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Informist, Wednesday, Aug. 5, 2026

 

MUMBAI – The government Wednesday notified a framework for inventory-based cross-border e-commerce exports. Under the framework, an e-commerce company with foreign investment that seeks to undertake inventory-based operations for exports can procure goods only against confirmed export orders. Speculative transfer of title or inventory build-up without a confirmed export order is not permitted, as per the notification. 

 

In order to boost exports, on Jul. 23, the government relaxed the foreign direct investment policy on the inventory-based model of e-commerce in the case of exports of domestically produced goods. Under the newly notified norms for implementation of this decision, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record.

 

"The Exporter-on-Record shall be responsible for distinctly identifying, segregating and maintaining Export Inventory, and for maintaining a digital repository enabling identification, tracking and traceability of all Export Inventory, including records relating to procurement from Seller-on-Record, inventory status, and linkage with export documentation," according to the notification.

 

By leveraging a registered Exporter-on-Record, Indian sellers can access overseas markets while delegating export documentation, customs formalities, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics to the Exporter-on-Record.

 

The framework also ensures timely payment to sellers, transparency in overseas sales, and clear accountability for export compliance. This reduces compliance costs and enables Indian enterprises to focus on production and innovation while expanding their global market access.

 

Under the norms, the export inventory of e-commerce companies must be distinctly identified, segregated, and maintained through a digital repository to ensure complete traceability. Further, export inventory cannot be diverted for sale in the domestic market.

 

Further, returned or rejected consignments must be re-exported, returned to the seller, or disposed of in accordance with the prescribed procedures, it said. To further strengthen transparency and enforcement, the framework mandates annual compliance certification and maintenance of digital records.

 

"The framework is expected to facilitate greater participation of Indian manufacturers, traders and MSMEs (micro, small, medium enterprises) 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," as per the notification.  End

 

Reported by Pratiksha

Edited by Himanshi Gupta

 

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