Government seeks proposals to establish e-commerce export hubs

The government invites proposals for e-commerce export hubs to support SMEs at boosting cross-border e-commerce from India, Minister of State for Commerce & Industry Jitin Prasada stated in a recent written reply in Parliament. Designed to streamline export operations and reduce costs and delays, the proposed hubs aim to simplify logistics, customs, and compliance procedures key barriers for smaller exporters. According to the Ministry, five pilot ECEHs have been proposed by the Directorate General of Foreign Trade (DGFT). These will offer integrated services including customs clearance, packaging, quality certification, and off-port warehousing at a single location.

In a further push to support e-commerce exports, the Central Board of Indirect Taxes and Customs (CBIC) has raised the value limit for courier exports to ₹10 lakh. From September 12, 2024, key export incentives such as duty drawback and Remission of Duties and Taxes on Exported Products (RoDTEP) will also be extended to courier-mode shipments.
To strengthen last-mile export support, the Department of Posts, in collaboration with CBIC, has set up over 1,000 Dak Ghar Niryat Kendras (DNKs). These centers assist exporters with documentation, packaging, and regulatory compliance. Exporters can also access volume-based discounts under the International Tracked Packet Service, currently available in 41 countries.

Meanwhile, the Reserve Bank of India (RBI) has proposed procedural relaxations for small-value exporters. A draft circular allows authorised dealer banks to close shipping bills up to ₹10 lakh based on exporters' quarterly self-declarations, streamlining the export process under the Export Data Processing and Monitoring System (EDPMS).

Some ECEHs will be developed in partnership with logistics service providers, ensuring integrated warehousing, packaging, and regulatory services. The government has also signed Memoranda of Understanding (MoUs) and Letters of Intent (LoIs) with major e-commerce platforms and domestic logistics firms to boost cross-border trade and raise awareness among micro, small, and medium enterprises (MSMEs).

Regional DGFT offices are conducting outreach and training programs to educate small exporters on export procedures and encourage participation in global trade.