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Shardul Nautiyal, Mumbai August 28 , 2024
The Directorate General of Foreign Trade (DGFT) has issued a new trade notice signaling the pilot launch of E-Commerce Export Hubs (ECEH). This initiative, referenced under Section B of Chapter 9 of the Foreign Trade Policy (FTP) - 2023, aims to revolutionize cross-border e-commerce by establishing designated areas equipped with favorable business infrastructure and facilities.

According to the trade notice (Trade Notice No. 14/2024-25), the ECEH concept is centered around several critical objectives like predictability and efficiency. By reducing turnaround time for e-commerce exports, ECEHs will ensure more predictable and faster processing, benefiting exporters. ECEHs will provide simplified procedures for re-importing goods due to returns or rejections, a common challenge in cross-border e-commerce. Under the Integrated Stakeholder Engagement, it will bring together various cross-border e-commerce stakeholders under one roof will foster better collaboration and operational efficiency.

The draft modalities, included as an annexure to the trade notice, lay out specific procedures and infrastructure requirements for the operation of ECEHs: Under the Goods Movement and Pre-Screening program, goods from GST-registered suppliers will be transported to the ECEH with necessary documentation, such as an E-way bill. Upon arrival, the ECEH operator will conduct pre-screening to verify the goods, ensuring compliance with GST documentation, EXIM policy, and accurate classification and quantity. Any discrepancies will be corrected electronically.

ECEHs will feature two primary areas: A fulfillment area for packaging, labeling, and storage and a customs station for clearance, depending on the mode of logistics, such as Inland Container Depots (ICDs) or Foreign Post Offices (FPOs).

Once a buyer is identified, the ECEH operator will generate a commercial invoice and file a Shipping Bill (SB) as an agent for the seller. The pre-screened GST documents will be linked to the SB, enabling customs clearance through the Customs System. Packages will be identified by unique QR codes for seamless tracking and compliance.

The DGFT has invited detailed proposals for setting up these hubs to support, evaluate, and provide hand-holding throughout the pilot phase. Proposals should outline the required software and operational details necessary for seamless export clearance. Interested parties can submit their proposals via email to ecommerce-dgft[at]gov[dot]in and afaque[dot]moin[at]gov[dot]in. Additional queries can also be directed to these contacts.

Moin Afaque, joint director general of Foreign Trade, emphasized that after gathering feedback from the pilot launch, further notifications and circulars will be issued to refine and implement the ECEH initiative on a larger scale. This approach is designed to enhance India’s cross-border e-commerce capabilities, creating a robust framework for export growth.

The pilot launch of ECEHs marks a significant step in India’s trade policy, reflecting the government’s commitment to modernizing trade infrastructure and boosting the competitiveness of Indian businesses in the global e-commerce market.

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