The Ministry of Commerce and Industry will be holding stakeholder consultations on introducing an inventory-based e-commerce export model, under which dedicated export entities would hold inventory and manage customs, compliance and packaging on behalf of micro, small and medium enterprises (MSMEs).
The move comes as the Government explores new measures to boost exports and mitigate the impact of steep 50% tariffs recently imposed by the United States on Indian goods.
According to officials, the consultation, scheduled for 15th September, will address issues such as existing restrictions on foreign direct investment (FDI), the need for explicit carve-outs, strict separation of export and domestic inventory and the roadmap for a pilot programme.
An official said that efforts are under way to build resilient supply chains to prevent future shocks, as part of which e-commerce export hubs are being operationalised. The official added that a proposed inventory model for e-commerce exports would allow third-party facilitation entities to manage compliance and logistics on behalf of MSMEs.
At present, 100% FDI is permitted under the automatic route in the marketplace model of e-commerce, but not in the inventory-based model. The official explained that the idea behind the third-party export facilitation model is to ease the burden on MSMEs, enabling them to focus on quality and branding.
In addition to reviewing the prohibition on inventory-based e-commerce for export-only models, the consultation is expected to cover potential updates to FDI guidelines, amendments to the foreign trade policy, mechanisms for export entities to claim GST refunds and duty remissions and safeguards to prevent misuse of seller-level data.
Officials from the Departments of Posts and Revenue, the Reserve Bank of India, major e-commerce players, logistics companies and associations representing small and medium enterprises are expected to take part in the discussions.
