Government removes Rs 10 lakh cap on courier consignments to boost e-commerce exports

The move is expected to reduce logistics costs and improve turnaround times for cross-border e-commerce shipments.
E-Commerce
The government has emphasised that the removal of the value cap will aid exporters—especially MSMEs, startups and artisans.File Image
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With an aim to boost e-commerce exports, especially by the small and medium enterprises, the Central Board of Indirect Taxes and Customs (CBIC) announced on Tuesday that it would remove the Rs 10 lakh cap on courier-based export consignments, easing a key restriction that often forced exporters to shift to costlier shipping modes.

The department also announced other measures like the introduction of Return to Origin (RTO) mechanism for faster clearance of unclaimed imports, simplification of process to return uncleared courier imports beyond 15 days to to strengthen India's e-commerce export ecosystem.

These reforms have been undertaken in accordance with the announcements made in the Union Budget to streamline courier-based trade and improve ease of doing business.

"The existing value limit of Rs 10 lakh for commercial export consignments through courier mode has been removed. This is expected to significantly boost exports, especially for e-commerce exporters, by allowing greater flexibility in shipment value and enabling seamless exports through the courier mode, eliminating the need to divert such shipments to conventional air or sea cargo solely due to value restrictions," stated the Ministry in its release.

The government has emphasised that the removal of the value cap will aid exporters—especially MSMEs, startups and artisans—to ship higher-value goods through courier mode without rerouting consignments to air or sea cargo channels. The move is expected to reduce logistics costs and improve turnaround times for cross-border e-commerce shipments.

Besides, goods lying at international courier terminals for over 15 days can now be sent back to their origin through a simplified process, helping ease congestion and reduce delays.

The government has also introduced simplified procedures for re-import of returned or rejected goods, which is often identified as a frequent challenge in e-commerce trade. A risk-based system has been introduced to replace consignment-wise checks, supported by a dedicated return module in the Express Cargo Clearance System.

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