Govt overhauls postal export regulations to boost e-commerce exports

Subscribe to enjoy similar stories. The government has extended key export incentives to goods shipped through the postal route to bring them on par with cargo cleared through ports and airports, a move aimed at boosting e-commerce shipments and easing compliance for small exporters amid rising global trade uncertainty.

In a set of three notifications issued late on Thursday, the Department of Revenue updated electronic postal export documentation and amended the Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to bring postal exports on par with cargo cleared through ports and airports. The changes align postal exports processed through the customs automated system with traditional shipping bills, addressing a long-standing compliance gap faced by exporters using the postal channel.

The move targets low-value, high-volume exports that have grown rapidly with cross-border e-commerce and are increasingly routed through India Post and foreign postal networks. The biggest beneficiaries are MSMEs, e-commerce sellers, artisans and first-time exporters who rely heavily on postal services due to lower costs and simpler logistics.

The changes also bring more certainty, reduce disputes with field officers and help exporters plan their cash flows better, said Rajat Mohan, senior partner at AMRG & Associates. “Many exporters send goods abroad through the postal route, which is legally permitted under the Customs Act.

However, because export incentive rules were largely written keeping traditional shipping bills in mind, these postal exporters often faced denial or delay of benefits like duty drawback and RoDTEP," said Mohan. “With these amendments, the