In a move to bolster India’s e-commerce and MSME sectors, the government announced the extension of export incentives to postal shipments starting January 15. The Central Board of Indirect Taxes and Customs (CBIC) expanded export benefits like Duty Drawback, RoDTEP, and RoSCTL schemes to electronic postal exports.
This initiative is expected to enhance the competitiveness of MSME exporters, particularly from smaller towns and remote areas, and give a significant boost to postal exports, as stated by the Finance Ministry. The goal is to create a level playing field for exporters using the postal channel and foster a conducive ecosystem for cross-border e-commerce growth.
India presently has 28 Foreign Post Offices (FPOs) designated under Section 7 of the Customs Act, 1962. CBIC has previously implemented various measures to strengthen cross-border trade through postal and courier modes, including regulations for electronic processing of export and import declarations.
To further support e-commerce exports, CBIC, in partnership with the Department of Posts, introduced a ‘Hub and Spoke’ model leveraging India Post’s vast network. This model involves over 1,000 Dak Niryat Kendras (DNKs) across the country to facilitate booking, aggregation, and processing of export parcels, with a focus on benefiting MSMEs and small exporters.
