Cross-border E-Commerce Export Framework

Until now, a foreign-funded platform could not own goods and sell them in India. It still cannot. But now, it can own them and export them.

Operationalised on 5 August 2026

A new rule lets a foreign-funded firm own export goods in India, for the first time.

• India switched on its inventory-based Cross-border E-Commerce Export Framework on 5 August 2026.
• The Directorate General of Foreign Trade (DGFT) issued it. DGFT sits under the Ministry of Commerce and Industry.
• The framework sits inside the Foreign Trade Policy (FTP), 2023, and its Handbook of Procedures.
• It follows an FDI policy change from DPIIT: Press Note 3 (2026 Series). This change permits inventory-based FDI, but only for exports.

Two New Roles: EOR and SOR

The framework creates two new registered roles, and each one has a clear job.

• The Exporter-on-Record (EOR) and the Seller-on-Record (SOR) are the two new roles.
• An EOR buys goods from Indian SORs. It then exports those goods under its own name.
• The EOR handles customs clearance. It also handles rules and paperwork in the destination country.
• An SOR is simply the Indian manufacturer or supplier. It sells its goods to the EOR, for export.

No Speculative Stockpiling

A few rules stop this new route from being misused.

• An EOR can only build up export stock against confirmed overseas orders. Speculative stockpiling is not allowed.
• Export inventory must stay separate from domestic stock. Digital records must track it throughout.
• Returned or rejected goods cannot enter the Indian domestic market. They must be re-exported, sent back to the supplier, or destroyed under the rules.

Registration Through Form ANF 9A

Getting into this framework comes with its own paperwork, and its own promises.

• Registration happens through the Aayaat Niryat Form, known as ANF 9A.
• Registered entities must file compliance papers every year. They must also keep records for 5 years, even after their registration ends.
• Sellers-on-Record get two guarantees in return. They get timely payment, within 30 days. They also get a fair share of any export incentives their goods earn.

Don’t Confuse This with the Marketplace Model

India already runs a very different e-commerce model, and the two should not be mixed up.

• India’s marketplace model never lets the platform own the goods it sells. It already gets 100% FDI, under the automatic route.
• A past UPSC question tested this exact rule. Can a foreign e-commerce firm sell its own goods, alongside running a marketplace? Can it own big sellers on its platform, even partly? Neither is correct — a marketplace platform cannot do either. (See the full marketplace-model rules)
• The inventory-based model is different. It has been barred for domestic sales since 2016. This new framework opens it up, but strictly for exports, never for selling inside India.
• It mainly targets manufacturers, artisans, and MSMEs. The goal is an organised export channel for them, not just an opening for large foreign platforms.

Current Affairs — 100% FDI, One Narrow Route

Two 2026 government actions, taken weeks apart, set this framework in motion.

• DPIIT amended its FDI policy on 23 July 2026, through Press Note 3 (2026 Series). (Source: India Briefing)
• This amendment allows 100% FDI, for firms that export the goods they own.
• DGFT then notified the operational framework on 5 August 2026. It used Notification No. 27/2026-27, and Public Notice No. 25/2026-27. (Source: ANI)
• The government’s stated aim is simple. It wants to give manufacturers, artisans, and MSMEs a better export route. (Source: India Briefing)

Exam Trap — Export-Only, Not a General Opening

One mix-up shows up again and again, in questions on this framework.

• Do not read this as India relaxing inventory-based FDI generally. It carves out one narrow, export-only exception, to a rule that has otherwise stood since 2016.
• Export goods can never simply get redirected to Indian buyers. Even returned goods must be re-exported, sent back, or destroyed — never sold at home.
• A question can imply this framework opens e-commerce for India’s own market. That claim is wrong. It is testing this exact boundary.