Government seeks proposals to establish e-commerce export hubs

The government has invited detailed proposals to establish E-Commerce Export Hubs (ECEHs) aimed at boosting cross-border e-commerce from India, Minister of State for Commerce and Industry Jitin Prasada stated in a recent written reply in Parliament.

The initiative is designed to support small and medium enterprises (SMEs), artisans, and other small businesses by reducing logistics costs and timelines, streamlining regulatory processes, and simplifying procedures for handling e-commerce returns.

As part of the plan, the Directorate General of Foreign Trade (DGFT) has proposed five pilot projects. These hubs will provide integrated services at a single location, including customs clearance, quality certification, packaging, and off-port warehousing.

Additionally, Prasada informed that the Central Board of Indirect Taxes and Customs (CBIC) has increased the value limit for courier exports to ₹10 lakh. From September 12, 2024, export duty remission benefits—such as duty drawback and remission of duties and taxes on exported products—will also apply to exports made via courier mode.

The Department of Posts, in collaboration with CBIC, has established Dak Ghar Niryat Kendras (DNKs) to help exporters with documentation, packaging, and compliance. A total of 1,013 DNKs have been notified. The International Tracked Packet Service, which covers 41 countries, offers volume-based discounts to exporters. In addition, the Reserve Bank of India has issued a draft circular proposing procedural relaxations for small-value exporters under the Export Data Processing and Monitoring System. The circular enables authorised dealer banks to close shipping bills up to ₹10 lakh based on quarterly declarations from exporters regarding realisation and value adjustments.

Some ECEHs are expected to be implemented by logistics service providers to ensure integrated delivery of warehousing, packaging, and regulatory services. The government has signed Memoranda of Understanding and Letters of Intent with e-commerce platforms and domestic logistics firms to promote cross-border trade and build awareness among MSMEs.

Regional DGFT authorities have also undertaken outreach and training activities to support small exporters and familiarise them with export procedures.