otification No.: 27/2026-27 dated August 05, 2026
Applicable Act/Rule: Foreign Trade (Development & Regulation) Act, 1992 | Foreign Trade Policy 2023
Applicable Section/Rule: Section 5 of FT(D&R) Act, 1992 read with Para 1.02 of FTP 2023; Paras 9.13–9.19 of FTP 2023 (as inserted); Para 5.2.15.2.5 of Consolidated FDI Policy (as amended vide Press Note No. 3 (2026 Series) dated 23.07.2026)
Effective Date: August 05, 2026
Directorate General of Foreign Trade (DGFT), through Notification No. 27/2026-27 dated 05 August 2026, has amended the Foreign Trade Policy (FTP) 2023 by introducing a new Chapter D (Paras 9.13–9.19) on the Inventory-based Cross-border E-Commerce Facilitation Framework, effective immediately.
Paragraph 9.13 – Definitions: Introduces key definitions including Exporter-on-Record (EOR), Seller-on-Record (SOR), Export Inventory, Domestic Inventory, and Export Rebates and Refunds (ERR). EORs must hold valid IEC and GSTIN, register with DGFT, and, where applicable, operate through a separate legal entity. ERR includes cash-based export incentives but excludes non-transferable duty remission schemes.
Paragraph 9.14 – Objective: Establishes an inventory-based e-commerce export model under which the EOR procures, holds, and exports goods while enabling SORs to access overseas markets.
Paragraph 9.15 – Eligibility and Conditions: Permits eligible non-marketplace e-commerce entities to undertake export-only inventory operations through a registered EOR. Only Indian-origin goods are eligible, title transfers only against confirmed export orders, and speculative inventory build-up is prohibited.
Paragraph 9.16 – Export Inventory Management and Segregation: Requires EORs to maintain separate, identifiable, and digitally traceable export inventory in accordance with the Handbook of Procedures.
Paragraph 9.17 – Payment to SOR and ERR: Requires the EOR to pay the SOR within 7 days of acceptance of goods, irrespective of overseas payment, and to distribute eligible export rebates/refunds proportionately after deducting any permitted administrative charge.
Paragraph 9.18 – Reverse Logistics: Makes the EOR responsible for returned or rejected consignments, prohibits their sale in the domestic market, and places all reverse logistics costs on the EOR.
Paragraph 9.19 – ECEH Utilisation: Requires EORs to utilise notified E-Commerce Export Hubs (ECEHs) wherever practicable, subject to operational readiness and capacity.
Applicability: Applies to eligible non-marketplace e-commerce entities undertaking export-only inventory operations, registered or prospective EORs, and SORs supplying goods for export.
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