New Delhi, India: The Ministry of Commerce and Industry has notified the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP) 2023, establishing a regulatory framework for export-only inventory operations through registered exporters.
The framework has been brought into effect through Notification No. 27/2026-27 and the corresponding Public Notice No. 25/2026-27, both dated August 5, 2026. It follows amendments to the Foreign Direct Investment (FDI) Policy that permit inventory-based e-commerce operations exclusively for exports.
Under the new system, eligible e-commerce entities can undertake export-only inventory operations through a registered Exporter-on-Record (EOR). The EOR will procure goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, export the products in its own name and remain responsible for export documentation, customs procedures and compliance with destination-country regulations.
According to the ministry, the framework is designed to reduce compliance burdens on Indian sellers by allowing the EOR to manage packaging, labelling, logistics, reverse logistics, certification and other export formalities. The arrangement is also expected to provide timely payments to sellers and enable manufacturers to focus on production and innovation while accessing international markets.
To strengthen regulatory oversight, the framework includes several safeguards. Inventory can be procured only against confirmed export orders, and speculative stockpiling for export purposes is not permitted. Export inventory must be separately identified, digitally recorded and maintained to ensure complete traceability. The inventory cannot be diverted for sale in the domestic market.
The framework also mandates that export incentives and refunds be proportionately passed on to Sellers-on-Record based on the free-on-board (FOB) value of their goods. Sellers will receive visibility into the final sale price, order status and shipment tracking of their products.
Additionally, returned or rejected consignments must either be re-exported, returned to the seller or disposed of in accordance with prescribed procedures. Annual compliance certification and maintenance of digital records have also been made mandatory.
The government said the framework is expected to improve the participation of Indian manufacturers, traders, artisans and MSMEs in global e-commerce supply chains by providing organised fulfilment networks while ensuring transparency, timely payments and effective regulatory compliance.
Source: This article is based on an official press release issued by the Press Information Bureau, Ministry of Commerce & Industry, Government of india
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