CBIC extends export benefits to courier shipments to boost e-commerce

This move will give a major boost to courier exports

In a significant move aimed at enhancing India’s e-commerce export landscape, the Central Board of Indirect Taxes and Customs (CBIC) has extended export-related benefits under the duty drawback, Remission of Duties and Taxes on Exported Products (RoDTEP), and Rebate of State and Central Levies and Taxes (RoSCTL) schemes for shipments made through courier mode, effective from September 12, 2024. This decision is expected to boost the competitiveness of Micro, Small & Medium Enterprises (MSME) exporters and strengthen India's position in the global e-commerce sector.

“This initiative will provide a level-playing field and a conducive environment for the harmonious growth of exports through courier mode, particularly benefiting MSME exporters,” the Finance Ministry said in a statement on September 13.

As part of the initiative, CBIC has approved amendments to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, enabling exporters to claim benefits like Duty Drawback, RoDTEP, and RoSCTL. “This move will give a major boost to courier exports and further strengthen India’s position in the era of the emerging global e-commerce sector,” the ministry added.

Highlighting the expected growth in India's e-commerce exports, the Finance Ministry noted, "As per estimates, India's e-commerce exports are likely to rise to $400 billion by 2030."

In FY 2022-23, the total value of courier exports stood at Rs 7,995 crore, with e-commerce exports accounting for Rs 3,510 crore. These figures are expected to rise significantly with the latest government initiatives aimed at facilitating cross-border e-commerce.

The new regulations will be processed through the Indian Customs EDI System (ICES) at the International Courier Terminals (ICTs), leveraging its capabilities for customs clearance, including scroll generation and integration with the Public Financial Management System (PFMS). Live trials of this system will be conducted to ensure smooth operations.

The CBIC has also been working to streamline the customs process for courier exports, launching the Express Cargo Clearance System (ECCS) in nine major ICTs to facilitate quicker customs processing. Other initiatives, such as the Auto LEO facility for export through courier mode and advanced assessment of Courier Shipping Bills, have further simplified the process.

Additionally, CBIC's collaboration with the Department of Posts has been instrumental in promoting e-commerce exports, particularly for MSMEs in remote areas. "Under the innovative ‘Hub and Spoke’ model, 1,015 Dak Niryaat Kendras have been designated across the country to facilitate seamless export processes," the statement added.

These initiatives are set to position India as a key player in global e-commerce exports, giving a competitive edge to its exporters, particularly in the MSME sector.