India operationalises inventory based cross border e-commerce exports

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 provides a comprehensive policy and procedural structure to facilitate inventory-based cross-border e-commerce exports of goods manufactured or produced in India.

The move follows an amendment to India's FDI Policy which permits inventory-based e-commerce operations exclusively for exports. The Government has now operationalised the corresponding regulatory framework under the Foreign Trade Policy, aimed at enabling such exports while safeguarding the interests of Indian sellers. Officials said the rapid growth of cross-border e-commerce presents a significant opportunity for Indian manufacturers, artisans, and MSMEs to access global markets.

Under the framework, eligible e-commerce entities may 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, undertakes exports in its own name, and takes responsibility for export operations as well as compliance with destination-country requirements. By working through a registered EOR, Indian sellers can access overseas markets while delegating export documentation, customs formalities, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics, and reverse logistics to the EOR. The framework also ensures timely payment to sellers, transparency in overseas sales, and clear accountability for export compliance, reducing compliance costs for Indian enterprises and allowing them to focus on production and innovation while expanding their global market reach.

The framework incorporates several safeguards intended to ensure that the benefits of e-commerce exports accrue to Indian manufacturers and MSMEs, while maintaining regulatory oversight. Export inventory may be procured only against confirmed export orders, and speculative inventory build-up for export purposes is not permitted. Export inventory must be distinctly identified, segregated, and maintained through a digital repository to ensure complete traceability, and it cannot be diverted for sale in the domestic market.

The framework also mandates timely payments to Indian sellers within a prescribed timeline, irrespective of when payment is received from overseas buyers. Export rebates and refunds must be apportioned and passed through to Sellers-on-Record in proportion to the FOB value attributable to their goods. Sellers are also provided visibility into the final sale price, order status, and shipment tracking of their products. Returned or rejected consignments must be re-exported, returned to the seller, or disposed of in accordance with prescribed procedures. To further strengthen transparency and enforcement, the framework mandates annual compliance certification and maintenance of digital records.

The Government said the framework is expected to facilitate greater 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 robust regulatory oversight.