E-Commerce Exports explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter 9 of the Foreign Trade Policy, 2023 is the Policy's framework for cross-border trade in the digital economy. For a small exporter the most useful rule is in paragraph 9.05: exports through a registered courier service or the Foreign Post Office are permitted as per Customs notifications, and no value limit is prescribed per consignment for exports through courier service. Around that rule the chapter sets out definitions, support through the Niryat Bandhu Scheme, E-Commerce Export Hubs, Dak Ghar Niryat Kendras and, in Part D, an inventory-based framework with an Exporter-on-Record and Sellers-on-Record.
This article is based on the chapter-wise text of the Foreign Trade Policy, 2023 published on the DGFT website, as consulted on 2 October 2026; the copy carries no "updated up to" date. The chapter file consulted is the one dated August 2026, whose Part D (paragraphs 9.13 to 9.19) is shown as brought in by Notification No. 27/2026-27 of 5 August 2026. The procedure is taken from Chapter 9 of the Handbook of Procedures, 2023 as published on the DGFT website (file of August 2026), consulted on 2 October 2026. Later Notifications, Public Notices and Trade Notices should be checked before you act. If you are setting up an overseas online sales line and want the legal side reviewed, our legal consultation service can help.
E-commerce exports of goods or services are sales through the internet on an e-commerce platform, paid for through international credit or debit cards or other authorised electronic payment channels as the RBI specifies (paragraphs 9.01, 9.02). Courier and postal exports are permitted as per Customs notifications and carry no value limit per consignment under paragraph 9.05; the item must still be exportable under the Policy and ITC(HS). Export hubs (9.08 to 9.11) and Dak Ghar Niryat Kendras (9.12) support small sellers. Part D (9.13 to 9.19) lets an Exporter-on-Record hold export-only inventory against confirmed export orders.
Chapter 9 at a glance
| Paragraph | Subject |
|---|---|
| 9.00 | Objective: a framework for cross-border trade of goods and services from India in the digital economy |
| 9.01, 9.02 | E-commerce exports of goods and of services |
| 9.03, 9.04 | Definitions of e-commerce platform and e-commerce export logistics provider |
| 9.05, 9.06 | Exports and imports through courier service or post |
| 9.07 | Handholding and outreach through the Niryat Bandhu Scheme |
| 9.08 to 9.11 | E-Commerce Export Hubs (ECEHs) |
| 9.12 | Dak Ghar Niryat Kendras |
| 9.13 to 9.19 | Inventory-based cross-border e-commerce framework |
The chapter rests on policy-making power under section 5 of the Foreign Trade (Development and Regulation) Act, 1992. The first part of this guide is covered in more detail in our article on paragraphs 9.00 to 9.06.
What counts as an e-commerce export
Paragraph 9.01 treats as e-commerce exports of goods the export of goods where the selling is through the internet on an e-commerce platform and the payment is made through international credit or debit cards, or other authorised electronic payment channels as specified by the RBI from time to time. Paragraph 9.02 says the same for services. Paragraph 9.03 defines an e-commerce platform as an electronic platform, including a web-portal, that enables the commercial process of buying and selling through the internet, and paragraph 9.04 defines an e-commerce export logistics provider as any service provider that provides logistics services towards exports of goods or services for e-commerce exports.
Courier and postal exports: paragraph 9.05
Paragraph 9.05 of the Policy has three parts:
- exports through a registered courier service or the Foreign Post Office are permitted as per Notifications issued under the Customs Act, 1962;
- the exportability of the items remains regulated by the Policy and the export policy in ITC(HS) as notified; and
- there shall be no value limit prescribed per consignment for exports through courier service.
The third sentence means the Policy itself prints no per-consignment ceiling for the courier route. Whether a Customs notification imposes any condition is a Customs matter outside this Policy text: see sections 83 and 84 of the Customs Act, 1962 and, for the GST side, our guide to GST refund on courier and postal exports, which is a guide to GST law and should be read for that law only. Check the item's entry in ITC(HS) before shipping.
