In a major reform aimed at strengthening India’s export ecosystem, the Central Board of Indirect Taxes & Customs (CBIC) has extended key export incentive schemes to goods exported through the postal route. Exporters using postal shipments will now be eligible for Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL), effective January 15, 2026.
The move is expected to significantly enhance the competitiveness of MSME exporters, particularly those based in smaller towns and remote regions, by lowering compliance hurdles and improving access to global markets. The finance ministry said the decision would provide a level-playing field for exporters using the postal channel and give a major push to cross-border e-commerce.
EY India Tax Partner Saurabh Agarwal said the reform dismantles a long-standing compliance barrier for MSMEs operating from remote clusters. He added that, ahead of the Union Budget 2026, the measure reflects the government’s commitment to ease of doing business, turning post offices into gateways for global trade and supporting India’s Viksit Bharat vision through inclusive, digitally driven growth.
To operationalise the benefits, CBIC has approved amendments to the Postal Export (Electronic Declaration and Processing) Regulations, 2022, allowing exporters to claim incentives electronically for postal exports. India currently has 28 Foreign Post Offices (FPOs) notified under the Customs Act, 1962.
The initiative builds on earlier reforms, including end-to-end electronic processing of postal export declarations, notification of Postal Import Regulations, 2025, and the automation of IGST refunds for postal exports implemented in September 2024—collectively strengthening India’s postal and courier trade infrastructure.