Government Notifies Rules for Cross-Border E-Commerce Exports

The Government of India operationalised rules for inventory-based cross-border e-commerce exports on 5 August 2026 through the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry. The framework was notified under Notification No. 27/2026-27 and Public Notice No. 25/2026-27 and is part of the Foreign Trade Policy (FTP) 2023.

Inventory-Based E-Commerce Export Model

The framework permits e-commerce companies with foreign investment to undertake export-only inventory operations through a registered Exporter-on-Record (EOR). An EOR can procure goods from Sellers-on-Record (SORs) only against confirmed export orders, and the rules prohibit speculative inventory build-up. The model applies to cross-border e-commerce exports, which are exports of goods sold through digital platforms and shipped directly to overseas buyers. The arrangement is limited to export activity and does not permit domestic retail inventory operations under this framework.

Registration, Traceability and Compliance

EORs must register with the DGFT using Aayaat Niryaat Form (ANF) 9A. They are required to identify, segregate and maintain export inventory through a digital repository for traceability. The EOR is responsible for export documentation, customs formalities, destination-country regulatory compliance, product testing, certification, packaging, labelling, fulfilment, logistics and reverse logistics. These functions cover the movement of goods from the seller to the foreign buyer and the return flow of rejected or undelivered goods.

Payments and Commercial Conditions

The rules require EORs to disburse seller-attributable export benefits within 30 days of receipt. Payments to SORs must be made within seven days of goods acceptance. The administrative charges retained by EORs are capped at 10 per cent of the gross export rebates and refunds. The framework follows an amendment to the Foreign Direct Investment (FDI) Policy through Press Note No. 3 (2026 Series) dated 23 July 2026, which permitted inventory-based e-commerce operations exclusively for exports.

Important Facts for Exams

• The Directorate General of Foreign Trade functions under the Ministry of Commerce and Industry.
• The Foreign Trade Policy 2023 provides the policy framework for India’s external trade measures.
• Aayaat Niryaat Form 9A is used for registration of the Exporter-on-Record under this framework.
• MSMEs, artisans and Indian manufacturers are among the intended participants in cross-border e-commerce export supply chains.

Policy Context

Inventory-based e-commerce exports are distinct from marketplace-only models because the EOR holds export inventory for confirmed orders. The framework is designed for export-only operations and applies to goods moving from India to foreign markets.