Paragraph 9.06 is the import counterpart. Imports through a registered courier service or post are permitted as per Customs notifications, with importability regulated by the Policy and the ITC(HS) import policy (9.06(i)). Exports by courier mode of precious metal jewellery through e-commerce, and re-import of such export shipments returned by the buyer, are allowed as per the Customs notifications and procedures (9.06(ii)).
Handholding: paragraph 9.07
Paragraph 9.07 gives the Niryat Bandhu Scheme a component for promoting e-commerce and other emerging channels of exports. The DGFT is to organise outreach and workshops in partnership with Customs, the Department of Post, "Industry Partners" and "Knowledge Partners", with a possible focus on electronic content, and to take actions for capacity building and skill development.
E-Commerce Export Hubs: paragraphs 9.08 to 9.11
An E-Commerce Export Hub (ECEH) is a designated area acting as a centre for favourable business infrastructure and facilities for cross-border e-commerce (9.08). Under paragraph 9.09 an ECEH is ordinarily set up through private initiative, and may be set up in public-private partnership with State or Central Government; a proposal goes to a notified committee constituted by the DGFT, and an existing facility with the required infrastructure may also apply for designation.
Paragraph 9.10 lists what an ECEH may do: storage including cold storage, packaging, labelling, certification and testing and other common facilities, plus dedicated logistics infrastructure linking to the nearest logistics hubs. All goods, including SCOMET and restricted goods subject to compliance, may be handled except goods that are prohibited or otherwise disallowed. Capital goods brought to an ECEH may be used only for those activities, on payment of duties and taxes as applicable. Paragraph 9.11 says an ECEH may be provided financial assistance under the MAI scheme for e-commerce export promotion projects such as imaging, cataloguing and product video creation.
The Handbook adds that an application to create an ECEH goes to the DGFT, which decides it through a committee with a member from the Department of Revenue, and that the DGFT may specify products or markets not eligible, with a negative list notified separately (paragraph 9.02 of the Handbook). The ECEH developer provides an annual statement of accounts. See our article on paragraphs 9.07 to 9.12.
Dak Ghar Niryat Kendras: paragraph 9.12
Paragraph 9.12 says Dak Ghar Niryat Kendras shall be operationalised throughout the country to work in a hub-and-spoke model with Foreign Post Offices, to facilitate cross-border e-commerce and to enable artisans, weavers, craftsmen and MSMEs in the hinterland and land-locked regions to reach international markets. The paragraph prints no value limit, fee or consignment rule for these Kendras; the postal route is the one permitted by paragraph 9.05.
Part D: the inventory-based framework (9.13 to 9.19)
| Term (paragraph 9.13) | Meaning in short |
|---|---|
| Exporter-on-Record (EOR) | An entity with a valid IEC and GSTIN, registered with DGFT under the Framework, exporting goods procured from one or more Sellers-on-Record |
| Seller-on-Record (SOR) | An entity registered under GST law that supplies Indian-produced goods to the EOR against its confirmed export orders |
| Export Inventory | Goods procured by the EOR against a confirmed export order, held exclusively for export and recorded as export-designated stock |
| Export Rebates and Refunds (ERR) | Cash or cash-equivalent export incentives such as Duty Drawback, RoDTEP, RoSCTL or other notified schemes; Advance Authorisation and EPCG Authorisation are excluded |
The main rules are these.
- Who may use it (9.15). An e-commerce entity that is not a marketplace e-commerce entity, as defined under the Consolidated FDI Policy, may undertake export-only inventory operations through a registered EOR. Only goods of Indian origin are eligible, a list of ineligible goods may be notified by the DGFT, and title passes from the SOR to the EOR only against a confirmed export order from a buyer outside India. Speculative transfer of title is not permitted. Where an e-commerce entity proposes export operations under the FDI Policy paragraph cited in 9.13, as amended by Press Note 3 (2026 Series) dated 23.07.2026, they must be carried out through a separate legal entity.
