India’s New Inventory-Based Cross-Border E-Commerce Export Framework

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Dated: 07.08.2026

India’s New Inventory-Based Cross-Border E-Commerce Export Framework

India has introduced a transformative Inventory-based Cross-border E-Commerce Export Framework under its Foreign Trade Policy (FTP), aiming to streamline and boost e-commerce exports. This article provides a detailed overview of the framework, its objectives, key definitions, operational guidelines, and the opportunities it presents for Indian exporters and sellers.

What is the Inventory-Based Cross-Border E-Commerce Export Framework?

The framework enables e-commerce exports through an inventory model, where a registered entity (Exporter-on-Record) holds inventory exclusively for export, manages export processes, and helps Indian sellers access global markets. This marks a significant shift from traditional export models, offering greater flexibility and efficiency for e-commerce-driven trade.

Key Definitions

Exporter-on-Record (EOR):
- An entity with a valid Importer Exporter Code (IEC) and GSTIN, registered with the Directorate General of Foreign Trade (DGFT) under this framework.
- Responsible for procuring goods from Indian sellers and exporting them to overseas buyers.
- Must disclose shareholding and ownership details if linked to an e-commerce platform.
Seller-on-Record (SOR):
- An Indian-registered entity under GST law, supplying goods produced in India to the EOR for confirmed export orders.
Export Inventory:
- Goods procured by the EOR from SORs against confirmed export orders, held exclusively for export and traceable in the EOR’s records.
Domestic Inventory:
- Goods held by the SOR for supply within India’s Domestic Tariff Area (DTA).
Export Rebates and Refunds (ERR):
- Monetary or transferable export incentives (e.g., Duty Drawback, RoDTEP, RoSCTL) received by the EOR upon export. Non-transferable duty remission instruments are excluded.

Objectives of the Framework

Enable e-commerce exports through an inventory model.
Empower Indian sellers to access global markets via EORs.
Ensure traceability and compliance in export operations.

Eligibility and Conditions

Only e-commerce entities (not marketplace models) can operate as EORs under this framework.
Only goods of Indian origin are eligible; SORs must declare and ensure correct origin.
DGFT may notify a list of ineligible goods.
Title to goods transfers from SOR to EOR only upon confirmed export orders—speculative inventory build-up is not allowed.

Export Inventory Management

EORs must distinctly identify, segregate, and maintain export inventory.
A digital repository is required for tracking procurement, inventory status, and export documentation.
Standards for inventory management will be detailed in the Handbook of Procedures.

Payment and Export Rebates

EORs must pay SORs within 7 days of accepting goods, regardless of payment receipt from overseas buyers or returns.
EORs claim export rebates and refunds as per FTP and relevant notifications.
Rebates are apportioned among SORs based on the Free-on-Board (FOB) value of their goods in each export consignment.
EORs may deduct administrative charges before disbursing the balance to SORs.

Reverse Logistics and Returns

EORs are responsible for managing and bearing the costs of reverse logistics for returned or rejected consignments.
Returned goods cannot be sold in the domestic market under any circumstances.

Utilisation of E-Commerce Export Hubs (ECEHs)

EORs should use notified ECEH infrastructure where practicable, subject to operational readiness and capacity.

Opportunities and Impact

This framework is poised to:

Simplify compliance and operational processes for e-commerce exporters.
Enhance transparency and traceability in cross-border trade.
Provide Indian sellers with streamlined access to international markets.
Foster growth in India’s e-commerce export sector.

The Inventory-based Cross-border E-Commerce Export Framework represents a significant step forward in India’s trade policy, aligning with global best practices and supporting the country’s vision of becoming a major player in international e-commerce.

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Source: DGFT

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