India rolls out series of reform to boost e-commerce exports

Rs 10 lakh value cap on courier exports consignment removed.

India on Tuesday announced operationalisation of a set of comprehensive reforms effective from April 1 to strengthen and streamline e-Commerce exports and courier-based imports.

The reform measures include removal of the Rs 10 lakh value cap per consignment on courier exports, a streamlined framework for handling returned and rejected parcels and a legally backed Return to Origin (RTO) mechanism for uncleared shipments.

According to the Finance Ministry, these reform measures would enhance ease of doing business, reduce logistics inefficiencies and strengthen India’s global export competitiveness, particularly for MSMEs, artisans and start-ups.

“This measure is expected to significantly boost exports, especially for e-commerce exporters, by allowing greater flexibility in shipment value and enabling seamless exports through the courier mode, eliminating the need to divert such shipments to conventional air or sea cargo solely due to value restrictions,” the ministry said in a statement.

The announcement in this regard was made by Finance Minister Nirmala Sitharaman in the union budget presented on February 1.

The Central Board of Indirect Taxes and Customs (CBIC) has carried out amendments and changes in the relevant regulations to ensure smooth operationalisation of the reform measures impacting e-commerce exports.

The regulations, which have been amended, include the Courier Imports and Exports (Electronic Declaration and Processing) Regulations 2010 and Courier Imports and Exports (Clearance) Regulations, 1998. The CBIC has also issued circulars explaining the amendments and detailing the operational modalities.

In order to address congestion and delays in disposal of uncleared or unclaimed imported goods at international courier terminals, CBIC has introduced a Return to Origin (RTO) facility. Under this facility, goods that remain uncleared or unclaimed for more than 15 days and are not prohibited, restricted or under enforcement hold may be returned to the origin following a simplified procedure. This is expected to ease congestion at courier terminals and improve logistics efficiency.

CBIC has also simplified the procedure for re-import of returned or rejected goods, including those relating to e-commerce exports. A risk-based approach has been adopted in place of consignment-wise verification, and necessary amendments have been carried out in the relevant notification.

In addition, a dedicated return module has been developed in the express cargo clearance system to facilitate smooth processing of such returns.

“These reforms are supported by system-based enhancements and process simplifications aimed at improving the overall efficiency of courier-based trade,” the finance ministry said.

The measures are expected to reduce dwell time, lower transaction costs and provide significant relief to exporters, logistics operators and other stakeholders involved in international courier trade, especially e-commerce, it added.