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Operationalizing Inventory-based Cross-border E-Commerce Export Framework

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The Government of India has operationalized an inventory-based framework under FTP 2023, enabling MSMEs to utilize 'Exporter-on-Record' services to streamline global exports.

The Government of India has officially operationalized the Inventory-based Cross-border E-Commerce Export Framework, a significant policy shift under the Foreign Trade Policy (FTP) 2023. This framework is designed to simplify the export process for Indian Micro, Small, and Medium Enterprises (MSMEs) and artisans by allowing them to store goods in overseas warehouses and fulfill orders more efficiently. Traditionally, Indian MSMEs have faced significant hurdles in cross-border trade, including complex customs procedures, high logistics costs, and the inability to offer fast delivery to international customers. Under the new framework, eligible e-commerce entities can now leverage a registered 'Exporter-on-Record' (EoR). The EoR acts as the authorized entity responsible for compliance, customs clearance, and regulatory filings in the destination country. By shifting the inventory closer to the consumer, Indian sellers can significantly reduce delivery timelines and improve the customer experience, thereby enhancing their competitiveness in global markets.

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