cross-border E-Commerce Export Framework.
• This framework falls under the Foreign Trade Policy (FTP) 2023.
• It was notified through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both dated August 5, 2026.
• The framework facilitates inventory-based e-commerce exports of goods manufactured or produced in India.
• It aims to provide global market access for Indian manufacturers, artisans, and MSMEs.

Detailed Insights:

• The framework follows an amendment to the FDI Policy (Press Note No. 3 (2026 Series)) permitting inventory-based e-commerce exclusively for exports.
• Eligible e-commerce entities undertake export-only operations through a registered Exporter-on-Record (EOR).
• The EOR procures goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders and manages all export formalities.
• This reduces the burden on Indian sellers by delegating documentation, customs, compliance, logistics, and reverse logistics to the EOR.
• Safeguards include prohibiting speculative inventory build-up and ensuring distinct identification and segregation of export inventory.
• Export inventory cannot be diverted for sale in the domestic market, ensuring focus on international trade.
• The framework mandates timely payments to sellers and transparent pass-through of export rebates and refunds.
• It requires annual compliance certification and maintenance of digital records for traceability and oversight.

Key Concepts Involved:

• Foreign Trade Policy (FTP): A set of guidelines and instructions established by the Directorate General of Foreign Trade (DGFT) for the import and export of goods in India.
• Exporter-on-Record (EOR): An entity registered under the framework responsible for undertaking exports, compliance, and logistics on behalf of Indian sellers.
• Seller-on-Record (SOR): An Indian manufacturer, artisan, or MSME that supplies goods to an EOR for cross-border e-commerce exports.
• MSMEs: Micro, Small, and Medium Enterprises, defined based on investment in plant and machinery/equipment and turnover.