India on Friday released the draft modalities to setup e-commerce export hubs (ECEH) wherein small producers will be facilitated to sell to aggregators and then that aggregator will find markets to sell.The Directorate General of Foreign Trade (DGFT) said in a trade notice that ECEH will have two physical components- a fulfilment area for packing, labelling, storing to take place after pre-screening and till a buyer is found; and the second would be a customs station where the goods will be customs cleared after the buyer is found, ready for dispatch. The hubs were announced in the Budget.“Based on the draft modalities proposed, the government would like to initiate pilot launch of ECEH,” the DGFT said.Export clearances can be facilitated in such hubs and they can also have warehousing facilities, customs clearance, returns processing, labelling, testing and repackaging.The major objectives are to provide for predictability and shortest possible turnaround time for e-commerce exports, easy re-import for e-commerce returns or rejects, bringing various cross-border e-commerce stakeholders under one roof.“Based on the said proposal(s), further details including software requirements for ECEH, to facilitate seamless and expeditious export clearances shall be firmed up,” it said.Through these hubs, export products, which hold huge potential through this medium include jewellery, apparel, handicrafts and ODOP (one district one product) goods.E-commerce exports need flexibility on payments for shipments as selling prices fluctuate in this medium. The draft of Foreign Exchange Management (Export and Import of Goods and Services) Regulations 2024 released by Reserve Bank of India also proposes flexibility on payments received for exports. If implemented it will also facilitate e-commerce exports. In the Foreign Trade Policy 2023, the intent and roadmap for setting up e-commerce export hubs was outlined.The draft also has details on movement of goods from supplier’s premises to ECEH, pre-screening of goods and process flow for customs clearance as per which packages will be identified by unique QR codes linked to shipping bills, and a new development on Customs Systems where the shipping bill would be linked to the pre-screened goods and services tax document.
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