Ministry of Commerce and Industry operationalises export-only inventory architecture under Foreign Trade Policy 2023 to facilitate global market access for Indian manufacturers

By DW Pulse | NEW DELHI โ€” 5 August 2026 โ€” The Government of India has operationalised the inventory-based E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023 through Notification No. 27/2026-27 issued by the Ministry of Commerce and Industry. The official notification and corresponding Public Notice No. 25/2026-27 establish a streamlined regulatory mechanism enabling eligible e-commerce entities to execute export-only inventory operations across global markets, according to the Press Information Bureau.

Key Highlights

  • Government notifies inventory-based e-commerce export guidelines under Foreign Trade Policy (FTP) 2023
  • Framework empowers Exporter-on-Record (EOR) entities to handle customs, logistics, and overseas compliance for Indian sellers.
  • Mandates strict digital segregation of export stock to prevent domestic market diversion and ensure seller payment timelines.

Operational Architecture of E-Commerce Export Framework

Under the newly notified E-Commerce Export Framework, registered Exporter-on-Record (EOR) entities are authorized to procure inventory directly from domestic Sellers-on-Record (SORs) against confirmed overseas orders. The EOR undertakes exports in its own name while assuming end-to-end legal accountability for destination-country regulatory compliance, product testing, packaging, custom formalities, and reverse logistics.

This operational model enables Indian artisans, traders, and Micro, Small and Medium Enterprises (MSMEs) to access international supply chains without undertaking individual overseas logistics burdens. The framework builds upon recent amendments to the Foreign Direct Investment (FDI) Policy under Press Note No. 3 (2026 Series), which permitted inventory-based e-commerce models exclusively for export operations.

Safeguards for Sellers-on-Record and MSMEs

The policy incorporates stringent statutory safeguards to protect domestic manufacturers and maintain regulatory oversight. Speculative inventory build-up is explicitly prohibited, requiring export stock procurement to occur strictly against verified international consumer orders.

Export inventory must be distinctly segregated, digitally tagged, and maintained within dedicated repositories to guarantee complete product traceability. The framework strictly prohibits the diversion of designated export stock into the domestic market.

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Regulatory Oversight and Foreign Direct Investment Integration

To protect financial interests, the notification mandates defined payment timelines to domestic sellers irrespective of overseas buyer remittance schedules. Export rebates and duty refunds must be passed through directly to Sellers-on-Record in proportion to the Free on Board (FOB) valuation of exported goods.

Participating entities are required to submit annual compliance certifications and maintain immutable digital records for regulatory audit. Rejected or returned international consignments must be re-exported, returned to the original manufacturer, or disposed of under prescribed official protocols.