Reports note that the Centre is looking to promote ecommerce exports and open up the global market for small and medium sellers
Aimed at drawing a framework for allowing stock-based model for ecommerce exports, the government is set to initiate discussions with the industry. The Centre is looking to promote ecommerce exports and open up the global market for small and medium sellers, as per reports.
The reports emphasised that the development comes at a time when the United States has ended a provision that earlier allowed the tax free import of small packages worth up to USD 800. The industry has been urging the Centre to open up the stock model for ecommerce exports. Upon implementation, the proposal will mark a deviation from the current foreign direct investment (FDI) rules that prevent foreign ecommerce marketplaces from holding inventory.
Amazon, Walmart and representatives from logistics companies and other government departments are expected to attend the meeting called by the Directorate General of Foreign Trade (DGFT) on Monday. The reports emphasised that the proposal takes into account a third-party export facilitation model. In this, an export entity linked to ecommerce platforms would handle compliance, custom processes.
The reports explained that the move could result in micro, small and medium enterprises (MSMEs) allot greater focus on product development, branding and quality. With cost-effective Logistics and streamlined regulatory processes, the Ecommerce Export Hubs (ECEHs) initiative is directed towards supporting the Indian small and medium enterprises (SME), the Centre told Parliament earlier.
In a written reply in the Lok Sabha, Minister of State (MoS) for the Ministry of Commerce and Industry, Jitin Prasada, highlighted that the initiative aims to provide dedicated zones for facilitating cross-border ecommerce exports from India.’
The objective is to support SMEs, artisans, and small businesses by reducing the cost and time associated with logistics, streamlining regulatory processes, and simplifying re-imports for ecommerce returns or rejects, the MoS added in the official response. ECEHs shall provide integrated services at a single location, encompassing customs clearance, quality certification, packaging, and off-port warehousing.
