These developments come at a crucial stage when the United States has ended the duty-free treatment for low-value imports from China and Hong Kong
In order to address the short-term credit needs of the ecommerce exporters and provide support to those maintaining warehouses abroad, the Centre is working on a proposal for the same, as per the media reports.
The reports highlighted that on the lines of the Kisan Credit Card, the commerce department has proposed a credit card. This is aimed at reducing the borrowing costs for exporters as compared to the current 15 to 18 per cent range.
With the government seeking to provide a much-needed push to the stagnant exports, a note is underway for the approval from the Expenditure Finance Committee, the reports added. The exports marked a marginal uptick of 0.08 per cent from the financial year 2024 to stand at USD 437.42 billion in the previous fiscal year.
These developments come at a crucial stage when the United States has ended the duty-free treatment for low-value imports from China and Hong Kong. US President Donald Trump signed an executive order removing the de minimis exemption for imports from China and Hong Kong.
This rule had previously allowed small packages valued upto USD 800 to enter the US without any duty, benefiting Amazon and Chinese firms like Shein and Temu, as per a report by the Global Trade Research Initiative (GTRI). Over 1,400 million low-value packets entered the US in 2024 from the world, with China alone exporting USD 46 billion worth of such goods, the report added.
Through courier and postal routes, the country’s ecommerce exports are pegged at around USD 1.5 to 2 billion annually, the reports added. The plan also aims to provide support to those who maintain warehouses abroad, as per the reports, which added that the apex bank and the commerce and industry ministry are engaged in talks to reduce delays in bank reconciliation under the Export Data Processing and Monitoring System (EDPMS).