- Inventory records (9.16). The EOR identifies, segregates and tracks Export Inventory in a digital repository; the manner is as prescribed in the Handbook.
- Payment (9.17). The EOR pays the SOR no later than 7 days from acceptance or deemed acceptance of the goods, not made contingent on payment from the overseas buyer. ERR are shared among SORs in proportion to the FOB value attributable to each SOR's goods as declared in the Shipping Bill; the EOR may retain an administrative charge. The Handbook caps that charge at 10% of the gross ERR and requires disbursal to the SOR within 30 days of receipt (paragraph 9.03(vi), (vii) of the Handbook).
- Returns (9.18). The EOR owns reverse logistics and bears the cost; returned or rejected consignments cannot be sold in the domestic market.
- Hubs (9.19). The EOR shall, to the extent practicable, use notified ECEH infrastructure.
Under the Handbook an EOR applies in ANF 9A, reports changes within 30 days, gives each SOR visibility of consolidated records, files a compliance certificate from an independent Chartered Accountant, Cost Accountant or other specified professional within 90 days from the end of each financial year, and keeps records for five years (paragraphs 9.03, 9.04 and 9.06). Disputes between an EOR and an SOR may be referred to the DGFT Regional Authority, which endeavours to resolve them within 30 days; a micro or small enterprise SOR keeps its right to approach the Facilitation Council under section 18 of the MSMED Act, 2006 (paragraph 9.07 of the Handbook). The details are in our articles on paragraphs 9.13 to 9.15, 9.16 and 9.17 and 9.18 and 9.19.
A practical example
Lotus Weaves, an invented handloom firm in a land-locked district, sells scarves to overseas buyers through its own website and is paid by international card. It ships each order by registered courier. Under paragraph 9.05 the Policy prints no value limit for a courier consignment, so a large single order is not barred by the Policy for that reason, but the scarf must be exportable under ITC(HS) and the Customs notification on courier exports must be met. Where the same firm wants to send small parcels by post, it can use a Dak Ghar Niryat Kendra in the hub-and-spoke arrangement of paragraph 9.12. If it supplied goods to an Exporter-on-Record instead, it would be a Seller-on-Record and would look to paragraph 9.17 for the 7-day payment rule.
Need help with cross-border e-commerce?
Setting up a compliant overseas online channel involves the Policy, Customs, payment rules and the contract between seller and exporter. Our legal consultation service can review the structure, and our dispute resolution team can assist where a seller and an Exporter-on-Record disagree.
Key takeaways
- Courier and postal exports are permitted as per Customs notifications, with no value limit per consignment under paragraph 9.05.
- Exportability still depends on the Policy and ITC(HS).
- Export hubs and Dak Ghar Niryat Kendras are support structures, not separate export licences.
- Part D allows export-only inventory through a registered Exporter-on-Record, with a 7-day payment rule to sellers.
- Check later Notifications and Public Notices before relying on any Chapter 9 provision.
Read next
- Paragraphs 9.00 to 9.06: e-commerce exports and the courier or postal route
- Paragraphs 9.07 to 9.12: e-commerce export hubs and Dak Niryat Kendras
- Paragraphs 9.13 to 9.15: the inventory-based cross-border e-commerce framework
- Section 5 of the Foreign Trade (Development and Regulation) Act, 1992
Disclaimer: Based on the chapter-wise text of the Foreign Trade Policy, 2023 and the Handbook of Procedures, 2023 published on the DGFT website, and on the later Notifications named in this article, as consulted on 2 October 2026. The copies carry no "updated up to" date. Notifications, Public Notices, Trade Notices, the ITC(HS) schedules, Appendices and forms change often; the current text on the DGFT website should be checked before acting. This article is general information, not legal advice; check the official text before acting.
