Prelims: Current events of national and international importance | Economy
Why in News?
Recently, The Government has operationalised the Inventory‑based Cross‑border E‑Commerce Export Framework under the Foreign Trade Policy 2023.
Inventory‑based Cross‑border E‑Commerce Export Framework
- A policy introduced by the Government of India under the Foreign Trade Policy 2023.
- It allows online retail and e-commerce companies to hold goods in India specifically and exclusively to fulfil overseas export orders.
Objectives
- Support and Access – Indian manufacturers, traders, and MSMEs gain greater participation in global e‑commerce with organised fulfilment networks.
- Transparency and Oversight – Clear payment rules, assured export benefits, and strong regulatory monitoring prevent misuse.
Key Features
- Framework Operationalisation
- Govt operationalised inventory‑based e‑commerce for exports under FTP 2023.
- Firms must operate via Exporter‑on‑Record (EOR), procuring goods from Sellers‑on‑Record (SORs) only against confirmed overseas orders.
Role of EOR
- EOR procures goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, undertakes exports in its own name.
- Assumes responsibility for export operations as well as compliance with destination-country requirements
- Handles documentation, customs, product testing, packaging, labelling, logistics, and reverse logistics.
Key Features
- Timely Payments – Sellers paid within prescribed timelines, regardless of overseas buyer delays.
- Transparency – Sellers get visibility of sale price, order status, shipment tracking.
- Export Benefits – Rebates/refunds passed proportionately to SORs.
- Safeguards – Inventory only against confirmed orders; no speculative build‑up; digital repository ensures traceability; no diversion to domestic market.
- Annual Certification – Banks must file annual compliance certification.
- Digital Records – Mandatory maintenance of digital records for transparency.
- Rejected Consignments – Must be re‑exported, returned to seller, or disposed as per rules.
Significance
- Global Access – Supports MSMEs, artisans, and manufacturers in reaching overseas markets.
- Cost Efficiency – Cuts compliance costs, allowing focus on production and innovation.
Reference
News on AIR
