CROSS BORDER TRADE
There is a focus measure aimed at expediting international trade in the digital economy, with a particular emphasis on e-Commerce. Its goal is to give exporting goods and services through e-Commerce platforms an organized framework. Products offered on these platforms via the internet can only be purchased with foreign credit or debit cards, or with other RBI-approved electronic payment methods. Services that are sold via e-commerce platforms also adhere to the same payment policies. Additionally, exports and imports through registered courier services or foreign posts are allowed under specified conditions and value limits, as per notifications issued under the Customs Act, 1962, and governed by FTP/Export Policy guidelines in ITC(HS).
E-commerce exports represent a promising avenue for growth, requiring tailored policy interventions distinct from traditional offline trade. Estimates suggest significant potential, with projections of $300 billion by 2030. FTP 2023 delineates the intent and roadmap for establishing e-commerce hubs, encompassing critical elements such as payment reconciliation, bookkeeping, returns policy, and export entitlements.
As an initial step, the consignment-wise cap on E-commerce exports through courier services was raised from ₹5 lakh to ₹10 lakh under FTP 2023. This adjustment is subject to further revision or potential removal based on feedback from exporters. Integration of Courier and Postal exports with ICEGATE is underway, facilitating exporters’ ability to claim benefits under FTP.
In line with the policy, the DGFT has entered into Memorandums of Understanding (MoUs) with Amazon India and Shiprocket. These partnerships with e-commerce platforms and service providers have spurred a series of outreach events by DGFT Regional Authorities. The aim is to onboard new exporters, support first-time exporters, and provide guidance to MSME producers in becoming exporters. This initiative falls under the District as Export Hub program, promoting cross-border e-commerce sales effectively.
The Niryat Bandhu Scheme (NBS) has a dedicated component to boost e-commerce and developing export channels. Under this effort, the DGFT works together with Customs Authorities, the Department of Post, industrial partners, and knowledge partners to organize outreach activities and workshops. These activities aim to educate exporters on the complexities of e-Commerce exports, including regulatory frameworks, procedural rules, and best practices. Furthermore, focus is being placed on creating electronic content to serve as comprehensive resources for exporters, such as educational materials and digital tools. Furthermore, the NBS component emphasizes capacity building and skill development through targeted training programs and activities.
Under Public-Private Partnership (PPP) models, ECEHs are largely intended to be built through private enterprises or in collaboration with state or federal governments. The DGFT has formed a designated committee for the approval of applications for the establishment of ECEHs.
These hubs are intended to bring together exporters of electronic goods so they can take use of common resources and economies of scale. ECEHs will provide standard services required for exports, including packaging, labeling, certification, testing, and storage, including cold storage facilities. Additionally, they will have specialized infrastructure for logistics to effectively interact with neighboring logistical hubs.
Except for items that are specifically forbidden or barred, ECEHs are permitted to handle any goods, including those classified under SCOMET (Special Chemicals, Organisms, Materials, Equipment, and Technologies) and Restricted categories, subject to conformity with regulatory criteria. Imported capital goods into an ECEH must only be utilized for approved purposes, and any related taxes and tariffs must be paid in compliance with current legislation.
Moreover, ECEHs will be able to receive funding through the MAI program to promote initiatives that support exports of e-commerce. These projects cover marketing, capacity building, and technology services including product video production, imagery, and cataloging for e-commerce goods.
Dak Ghar Niryat Kendras are set to be established nationwide, operating in a hub-and-spoke model alongside Foreign Post Offices (FPOs). Their primary objective is to facilitate cross-border e-commerce, providing a platform for artisans, weavers, craftsmen, and MSMEs located in remote and landlocked areas to access international markets effectively. These centers will play a crucial role in enabling small businesses and entrepreneurs from hinterlands to participate in global trade through efficient logistical support and international postal networks.
The government feels that Dak Ghar Niryat Kendras are poised to provide significant support to small traders in enhancing the country’s exports. He highlighted that the operational framework of post offices, characterized by its cost-effectiveness and simplified processes, is particularly advantageous for small and medium enterprises (SMEs).
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