New FTP framework enables inventory-based cross-border exports.
The Government of India has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023 through Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both dated August 5, 2026. The framework provides a comprehensive policy and procedural architecture for facilitating inventory-based cross-border e-commerce exports of goods manufactured or produced in India. It follows the amendment to the FDI Policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports. Under the framework, eligible e-commerce entities may undertake export-only inventory operations through a registered Exporter-on-Record (EOR), which procures goods from Sellers-on-Record (SORs) against confirmed overseas orders, undertakes exports in its own name and assumes responsibility for export operations as well as compliance with destination-country requirements.
The framework requires export inventory to be procured only against confirmed export orders, maintained through a digital repository to ensure traceability and not diverted for sale in the domestic market. It also provides for timely payments to Indian sellers, proportionate pass-through of export rebates and refunds, transparency in overseas sales, and annual compliance certification with maintenance of digital records. According to the Government, the framework is expected to facilitate greater participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains by providing access to organised fulfilment networks while ensuring transparency, timely payments, effective pass-through of export benefits and robust regulatory oversight.
Source: PIB
