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DGFT Notifies Procedures to Allow Export‑Only Inventory for Foreign‑Backed E‑commerce

Immediate rules require registered exporters-on-record and digital traceability to keep export stock separate and prevent diversion of Indian goods.

Overview

  • The Directorate General of Foreign Trade has issued a public notice that takes effect immediately and sets operational procedures for inventory-based cross-border e-commerce.
  • E‑commerce firms with foreign investment can hold inventory only for exports through a registered exporter-on-record (EOR) that must be a separate legal entity with disclosed ownership.
  • Export stock must be procured against confirmed overseas orders, kept in a distinct digital repository for traceability, and cannot be sold in the domestic market.
  • The rules set requirements for seller visibility, timely payments to Indian sellers, reverse logistics for returns, compliance certification, and referral of disputes to DGFT regional authorities.
  • Officials say the framework aims to boost Indian manufacturers and MSMEs’ access to global marketplaces while keeping tight controls to ensure export benefits flow to domestic producers.