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The government has operationalised the inventory-based cross-border e-commerce export framework under the Foreign Trade Policy (FTP) 2023, enabling eligible e-commerce entities to undertake export-only inventory operations through registered Exporters-on-Record (EORs), according to a release by the Ministry of Commerce and Industry.
The framework, notified through Notification No. 27/2026-27 and Public Notice No. 25/2026-27 dated August 5, 2026, provides the policy and procedural framework for facilitating inventory-based cross-border e-commerce exports of goods manufactured or produced in India. According to the ministry, the framework has been introduced following the amendment to the FDI Policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports. Under the framework, registered Exporters-on-Record will procure goods from Indian Sellers-on-Record against confirmed overseas orders, undertake exports in their own name and be responsible for export operations as well as compliance with destination-country regulations. The ministry said the framework is intended to help Indian sellers access global markets by allowing them to delegate export documentation, customs formalities, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics to the Exporter-on-Record. It added that the framework includes several safeguards to ensure transparency and regulatory oversight. Export inventory can be procured only against confirmed overseas orders, while speculative inventory build-up for exports has not been permitted. The inventory must also be separately identified, digitally recorded and cannot be diverted for sale in the domestic market. The framework further provides for timely payments to Indian sellers within the prescribed timeline, irrespective of when payment is received from overseas buyers. It also requires export rebates and refunds to be passed on to Sellers-on-Record in proportion to the FOB value of their goods. Sellers will also have visibility into the final sale price, order status and shipment tracking of their products. The ministry said returned or rejected consignments must be re-exported, returned to the seller or disposed of under prescribed procedures. Annual compliance certification and maintenance of digital records have also been mandated to strengthen transparency and enforcement. According to the ministry, the framework is expected to facilitate greater participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains by improving access to organised fulfilment networks while ensuring transparency, timely payments and effective regulatory oversight. (ANI)
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