The establishment of specialist zones aimed at fostering exports via e-commerce is being considered by the government. The goal is to give companies flexibility for cross-border direct-to-consumer sales while relieving them of the majority of the current compliance requirements.
As per a proposal included in the commerce ministry’s 100-day agenda, private investments are expected to propel the proposed e-commerce export zones, with appropriate regulatory reforms from the government to facilitate their operation.
Even though export consignments sent through e-commerce are typically small and intended primarily for end users, they are currently subject to the same regulations as business-to-business exporters. This raises expenses, adds to delays, and limits some of the tasks necessary for consumer sales.
The ministry plans to have warehousing, customs clearance, returns processing, labelling, testing and repackaging, and related facilities at the dedicated e-commerce export hubs. These will resemble units that are focused on exports (EoUs).
E-commerce exports could reach US $ 200–300 billion by 2030, according to estimates, but they are currently only at US $ 2 billion. From their current level of US $ 800 billion, global e-commerce exports are predicted to reach US $ 2 trillion by 2030.
Raising the value cap per consignment, streamlining the rules for receiving payments, and permitting the re-import of returns without duty payments are all necessary to boost e-commerce exports.
It would be necessary to establish a system for handling returns of goods exported via online shopping. Allowing e-commerce exports to return to India duty-free is necessary because the returns on these exports range from 15 per cent to 20 per cent.
Foreign Exchange Management Act regulations stipulate that export proceeds must be returned to India within 270 days, which may not be possible in the case of e-commerce exports; therefore, adjustments would also be necessary in this situation.
Offering price flexibility, which is essential for e-commerce, is another problem. Discounts or price rise after declaring export price would have to be authorised in e-commerce exports for which RBI has to be addressed. The currency received for other exports should not deviate from the declared export price by more than 10 per cent.
The weight of documentation too would have to be lowered down as at present e-commerce exporters have to submit a set of documents the same as bigger exporters and pay the same amount of bank charge.