CBIC Boosts MSME E-Commerce Exports Via Postal Channel Incentives

New Delhi, Jan 16 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has extended export-related benefits under various schemes, in a significant boost to India’s e-commerce and MSME exports.

It include Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to convert exports made through the postal mode in electronic form, with effect from January 15, 2026.

Level Playing Field for MSME and Small Exporters

The move aims to provide a level playing field for exporters using the postal channel and create a more inclusive ecosystem for cross-border e-commerce. 

It is expected to enhance the competitiveness of MSME exporters, particularly those based in smaller towns and remote areas, while giving a major boost to postal exports.

Regulatory Amendments to Enable Benefits

To enable these benefits, the CBIC has approved amendments to the Postal Export (Electronic Declaration and Processing) Regulations, 2022, permitting exporters to claim Duty Drawback, RoDTEP and RoSCTL incentives on postal exports. 

A notification detailing the changes and their operational framework was issued on January 15, 2026.

In recent years, the Government of India has introduced a range of policy initiatives, digital reforms and regulatory measures to bolster the e-commerce export ecosystem.

The Foreign Trade Policy 2023 introduced a dedicated chapter, ‘Promoting Cross-Border Trade in the Digital Economy,’ offering a comprehensive framework to facilitate exports via courier, postal services, e-commerce hubs, Dak Niryat Kendras, and other supportive channels.

Strengthening Postal and Courier Export Infrastructure

India currently has 28 Foreign Post Offices (FPOs) notified under Section 7 of the Customs Act, 1962. CBIC has undertaken several measures to enhance cross-border trade through postal and courier channels. 

The Postal Export (Electronic Declaration and Processing) Regulations, 2022 allowed fully electronic processing of export declarations, while the Postal Import Regulations, 2025 enabled electronic import processing. IGST refund automation for postal exports was successfully rolled out in September 2024.

Dak Niryat Kendras and Hub-and-Spoke Model

To boost e-commerce exports, CBIC and the Department of Posts introduced an innovative ‘Hub and Spoke’ model in December 2022, utilising India Post’s extensive nationwide network.

As part of the initiative, more than 1,000 Dak Niryat Kendras (DNKs) nationwide have been designated to facilitate the booking, aggregation, and processing of export parcels, particularly aiding MSMEs and small exporters. 

(KNN Bureau)