India extends export incentives to postal e-commerce shipments

India has extended key export incentives to e-commerce shipments routed through the postal channel, marking a significant policy push to support micro, small and medium enterprises (MSMEs) and strengthen cross-border digital trade. The Central Board of Indirect Taxes and Customs (CBIC) has announced that benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes are now available for electronically filed postal exports, with effect from January 15, 2026.

The move is aimed at providing a level playing field for exporters using the postal channel and strengthening India’s cross-border e-commerce ecosystem. It is expected to enhance the competitiveness of MSME exporters, particularly those based in smaller towns and remote regions, while giving a strong boost to postal exports, the Ministry of Finance said in a press release.

India has extended Duty Drawback, RoDTEP and RoSCTL benefits to electronically filed postal exports from January 15, 2026, boosting e-commerce and MSME shipments.
The CBIC move aims to level the playing field for postal exporters, strengthen cross-border digital trade and enhance competitiveness, especially for exporters in smaller towns, supported by regulatory amendments.

To operationalise the decision, CBIC has approved amendments to the Postal Export (Electronic Declaration and Processing) Regulations, 2022. Notification No. 07/2026–Customs (NT) and Circular No. 01/2026–Customs, both issued on January 15, 2026, outline the regulatory changes and operational procedures enabling exporters to claim the benefits for postal shipments.

The development builds on a series of reforms undertaken by the government to modernise India’s e-commerce export framework. The Foreign Trade Policy 2023 introduced a dedicated chapter on promoting cross-border trade in the digital economy, covering exports through courier, post, e-commerce export hubs and Dak Niryat Kendras.

India currently has 28 Foreign Post Offices notified under the Customs Act, 1962. In recent years, CBIC has strengthened postal and courier trade through end-to-end electronic processing of export declarations, notification of Postal Import Regulations in 2025 and automation of IGST refunds for postal exports from September 2024.

Further support has come through the ‘Hub and Spoke’ model launched in December 2022 with the Department of Posts. More than 1,000 Dak Niryat Kendras across the country now facilitate booking and processing of export parcels, especially for MSMEs and small exporters.

Fibre2Fashion News Desk (SG)