Govt Operationalises Inventory-Based E-Commerce Export Framework to Boost Cross-Border Shipments

New Delhi, Aug 5 (KNN) The Government has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023, enabling export-only inventory operations for goods manufactured or produced in India through registered Exporter-on-Record entities.

The framework was notified through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both dated August 5, 2026. It follows the amendment to the FDI Policy under Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports.

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

The EOR can undertake export documentation, customs procedures, destination-country compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics. The framework also provides for timely payment to Indian sellers and transparency in overseas sales.

Export inventory can only be procured against confirmed export orders, while speculative inventory accumulation is not permitted. Such inventory must be separately identified, segregated and digitally recorded for traceability and cannot be diverted for domestic sales.

Export rebates and refunds are required to be passed on to Sellers-on-Record in proportion to the FOB value of their goods. Sellers will also have access to information on final sale prices, order status and shipment tracking.

Returned or rejected consignments must be re-exported, returned to the seller or disposed of as prescribed. The framework also requires annual compliance certification and maintenance of digital records to strengthen regulatory oversight.

(KNN Bureau)