New Export-Only E-Commerce Framework Operationalised
The Government of India has operationalised a new Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023, creating a dedicated system for Indian goods to be sold through inventory-based e-commerce operations in overseas markets.
The framework was operationalised through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both issued on August 5, 2026.
The move follows an amendment to the FDI Policy that permits inventory-based e-commerce operations exclusively for exports.
Registered Exporter-On-Record To Handle Exports
Under the new framework, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record (EOR).
The EOR will procure products from Indian Sellers-on-Record (SORs) against confirmed overseas orders and export the goods in its own name. It will also take responsibility for export operations and compliance with regulations in the destination country.
This allows Indian sellers to participate in international e-commerce without having to independently manage every stage of the export process.
Export Documentation And Logistics Become Easier
The EOR model is designed to handle several complex parts of international trade on behalf of Indian sellers.
These include export documentation, customs procedures, destination-country regulatory compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics.
The framework also provides for timely payments to Indian sellers, transparency in overseas sales and clear accountability for export compliance.
Strict Rules To Prevent Domestic Diversion
The government has introduced safeguards to ensure the system is used only for genuine export demand.
Export inventory can be procured only against confirmed export orders, meaning speculative stockpiling for overseas sales is not permitted. The inventory must be separately identified and segregated, with details maintained through a digital repository to ensure traceability.
Importantly, goods designated as export inventory cannot be diverted for sale in India’s domestic market.
MSMEs And Indian Manufacturers Get Global Access
The framework is expected to particularly benefit Indian manufacturers, artisans and MSMEs by giving them access to organised international e-commerce fulfilment networks.
Sellers will also receive visibility into the final sale price, order status and shipment tracking of their products. Export rebates and refunds must be passed on to sellers proportionately based on the FOB value attributable to their goods.
Returned or rejected shipments must either be re-exported, returned to the seller, or disposed of according to prescribed procedures.
Digital Records And Annual Compliance Required
To strengthen transparency, the framework requires digital record-keeping and annual compliance certification.
The government expects the new system to reduce export-related compliance costs for Indian businesses while maintaining regulatory oversight. By allowing sellers to focus on production and innovation while the EOR manages export formalities, the framework aims to make it easier for Indian businesses to participate in global e-commerce supply chains.
Summary
The government has operationalised an inventory-based cross-border e-commerce export framework under the Foreign Trade Policy 2023. Eligible e-commerce entities can conduct export-only inventory operations through registered Exporter-on-Record entities, which handle customs, documentation, compliance, logistics and fulfilment. The framework prohibits speculative inventory and domestic diversion while providing Indian manufacturers, artisans and MSMEs greater access to global e-commerce markets.