Overview: The Government of India has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP) 2023. Promulgated via DGFT Notification No. 27/2026-27 and Public Notice No. 25/2026-27, this policy allows foreign-funded entities to run export-only inventory operations following recent FDI policy relaxations under Press Note 3 (2026 Series). Eligible platforms can now conduct cross-border e-commerce via registered Exporters-on-Record (EOR).
Rapid growth in cross-border digital retail offers Indian artisans, micro, small, and medium enterprises (MSMEs), and domestic manufacturers a direct route to global consumers. By aligning Foreign Direct Investment rules with FTP directives, the government has created a legal bridge that allows local producers to delegate operational burdens to specialised export entities.
Under these regulations, Indian Sellers-on-Record (SORs) supply products to registered Exporters-on-Record against confirmed overseas orders. The EOR handles customs clearances, overseas statutory compliance, product certification, logistics, and reverse logistics.
In return, local sellers receive guaranteed payment schedules, complete order visibility, and proportional pass-through of attributable export incentives.
This structured framework reduces compliance friction for local manufacturers while maintaining digital traceability, commercial transparency, and strict statutory oversight.
Key Points
- Operational Delegation: EORs manage export filings, customs clearance, product testing, destination packaging, and order fulfilment.
- Compliance Controls: Inventory requires confirmed export orders; speculative stocking and domestic market diversion are prohibited.
- Seller Safeguards: Indian suppliers benefit from real-time tracking, timely payment guarantees, and FOB-based export rebate pass-throughs.
Frequently Asked Questions
Can export inventory under this framework be sold domestically?
Who bears responsibility for overseas regulatory compliance?
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SETINDIABIZ assists Indian manufacturers, sellers, and foreign entities navigating cross-border trade regulations. Our expert team provides end-to-end guidance for Import Export Code (IEC) registration, DGFT compliance, FDI advisory, and cross-border tax structuring.
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Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.
