The Central Board of Indirect Taxes and Customs (CBIC) has introduced new regulations aimed at enhancing ecommerce exports from India.
Key changes include:
- Elimination of the ₹10 Lakh value cap per consignment on courier exports.
- Introduction of a streamlined framework for managing returned and rejected parcels.
- A legally-backed return to origin (RTO) mechanism for uncleared shipments.
According to the finance ministry, these norms are designed to improve the ease of doing business, minimize logistics inefficiencies, and boost India’s competitiveness in global exports. The measures are anticipated to decrease dwell time, cut transaction costs, and provide significant support to export startups.
The new rules took effect on April 1.
By removing the value cap, exporters will gain more flexibility in shipment values, reducing reliance on costly conventional air or sea cargo for higher-value shipments.
To tackle delays with unclaimed imported goods, the CBIC has established an RTO facility. Goods that are not restricted and remain uncleared for over 15 days will be returned to their origin through a simplified process.
Additionally, the procedure for re-importing returned or rejected ecommerce goods has been simplified. A dedicated return module has been created within the Express Cargo Clearance System to ensure efficient processing of these returns.
These regulations follow finance minister Nirmala Sitharaman's announcement in her Budget 2026 speech, where she proposed the removal of the value cap and the rollout of the Customs Integrated System (CIS) over the next two years.
The implementation of these new rules is expected to significantly benefit the domestic ecommerce sector, allowing D2C brands to export high-value products without restrictive limits. This will also simplify logistics for Indian brands targeting international markets.
Moreover, startups engaged in cross-border manufacturing, particularly in hardware and electronics, will experience improved turnaround times and reduced friction for imported components.
The Indian ecommerce market is projected to reach a $345 billion opportunity by 2030. In FY23, ecommerce exports from India were estimated to be between $4 billion and $5 billion, according to an EY report.
