Commerce Ministry Notifies Norms for Inventory-Based E-Commerce Exports
The new framework requires foreign-backed e-commerce exporters to register as Exporter-on-Record entities and buy made-in-India goods only against confirmed overseas orders.
- The Commerce Ministry issued new norms allowing foreign direct investment in inventory-based e-commerce models strictly for exports, requiring companies to register as an Exporter-on-Record to maintain export-only stock.
- E-Commerce entities must operate through a separate legal entity registered as an EOR, with inventory procured solely against confirmed overseas orders; speculative stockpiling for outbound shipments is explicitly prohibited.
- By leveraging a registered EOR, "Indian sellers can access overseas markets," the Commerce Ministry said, while the model supports MSMEs by improving access to organized fulfillment networks and delegating logistics.
- Regulations ensure timely payments to sellers, which cannot be contingent on overseas receipts, while returned or rejected consignments must be re-exported or disposed of according to prescribed procedures.
- India aims to capture a larger share of the USD 800 billion global e-commerce market, estimated to reach USD 2 trillion by 2030, as Indian exports currently remain under USD 5 billion compared to China's USD 350 billion.
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Government Operationalises Inventory-based Cross-border E-commerce Export Framework Under Foreign Trade Policy 2023
Get latest articles and stories on Business at LatestLY. The government has operationalised the inventory-based cross-border e-commerce export framework under the Foreign Trade Policy (FTP) 2023, enabling eligible e-commerce entities to undertake export-only inventory operations through registered Exporters-on-Record (EORs), according to a release by the Ministry of Commerce and Industry. Business News | Government Operationalises Inventory-base…
Government operationalises inventory-based cross-border e-commerce export framework under Foreign Trade Policy 2023 - The Tribune
The government has operationalised the inventory-based cross-border e-commerce export framework under the Foreign Trade Policy (FTP) 2023, enabling eligible e-commerce entities to undertake export-only inventory operations through registered Exporters-on-Record (EORs), according to a release by the Ministry of Commerce and Industry.
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