The Government of India has formally rolled out the Inventory-based Cross-border E-Commerce Export Framework (EOR) under the Foreign Trade Policy (FTP), 2023. This came through Notification No. 27/2026-27 and the corresponding Public Notice No. 25/2026-27, both dated August 5, 2026. Together, they lay out a complete policy and procedural structure to support inventory-based cross-border e-commerce exports of goods made or produced in India.
Cross-border e-commerce has been expanding fast, and that growth opens up real opportunities for Indian manufacturers, artisans and MSMEs to reach buyers overseas. This move follows an earlier change to the FDI Policy through Press Note No. 3 (2026 Series), which allowed inventory-based e-commerce operations, but only for exports. With that policy change in place, the government has now activated the matching regulatory framework under the FTP, designed to enable these exports while protecting the interests of Indian sellers.
How the Exporter-on-Record model works
The framework lets eligible e-commerce entities run export-only inventory operations through a registered Exporter-on-Record (EOR). Here’s how it functions: the EOR buys goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders, exports them under its own name, and takes on responsibility for the export process itself along with meeting whatever regulatory requirements apply in the destination country.
This setup means Indian sellers can tap into overseas markets while handing off the heavy lifting, export paperwork, customs procedures, destination-country compliance, product testing and certification, packaging, labelling, order fulfilment, logistics and reverse logistics, to the EOR. The framework also builds in timely payments to sellers, transparency around overseas sales, and clear lines of accountability for export compliance. The net effect is lower compliance costs for Indian businesses, letting them focus on making things and innovating while still growing their reach in global markets.
Safeguards to protect Indian sellers
Several checks are built into the framework to make sure the benefits actually flow to Indian manufacturers and MSMEs, while keeping regulatory oversight intact. Inventory can only be procured against confirmed export orders, there’s no room for speculative stockpiling meant for exports.
Whatever inventory is earmarked for export has to be clearly identified, kept separate, and tracked through a digital repository so it can be traced end to end. And crucially, that export inventory can’t be quietly diverted and sold in the domestic market instead.
Payments, transparency and returns
Indian sellers are guaranteed payment within a set timeline, regardless of whether the EOR has actually received payment from the overseas buyer yet. Export rebates and refunds have to be split and passed through to Sellers-on-Record in proportion to the FOB value of their goods. Sellers also get visibility into the final sale price their product fetched, order status, and shipment tracking, so they aren’t left in the dark about what happens to their goods after handoff.
If a consignment gets returned or rejected, it has to be either re-exported, sent back to the seller, or disposed of following the prescribed process. To keep the whole system honest and enforceable, the framework also requires annual compliance certification and proper digital record-keeping.
What this means going forward
The expectation is that this framework will pull more Indian manufacturers, traders and MSMEs into global e-commerce supply chains, giving them access to organised fulfilment networks while making sure transparency, timely payments, proper pass-through of export benefits, and solid regulatory oversight all stay in place.
Key Takeaway: The new Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy, 2023 establishes a structured mechanism to expand India’s export ecosystem by enabling eligible e-commerce entities to undertake inventory-based exports through the Exporter-on-Record model.
By reducing compliance burdens for Indian manufacturers, artisans, traders, and MSMEs while ensuring timely payments, transparency, digital traceability, and strict regulatory safeguards, the framework seeks to strengthen India’s participation in global e-commerce value chains, improve the ease of doing business, and support the country’s broader objective of boosting exports through a transparent and technology-enabled trade ecosystem.
M.C.Q.
Question 1: The newly launched Inventory-based Cross-border E-Commerce Export Framework has been introduced under which policy?
- A. National Logistics Policy, 2022
- B. Foreign Trade Policy (FTP), 2023
- C. National Industrial Policy, 2025
- D. Make in India Programme
Question 2: Under the new export framework, the Exporter-on-Record (EOR) is primarily responsible for:
- A. Selling imported goods in the domestic market.
- B. Procuring goods from overseas manufacturers.
- C. Exporting goods under its own name and ensuring compliance with export and destination-country regulations.
- D. Issuing export licences to Indian manufacturers.
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