New Delhi, Jan 16: India has extended export incentives such as duty drawback and tax remission benefits to goods shipped through the postal route, a move aimed at boosting cross-border e-commerce and improving market access for small exporters, the finance ministry said on Friday.
The Central Board of Indirect Taxes and Customs (CBIC) said exporters using the postal mode will now be eligible for benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes, with effect from Jan. 15, 2026.
The measure is expected to enhance the competitiveness of micro, small and medium enterprises (MSMEs), particularly those based in smaller towns and remote areas, by placing postal exports on par with courier and cargo shipments, the ministry said.
To implement the change, CBIC has amended the Postal Export (Electronic Declaration and Processing) Regulations, 2022, allowing exporters to electronically claim incentives for postal consignments. The amendments were notified on Jan. 15 along with a circular outlining operational procedures.
India has been seeking to expand its share in global e-commerce exports by simplifying customs processes and reducing compliance costs for smaller exporters. A dedicated chapter on promoting cross-border trade in the digital economy was introduced in the Foreign Trade Policy 2023 to support exports through courier services, postal channels, e-commerce export hubs and Dak Niryat Kendras.
The country currently has 28 Foreign Post Offices notified under the Customs Act to handle international postal trade. In recent years, CBIC has introduced electronic processing for postal exports and imports, and automated refunds of integrated goods and services tax (IGST) for postal exports from September 2024.
As part of efforts to strengthen the postal export ecosystem, CBIC and the Department of Posts rolled out a ‘hub and spoke’ model in December 2022, under which more than 1,000 Dak Niryat Kendras across India facilitate the booking and aggregation of export parcels, mainly for MSMEs and small sellers.
The extension of export incentives to postal shipments is expected to further support India’s push to grow e-commerce exports amid rising global demand for small-value, direct-to-consumer shipments.
