Notification No.– 27/2026-27
Dated: 5th August, 2026
The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce & Industry, has introduced the Inventory-based Cross-border E-Commerce Facilitation Framework under the Foreign Trade Policy (FTP), 2023.
The framework creates a formal structure for export-only inventory operations, allowing registered Exporters-on-Record (EORs) to procure goods from Indian Sellers-on-Record (SORs) against confirmed overseas orders and manage their export operations.
The framework also sets out rules for inventory segregation, seller payments, export rebates and refunds, returned consignments, and the use of E-Commerce Export Hubs.
What Does the New Framework Set Up?
The framework establishes defined roles for the entities involved in inventory-based e-commerce exports and sets conditions for how export inventory can be procured, held and exported.
Exporter-on-Record (EOR)
An Exporter-on-Record (EOR) is an entity holding a valid IEC and GSTIN and registered with DGFT under the framework. It procures goods from one or more SORs and exports and sells them to buyers outside India.
Where an eligible e-commerce entity undertakes export-only inventory operations through a separate legal entity, the EOR must disclose its shareholding pattern and ownership or control relationship with that e-commerce entity at registration or amendment.
Seller-on-Record (SOR)
A Seller-on-Record (SOR) is an entity registered under applicable GST laws that supplies goods produced in India to the EOR against confirmed export orders for sale to overseas buyers.
How Will the Inventory Model Work?
The framework distinguishes export inventory from domestic inventory and prevents speculative stock transfers before an overseas order is confirmed.
- Only goods of Indian origin are eligible under the framework.
- Goods transferred from the SOR to the EOR must be backed by a confirmed export order from an overseas buyer.
- Speculative transfer of title or inventory build-up without a confirmed export order is not permitted.
- Export Inventory must be distinctly identified, segregated and traceable in the EOR’s records.
- The EOR must maintain a digital repository linking procurement, inventory and export documentation.
Payment and Export Benefit Rules
The framework also establishes timelines for paying sellers and provides a mechanism for sharing eligible export rebates and refunds attributable to their goods.
- The EOR must pay the SOR within seven days of accepting or deemed accepting the goods.
- Payment cannot be delayed because the overseas buyer has not yet paid, has returned the goods, or because of another event outside the SOR’s control.
- The EOR may claim eligible Export Rebates and Refunds (ERR), including benefits such as Duty Drawback, RoDTEP and RoSCTL, where applicable.
- ERR must be apportioned among SORs based on the FOB value of each seller’s goods in the export consignment.
- The EOR may deduct an administrative charge, with the remaining seller-attributable export benefit payable to the relevant SOR.
How Are Returned Goods Handled?
The framework places responsibility for reverse logistics on the EOR, including the costs associated with returned or rejected consignments.
Returned or rejected goods cannot be sold or supplied in the domestic market, whether directly by the EOR or through another person or entity.
Role of E-Commerce Export Hubs
The framework encourages EORs to use notified E-Commerce Export Hub (ECEH) infrastructure wherever practicable. Its use remains subject to the operational readiness and available capacity of the notified facilities.
Conclusion
The new framework gives inventory-based e-commerce exports a defined regulatory structure, with clear responsibilities for EORs and SORs.
Its focus on confirmed orders, inventory traceability, timely seller payments, export-related benefit sharing, and reverse logistics creates clearer compliance expectations for businesses using this model to reach overseas markets.
To view the DGFT notification, click here.
You may contact professional DGFT consultants for assistance with e-commerce exports and other DGFT-related requirements.
