Amazon, Shiprocket and DHL apply for government’s e-commerce export hub pilot

The government wants to boost Indian e-commerce exports

American giant Amazon, logistics major DHL and shipping aggregator Shiprocket have applied for the government’s ecommerce export hub pilot, sources have told Moneycontrol.

The Director General for Foreign Trade (DGFT) had on August 24 called for expressions of interest from e-commerce and logistics companies and the three firms applied in response, the people cited above added.

“The idea is to start with a pilot project where one or two players will set up the export hubs and based on the learnings from this, the scheme will be implemented on a wider scale,” said a person cited above. “The scheme provides for expedited clearances for e-commerce exports ensuring quicker delivery of goods.”

Currently, India’s e-commerce exports are much smaller than countries such as China, South Korea, and Vietnam. Various industry estimates suggest these exports are in the $3-5 billion range compared to China’s $350 billion annually.

E-commerce exports greatly help small and medium-scale industries, which are often the suppliers of various goods sold on such platforms.

Emails sent to Amazon, Shiprocket and DHL remained unanswered.

The existing compliance requirements for e-commerce exports are very high and delay the processes, industry experts say. Goods being exported need both GST and customs clearances, which often take long.

To address this challenge, e-commerce export hubs will have customs officials posted in the special zone to expedite clearances. The special zones will also provide additional benefits, especially to smaller players, including shared facilities for storage, packaging, labelling and testing.

“This will not just reduce the costs for the e-commerce companies but also provides certain uniformity in standards. The framework also provides for an integrated platform for GST and special window for customs clearance,” said a regulatory expert. “However, returned goods are a huge issue in e-commerce shopping. While the draft modalities provide for ways to handle the returns, one need to see how efficiently the system would work.”

The draft modalities for E-Commerce Export Hubs (ECEH) represent a significant advancement in streamlining e-commerce export processes, Nasscom said in blog post on September 1.

By incorporating centralised fulfilment and customs functions, the ECEH model aligns closely with several key recommendations made by Nasscom. “As the pilot launch progresses, it will be crucial to evaluate its effectiveness in achieving these goals and supporting the growth of India’s e-commerce sector,” it said.