DGFT Notifies Norms for Inventory-Based E-Commerce Exports to Boost Outbound Shipments

Key facts

• The Directorate General of Foreign Trade (DGFT) notified norms for inventory-based cross-border e-commerce exports.
• On July 23, the government permitted FDI in an inventory-based e-commerce model exclusively for exports.
• E-commerce companies with foreign investment must register as an 'Exporter-on-Record' (EOR) with DGFT to undertake export-only inventory operations.
• The EOR must hold a valid IEC and GSTIN and be a separate legal entity incorporated for this purpose.
• EORs can procure made-in-India goods from Indian Sellers-on-Record (SOR) only against confirmed overseas export orders.
• Speculative stockpiling of inventory for export purposes is not permitted.
• Export inventory must be distinctly identified, segregated, and maintained through a digital repository for complete traceability.
• Export inventory cannot be diverted for sale in the domestic market.
• Payment to Indian sellers must be made within the prescribed timeline and cannot be contingent on receipt of payment from overseas buyers.
• Returned or rejected consignments must be re-exported, returned to the seller, or disposed of under prescribed procedures.
• Disputes between the EOR and the seller will be referred to the DGFT's regional authority.
• The framework aims to facilitate participation of Indian manufacturers, traders, and MSMEs in global e-commerce supply chains.