Government notifies framework for inventory-based cross-border e-commerce exports
The new framework enables export-only inventory operations through registered Exporters-on-Record, helping Indian MSMEs and manufacturers access global markets with stronger compliance support.
The initiative aims to help Indian manufacturers, artisans and micro, small and medium enterprises (MSMEs) tap the rapidly growing global e-commerce market while ensuring robust regulatory oversight and protecting the interests of domestic sellers.
NEW DELHI: The Government of India has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP) 2023, creating a comprehensive policy and procedural framework to facilitate export-only inventory operations for goods manufactured or produced in India.
The framework has been 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 Foreign Direct Investment (FDI) Policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports.
The initiative aims to help Indian manufacturers, artisans and micro, small and medium enterprises (MSMEs) tap the rapidly growing global e-commerce market while ensuring robust regulatory oversight and protecting the interests of domestic sellers, the Ministry of Commerce & Industry said in a statement on Wednesday.
Under the framework, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record (EOR). The EOR will procure goods from Indian Sellers-on-Record (SORs) only against confirmed overseas orders, export the products in its own name and assume responsibility for customs procedures, export documentation and compliance with destination-country regulations.
The framework allows Indian sellers to focus on manufacturing and innovation while delegating export documentation, customs clearance, product testing and certification, packaging, labelling, logistics, fulfilment and reverse logistics to the registered Exporter-on-Record.
To safeguard Indian businesses, the framework mandates timely payments to 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 Free on Board (FOB) value of their goods. Sellers will also have visibility into the final sale price, order status and shipment tracking of their products.
The policy incorporates several safeguards to prevent misuse. Export inventory can be procured only against confirmed export orders, while speculative inventory build-up is prohibited. Inventory meant for exports must be separately identified, digitally recorded and maintained in a traceable repository, and cannot be diverted for sale in the domestic market.
The framework also prescribes procedures for handling returned or rejected consignments, which must either be re-exported, returned to the seller or disposed of in accordance with prescribed norms. In addition, annual compliance certification and maintenance of digital records have been made mandatory to strengthen transparency and regulatory enforcement.
The government expects the framework to increase the participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains by providing access to organised fulfilment networks while ensuring transparency, timely payments, effective pass-through of export benefits and strong regulatory oversight.
