Centre operationalises inventory-based framework for cross-border e-commerce exports

The Story in Brief

The government has operationalised an inventory-based cross-border e‑commerce framework that applies only to exports. Firms must conduct business through a registered exporter-on-record (EOR), which procures goods from Indian sellers-on-record (SORs) only against confirmed overseas orders, undertakes exports in its own name and assumes responsibility for export operations and compliance with destination-country requirements. The move follows the Foreign Trade Policy of 31 March 2023 and an amendment to the FDI policy via Press Note No. 3 (2026 Series) permitting inventory-based e‑commerce exclusively for exports, and the framework was operationalised on 5 August 2026. The policy provides a procedural architecture for goods manufactured or produced in India, requires export inventory to be identified, segregated and maintained in a digital repository, forbids diversion to the domestic market, and mandates timely payments to sellers, visibility on final sale price and shipment tracking. The EOR is to handle documentation, customs, testing, packaging, fulfilment, logistics and reverse logistics; rebates and refunds are to be apportioned to SORs and returned consignments must be dealt with as prescribed, with annual compliance certification and digital record maintenance required.

The Indian Opinion

The ministry’s statement outlines benefits such as market access for manufacturers and MSMEs, reduced compliance costs for producers and safeguards to ensure traceability and timely payments. At the same time, the framework shifts much of the operational burden and accountability to EORs and depends on digital tracing, enforcement and correct apportioning of rebates and refunds. Claims of transparency and timely payment are positive but untested; practical success will depend on how effectively authorities monitor segregated export inventory, audit annual compliance certificates and resolve disputes between SORs and EORs. Ordinary readers should note that the policy balances promotion and control in principle, but implementation details and enforcement capacity will determine actual outcomes.

Original article: Govt operationalises inventory-based cross-border e-commerce export framework (www.hindustantimes.com)

This story was summarised and commented on by AI from the source linked above.