Government Notifies Inventory-based Cross-border E-Commerce Export Framework

• 06 Aug 2026
• 13 Views

The Centre has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP) via Notification No. 27/2026-27 dated 5.08.2026 and corresponding Public Notice No. 25/2026-27 dated 5.08.2026. The framework provides a detailed policy and procedural framework so as to facilitate inventory based cross border e-commerce exports of goods manufactured/produced in India.

Cross-border e-commerce is growing rapidly. The Indian manufacturers, artisans and MSMEs have a great opportunity to reach global markets. Following the amendment to the FDI Policy via Press Note No. 3 (2026 Series), the Government has now operationalized the regulatory framework under Foreign Trade Policy to allow inventory-based e-commerce operations for exports. The framework enables such exports and protects the Indian sellers’ interests. 

Export Operations via Exporter-on-Record (EOR)

Under the framework, the eligible e-commerce entities can perform only export inventory operations via a registered Exporter-on-Record (EOR). The EOR buys goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, undertakes exports in its own name and is responsible for export operations and compliance with the requirements of the destination country.

Indian sellers can gain access to foreign markets via registered Exporter-on-Record. The EOR will manage export documentation, customs formalities, regulatory compliances in the destination country, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics. 

Timely Payment and Transparency under New Framework

One of the key features of the new framework is that it ensures timely payment to sellers. It promotes transparency in overseas sales and clear accountability for export compliances. As a result, the framework helps reduce compliance costs and allows the Indian enterprises to focus better on production and innovation while growing their global market share.

The framework includes several safeguards so as to ensure that Indian manufacturers and MSMEs receive the benefits of e-commerce exports while maintaining proper regulatory oversight. Export inventory can only be purchased after receiving a confirmed export order. The stock cannot be stored in advance for future exports. To ensure that there is complete traceability, the inventory must be clearly identified, kept separately and recorded in a digital system. Furthermore, export inventory cannot be diverted for sale in domestic market. 

What’s more, the framework provides for timely payments to Indian sellers within the prescribed timeline, even if the overseas buyer has not yet made the payment. Any export rebates and refunds must be shared with the Sellers-on-Record based on the FOB value of their goods. In addition, sellers can check the final selling price of their products, know the order status and track shipment progress. 

If the consignments are returned or rejected, they must be returned to the seller or disposed of in alignment with the prescribed procedures. To make transparency and enforcement stronger, the framework makes annual compliance certification and maintenance of digital records a mandatory requirement.

Expectations from New Framework

It is anticipated that the new framework will allow for greater participation of Indian manufacturers, trades and micro, small and medium enterprises in the global e-commerce supply chains. 

It will provide them with access to organised fulfilment networks, ensure transparent processes, support timely payments, enable the proper transfer of export benefits and strengthen regulatory oversight. 

Source: Press Information Bureau (PIB)