Govt notifies norms to facilitate ecommerce firms undertaking inventory-based online exports
Foreign investment is now permitted in export-only ecommerce inventory operations. Companies must register as Exporter-on-Record to stock goods solely for overseas sales. Goods must be manufactured or produced in India and procured against confirmed export orders. This framework aims to boost Indian manufacturers' participation in global e-commerce supply chains. Safeguards ensure timely payments…
The Indian government has notified norms to facilitate ecommerce firms undertaking inventory-based online exports, allowing foreign investment in such a model to boost India's outbound shipments. Under the new guidelines, an ecommerce company with foreign investment must register as an Exporter-on-Record (EOR) with the Directorate General of Foreign Trade (DGFT) to keep goods in stock exclusively for exports through the online medium.
The EOR can procure made-in-India goods from Indian Sellers-on-Record (SOR) against confirmed overseas orders for exports, delegating export documentation, customs formalities, and other logistics to the EOR. The guidelines aim to ensure timely payment to sellers, transparency in overseas sales, and clear accountability for export compliance, while protecting the interests of Indian manufacturers and MSMEs.
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