Export Inventory Procurement

• Export inventory must be procured only against confirmed export orders.
• Speculative inventory build-up for export purposes is not permitted.

Identification and Segregation

• Export inventory must be distinctly identified, segregated, and maintained through a digital repository ensuring complete traceability.
• Export inventory cannot be diverted for sale in the domestic market.

Payment and Compliance

• Payment to Indian sellers must be made within the prescribed timeline and cannot be contingent upon receipt of payment from overseas buyers.
• Returned or rejected consignments must be re-exported, returned to the seller, or disposed of according to prescribed procedures.

Transparency and Accountability

• The framework ensures transparency in overseas sales and clear accountability for export compliance.

Benefits for Indian Manufacturers

The new framework is expected to facilitate greater participation of Indian manufacturers, traders, and MSMEs in global ecommerce supply chains. It provides access to organized fulfillment networks while ensuring timely payment and effective pass-through of export benefits.

Dispute Resolution

Any dispute or grievance between the EOR and the seller will be referred to the DGFT's regional authority for resolution.

Future Outlook

The government aims to boost exports through the ecommerce medium, with current ecommerce exports being less than $5 billion compared to China's $350 billion. The global ecommerce trade is about $800 billion and is estimated to reach $2 trillion by 2030.

FAQ

What is an Exporter-on-Record (EOR)?

An EOR is an entity holding a valid IEC and GSTIN, registered with DGFT under the inventory-based cross-border ecommerce facilitation framework.

How does the new FDI policy benefit Indian manufacturers?

The policy ensures transparency, timely payments, and regulatory oversight to benefit Indian manufacturers and MSMEs.

What happens to returned or rejected consignments?

Returned or rejected consignments must be re-exported, returned to the seller, or disposed of according to prescribed procedures.

Conclusion

The new FDI norms for inventory-based e-commerce in India aim to boost the country's participation in global ecommerce markets by providing structured support to Indian manufacturers and MSMEs. With proper regulatory oversight, these guidelines are expected to enhance transparency and streamline export processes.

Call-to-Action

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