India Operationalises Inventory-Based Cross-Border E-Commerce Export Framework

The Government of India has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023, on August 5, 2026. The framework establishes a policy and procedural structure for facilitating inventory-based cross-border e-commerce exports of goods manufactured or produced in India.

The move follows the amendment to the Foreign Direct Investment (FDI) Policy, which permits inventory-based e-commerce operations exclusively for exports. The framework is intended to support Indian manufacturers, artisans, traders and MSMEs seeking access to global markets.

Inventory-Based Cross-Border E-Commerce Export Framework

The newly operationalised framework allows eligible e-commerce entities to undertake export-only inventory operations through a registered Exporter-on-Record (EOR). Under this arrangement, the EOR procures goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders and exports them in its own name.

The EOR is responsible for export execution and compliance with destination-country regulations. The framework aims to create an organised mechanism for cross-border e-commerce exports while ensuring accountability and regulatory compliance.

Indian Sellers Supported by the Exporter-on-Record Model

The framework enables Indian sellers to access international markets while delegating export-related responsibilities to the EOR. These responsibilities include export documentation, customs procedures, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics.

By shifting these operational requirements to the EOR, sellers can focus on manufacturing, product development and innovation. The framework also seeks to reduce compliance burdens and simplify access to overseas consumers through established fulfilment networks.

Safeguards Introduced for MSMEs and Indian Manufacturers

The policy incorporates multiple safeguards to ensure that the benefits of e-commerce exports are directed towards Indian manufacturers and MSMEs. Export inventory can be procured only against confirmed export orders, preventing speculative inventory accumulation for export purposes.

The inventory must be distinctly identified, segregated and maintained through a digital repository to ensure complete traceability. Additionally, export inventory cannot be diverted for sale in the domestic market, strengthening regulatory oversight and compliance monitoring.

Payment Transparency and Export Benefit Distribution Rules

The framework provides for timely payments to Indian sellers within the prescribed timeline, irrespective of when payment is received from overseas buyers. It also mandates that export rebates and refunds be apportioned and passed on to Sellers-on-Record in proportion to the FOB value attributable to their goods.

Sellers are granted visibility into the final sale price, order status and shipment tracking of their products. The framework further requires annual compliance certification, maintenance of digital records and prescribed handling of returned or rejected consignments through re-export, return to the seller or other approved procedures.

Read More: India-UK CETA Opens Duty-Free Access for Over 1.1 Million Tonnes of Steel Exports.

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Conclusion

The operationalisation of the Inventory-based Cross-border E-Commerce Export Framework marks a significant development in India's export ecosystem under FTP 2023. The framework establishes a structured mechanism for inventory-based e-commerce exports through registered Exporters-on-Record while providing safeguards for Indian sellers and manufacturers.

Features such as traceability requirements, timely payments, transparency in sales information and pass-through of export benefits are intended to strengthen confidence among participating businesses. The initiative is expected to support broader participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains while maintaining regulatory oversight.

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