CBIC Extends Export Benefits to Courier Shipments to Boost E-Commerce

In a move to enhance India’s e-commerce export landscape, the Central Board of Indirect Taxes and Customs (CBIC) has announced the extension of export-related benefits for shipments via courier mode, effective from September 12, 2024. This initiative includes benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP), and Rebate of State and Central Levies and Taxes (RoSCTL) schemes. The goal is to boost the competitiveness of MSME exporters and strengthen India’s presence in the global e-commerce sector.

In a statement on September 13, the Finance Ministry said, “This initiative will provide a level-playing field and a conducive environment for the harmonious growth of exports through courier mode, particularly benefiting MSME exporters.” As part of this development, CBIC has made amendments to the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, allowing exporters to claim benefits under the Duty Drawback, RoDTEP, and RoSCTL schemes.

This decision is expected to significantly boost courier exports, further strengthening India’s position in the global e-commerce market. The Finance Ministry also emphasized the growing potential of India’s e-commerce exports, noting that the sector could grow to $400 billion by 2030.

In FY 2022-23, India recorded Rs 7,995 crore in courier exports, with e-commerce contributing Rs 3,510 crore. With the government’s new initiatives, these figures are expected to increase substantially, facilitating more cross-border e-commerce transactions.

The Indian Customs EDI System (ICES) will process the new regulations at International Courier Terminals (ICTs), ensuring seamless customs clearance, including integration with the Public Financial Management System (PFMS). Live trials of this system will be conducted to ensure a smooth transition.

CBIC has also been working on improving the customs process for courier exports, with initiatives like the Express Cargo Clearance System (ECCS), currently implemented at nine major ICTs to accelerate customs processing. Other measures, such as the Auto LEO facility for courier exports and advanced assessment of Courier Shipping Bills, have further simplified the export process.

Collaboration between CBIC and the Department of Posts has also played a key role in boosting e-commerce exports, particularly for MSMEs in remote areas. The “Hub and Spoke” model, which designates 1,015 Dak Niryaat Kendras across the country, facilitates smoother export operations.

These efforts are positioning India as a major player in global e-commerce exports, offering MSME exporters a competitive edge in the international market.

Disclaimer: The information provided in this article is based on updates and reports gathered from various internet sources. Every effort has been made to ensure accuracy and reliability. We encourage readers to verify the details independently before making any decisions.