The reforms, just ahead of the February 1 union budget, are expected to enable speedier clearances of e-commerce exports through postal services besides providing smoother access to key export incentives such as duty drawback, Remission of Duties and Taxes on Exported Products (RoDTEP), and Rebate of State and Central Taxes and Levies (RoSCTL), which were earlier denied to them.
The changes, which took effect on January 15, address a longstanding procedural bottleneck that had kept postal exporters, especially micro, small, and medium enterprises, and online sellers, outside the mainstream incentive framework.
The move is seen directly benefiting e-commerce firms and thousands of small online sellers who rely on India Post and foreign postal networks to ship low-value, high-frequency consignments overseas.
In a series of notifications late Thursday, the Central Board of Indirect Taxes and Customs (CBIC) accorded electronic export entries filed for postal shipments the same legal standing as shipping bills or bills of export used for air and containerised cargo.
The board also amended duty drawback rules to explicitly allow refunds of customs and excise duties against these electronic postal export entries. In a further step towards digitisation, CBIC notified new electronic Postal Bill of Export formats, with separate forms for e-commerce parcels and other postal exports, enabling automated processing of incentive claims.
While postal exports have grown rapidly in line with e-commerce expansion, many export benefits and compliance processes remain linked to shipping bills, creating uncertainty and delays, and denial of export benefits for postal exporters,The latest measures have not only removed ambiguity around eligibility for incentives but also reduced compliance friction besides improving cash flow for digital-first exporters.
Industry experts say this could encourage more small manufacturers, artisans, and direct-to-consumer brands to tap overseas markets using cost-effective postal routes.
“This is not just a procedural tweak but a strategic realignment of our trade infrastructure to mirror the global e-commerce shift,” said Saurabh Agarwal, tax partner at EY India. “In an era of heightened global volatility, a seamless, digital-first refund mechanism empowers last-mile exporters to stay price-competitive and strengthens India’s export competitiveness.”
