|
Inventory-Based Cross-border E-Commerce Export Framework Operationalised
The Government operationalises the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy 2023. The framework permits online retail and e-commerce companies to hold goods in India exclusively to fulfil overseas export orders.
Inventory-based Cross-border E-Commerce Export Framework:
| Dimension | Key Details |
|---|---|
| Legal/Policy Basis | Governed by the Foreign Trade Policy 2023. |
| Operating Model | Mandates operation via an Exporter-on-Record (EOR), procuring goods from Sellers-on-Record (SORs) only against confirmed overseas orders. |
| Role of Exporter-on-Record (EOR) | Provides for EOR to procure goods from Indian SORs against confirmed overseas orders, undertake exports in its own name, and assume responsibility for export operations and compliance with destination-country requirements. |
| EOR Operational Responsibilities | Comprises documentation, customs, product testing, packaging, labelling, logistics, and reverse logistics. |
| Payment Rule | Mandates timely payments to sellers within prescribed timelines, regardless of overseas buyer delays. |
| Seller Transparency Provisions | Provides for sellers to get visibility of sale price, order status, and shipment tracking. |
| Export Benefits | Mandates rebates and refunds to be passed proportionately to Sellers-on-Record (SORs). |
| Safeguards on Inventory and Diversion | Mandates inventory only against confirmed orders, prohibits speculative build-up, and provides for traceability through a digital repository with no diversion to the domestic market. |
| Bank Compliance Requirement | Mandates banks to file annual compliance certification. |
| Digital Records Requirement | Mandates maintenance of digital records for transparency. |
| Rejected Consignments | Provides for rejected consignments to be re-exported, returned to the seller, or disposed as per rules. |
| Stated Beneficiary Groups | Comprises Indian manufacturers, traders, MSMEs, artisans, and manufacturers. |