The upcoming Union Budget may introduce policy measures to boost cross-border ecommerce, particularly for MSMEs, with the government considering relaxation of rules related to return of goods and an increase in the per consignment value limit for ecommerce exports.
Higher Export Limit Under Consideration
Officials said the government is examining a proposal to enhance the value cap for ecommerce exports through courier routes from the current Rs 10 lakh per consignment, aligning it with the Reserve Bank of India’s Rs 25 lakh limit for cross-border payment aggregators.
The proposed measures are aimed at supporting small businesses, artisans and exporters as India develops dedicated ecommerce export hubs, reported ET.
These hubs are expected to offer warehousing, customs clearance, labelling, testing, repackaging and returns processing facilities, helping reduce logistics costs and turnaround time for exporters.
Simplifying Reverse Logistics and Returns
A key area under review is reverse logistics, especially rejected or returned e-commerce consignments.
Industry has sought clearer rules to treat such returns as re-imports, as exporters currently face duty unless goods are certified as identical, creating compliance challenges for MSMEs .
An official said the government is examining courier exports and re-import procedures to ensure MSMEs are not unduly burdened. Ecommerce exports through postal and courier routes are estimated at around USD 1.5 billion annually.
With India targeting USD 1 trillion in merchandise exports by 2030 and global cross-border ecommerce projected to grow to nearly USD 2 trillion by the end of the decade, ecommerce has been identified as a key growth lever.
Policy Support Under Foreign Trade Policy 2023
The Foreign Trade Policy 2023 emphasises enabling cross-border ecommerce for artisans, weavers, craftsmen and MSMEs.
Measures taken include raising the courier export limit to Rs 10 lakh per consignment, extending duty drawback remission of duties and taxes on exported products benefits to courier exports, setting up over 1,000 post office export centres and simplifying export data processing procedures to lower compliance burdens.