Cross-Border E-Commerce Export Inventory in India: The 2026 Framework Explained
India now has a framework for holding export inventory of Indian-made goods for overseas online buyers. Here is who can use it and what it asks of them.
- Issued on 5 August 2026 under the Foreign Trade Policy 2023: DGFT Notification No. 27/2026-27 and Public Notice No. 25/2026-27.
- Stock can be bought only against confirmed export orders, and cannot be diverted to the domestic market.
- Two roles: Exporter-on-Record (EOR) and Seller-on-Record (SOR).
- Sellers must be paid within the prescribed timeline, whether or not the overseas buyer has paid.
What is the framework?
As described by the Press Information Bureau on 5 August 2026, it lets eligible e-commerce entities hold export inventory of goods made in India and export them to overseas buyers. It is issued under the Foreign Trade Policy 2023 through DGFT Notification No. 27/2026-27 and Public Notice No. 25/2026-27, both dated 5 August 2026, and is linked to the foreign-investment amendment in Press Note No. 3 (2026 Series).
Who can take part?
- Exporter-on-Record (EOR): a registered entity that buys goods from Indian sellers against confirmed overseas orders. It exports in its own name and takes on export operations and destination-country compliance.
- Seller-on-Record (SOR): the Indian manufacturer, artisan, trader or MSME that sells to the EOR. The SOR can hand off export documentation, customs, testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics to the EOR.
What are the main conditions?
- Export inventory is procured only against confirmed export orders. Speculative build-up is not allowed.
- Inventory is distinctly identified, kept separate and tracked in a digital repository.
- Export inventory cannot be diverted to the domestic market.
How does the seller get paid?
The seller must be paid within the prescribed timeline, whether or not the overseas buyer has paid. Export rebates and refunds are shared with sellers in proportion to the FOB value of their goods. Sellers also get visibility into the final sale price, order status and shipment tracking.
The PIB release does not give the number of days. Please read the notification and public notice on dgft.gov.in for the exact timeline.
What happens to returned goods?
Returned or rejected consignments must be re-exported, returned to the seller, or disposed of under the prescribed procedures.
What records and checks are needed?
Annual compliance certification and digital records are required.
I am a small manufacturer. Should I consider this?
It can fit if you already sell to overseas online buyers and want a platform to hold stock close to them. Read the seller agreement carefully: payment terms, returns and who claims incentives. We can read the notification and your agreement with you.
- PIB: Government notifies Inventory-based Cross-border E-Commerce Export Framework under FTP 2023 (5 August 2026)
- DGFT: dgft.gov.in (Notification 27/2026-27 and Public Notice 25/2026-27)
Every fact here is taken from Government of India sources, as we read them on 12 November 2026. Please confirm against the original notification for your own shipment before you act. Rules change, and the right answer depends on your product, origin and destination.
Not sure how this applies to your shipment? Send us the product and the route. A call or a message is all it takes, and we are with you at every step of the way, whether you are importing or exporting.
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Multimodal Logistic Systems Pvt. Ltd., Pune, India. Written by Shankar Jha. We are consultants, not a law firm. This post is general information.