Government Notifies Inventory-based Cross-border E-Commerce Export Framework
The Government of India has operationalized the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP) 2023 through Notification No. 27/2026-27 dated August 5, 2026, and corresponding Public Notice No. 25/2026-27 dated August 5, 2026. This framework provides a comprehensive policy and procedural architecture for facilitating inventory-based cross-border e-commerce exports of goods manufactured or produced in India.
Framework Operationalization and Background
The framework follows the amendment to the FDI Policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports. The rapid growth of cross-border e-commerce presents significant opportunities for Indian manufacturers, artisans, and MSMEs to access global markets through organized fulfilment networks.
Operational Structure and Responsibilities
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 assumes responsibility for export operations as well as compliance with destination-country requirements. Indian sellers can thus delegate export documentation, customs formalities, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics, and reverse logistics to the EOR.
Safeguards and Compliance Requirements
The framework incorporates multiple safeguards to ensure benefits accrue to Indian manufacturers and MSMEs while maintaining regulatory oversight. Export inventory may be procured only against confirmed export orders, with speculative inventory build-up prohibited. Export inventory must be distinctly identified, segregated, and maintained through a digital repository for complete traceability, and cannot be diverted for domestic market sales.
Payment and Benefit Provisions
The framework mandates timely payments to Indian sellers within prescribed timelines, irrespective of receipt of payment 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 provided visibility regarding final sale price, order status, and shipment tracking of their products.
Returns and Compliance Enforcement
Returned or rejected consignments must be re-exported, returned to the seller, or disposed of according to prescribed procedures. The framework mandates annual compliance certification and maintenance of digital records to strengthen transparency and enforcement.
Expected Impact
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.