DGFT Operationalises the Inventory-Based Cross-Border E-Commerce Facilitation Framework.

Introduction

The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, has issued Public Notice No. 25/2026-27 dated 5th August 2026, operationalising the Inventory-Based Cross-Border E-Commerce Facilitation Framework under Chapter 9 of the Handbook of Procedures, 2023. The Notice has been issued in exercise of powers conferred under Paragraph 1.03 and Paragraph 2.04 of the Foreign Trade Policy, 2023, as amended from time to time.

The Notice introduces AayaatNiryaat Form (ANF) 9A for registration of "Exporters-on-Record" (EOR) and inserts detailed procedures governing registration, inventory management, seller visibility, reverse logistics, compliance certification, and dispute resolution. This framework represents a significant regulatory development for entities engaged in inventory-based cross-border e-commerce exports from India, and merits careful examination by exporters, e-commerce platforms, and their advisors.

Registration and Operational Obligations of the Exporter-on-Record (Para 9.03)

An application for registration as an Exporter-on-Record must be made in ANF-9A, along with prescribed supporting documents. Any change in particulars furnished at the time of registration must be intimated to DGFT within 30 days through a revised ANF-9A. Upon such intimation, DGFT retains discretion to confirm, modify, suspend, or cancel the registration, depending on whether the EOR continues to satisfy prescribed eligibility conditions.

A digital repository, maintained under Para 9.16 of the FTP, will be accessible to DGFT and other authorised authorities, and will remain operational irrespective of the number of locations at which Export Inventory is held. This repository is required to link procurement records, GST invoices, and export documents of the EOR to the records of each Seller-on-Record — establishing an end-to-end traceability chain.

The EOR bears responsibility for ensuring that goods held in Export Inventory conform to the descriptions, specifications, and quality parameters declared by the Seller-on-Record. Further, the EOR is solely responsible for pre-export compliance with destination-country requirements, including testing, inspection, certification, accreditation, registration, licensing, approvals, and conformity assessments, as well as labelling, packaging, marking, and other product presentation or market access requirements.

Notably, the administrative charge referable to Para 9.17(iv) of the FTP is capped at 10% of the gross amount of Export Rebates and Refunds, and Seller-attributable Export Benefits must be disbursed to the Seller-on-Record within 30 days of the EOR's receipt of such rebates and refunds.

Rights and Visibility of the Seller-on-Record (Para 9.04)

The framework casts an affirmative obligation on the EOR to provide each Seller-on-Record with access to consolidated digital records covering inventory management and segregation of goods supplied by that seller. At minimum, these records must disclose the final sale price to the buyer outside India, order status, and shipment tracking details including destination country.

The EOR is additionally required to ensure that the identity of the manufacturer or brand owner — and, where different, the identity of the Seller-on-Record — is appropriately disclosed to the buyer through the product listing or other applicable means. This provision addresses transparency concerns that have historically arisen in multi-tier e-commerce fulfilment arrangements.

Reverse Logistics and Returned Consignments (Para 9.05)

Goods received from a Seller-on-Record that fail to meet required descriptions, specifications, or quality parameters must be returned within 7 days of acceptance or deemed acceptance by the EOR. Separately, consignments returned or rejected by buyers outside India must be re-exported, returned to the Seller-on-Record, or disposed of by destruction or other agreed means, within 30 days of receipt in India.

The terms governing cancellation, return, rejection, repair, re-export, destruction, or disposal of such goods must be explicitly defined in the agreement between the Seller-on-Record and the EOR, and must be fair, transparent, and verifiable.

Compliance Certification (Para 9.06)

A distinguishing feature of this framework is its reliance on third-party professional certification rather than solely self-declaration. The EOR is required to obtain, from an independent Chartered Accountant, Cost Accountant, or such other professional as DGFT may specify, a certificate confirming compliance with obligations relating to:

• Maintenance and segregation of Export Inventory
• Prohibition on domestic diversion of Export Inventory, including returned or rejected consignments
• Seller visibility and brand disclosure obligations
• Payment settlement, including the payment period and Export Rebates and Refunds disbursement period
• Accuracy of Export Rebates and Refunds apportionment calculations
• Handling and disposal of returned or rejected consignments

The EOR must provide the certifying professional with all books of account, records, and assistance reasonably required. The compliance certificate must be furnished to DGFT within 90 days from the end of each financial year, or at such other intervals as DGFT may prescribe.

Records relating to operations under the framework must be maintained for five years from the end of the financial year in which the relevant Export Inventory is finally exported, re-exported, returned, rejected, destroyed, or otherwise disposed of. Significantly, this record-preservation obligation survives cancellation, suspension, or voluntary surrender of EOR registration, and continues to bind the entity for the full five-year period.

Dispute Resolution (Para 9.07)

Disputes or grievances between the EOR and Seller-on-Record arising under the framework may be referred to the Regional Authority of DGFT having jurisdiction over the place of business of the Seller-on-Record from which the relevant supply was made. The Regional Authority is required to provide both parties a reasonable opportunity of being heard and to endeavour to facilitate resolution within 30 days of receipt of the complaint, without prejudice to the parties' rights under applicable law.

Where a dispute remains unresolved after the prescribed period, or where the Regional Authority considers further examination necessary, the matter may be referred, with recorded reasons, to DGFT (Headquarters) for further examination and appropriate administrative directions or recommendations.

Importantly, this dispute resolution mechanism does not derogate from the rights of a Seller-on-Record that qualifies as a micro or small enterprise under the Micro, Small and Medium Enterprises Development Act, 2006, including the right to approach the Micro and Small Enterprises Facilitation Council under Section 18 of that Act. Sellers falling within this category therefore retain a statutory remedy independent of the DGFT-administered process.

Consequences of Non-Compliance

The declaration accompanying ANF-9A requires the applicant to acknowledge that breach of the undertakings, or non-compliance with framework obligations — including diversion of Export Inventory to the domestic market, delayed or contingent payment to Sellers-on-Record, mis-apportionment of Seller-attributable Export Benefits, misrepresentation of origin of goods, failure to maintain prescribed records, provision of false or misleading information, or misuse of Seller-on-Record information — may, after due process, result in one or more of the following consequences:

1. Cancellation or suspension of EOR registration under the framework
2. Suspension or cancellation of the Importer-Exporter Code (IEC)
3. Placement in the Denied Entity List (DEL) under Para 2.14 of the FTP, 2023
4. Recovery of Export Rebates and Refunds availed, along with applicable interest
5. Initiation of penal or prosecution proceedings under the Foreign Trade (Development & Regulation) Act, 1992, and rules and orders made thereunder, or under any other applicable law
6. Any other action warranted under applicable law

Furnishing false, incorrect, or misleading information in the application or accompanying documents independently constitutes grounds for these consequences.

ANF-9A: Key Disclosure Requirements

The registration form itself requires comprehensive disclosure across several heads, including:

• General entity information — IEC, PAN, GSTIN, constitution, CIN/LLPIN, and authorised signatory details
• FDI and e-commerce entity disclosure — percentage of foreign investment on a fully diluted basis, details of foreign investors, and the nature of the applicant's relationship with the associated e-commerce entity
• Export particulars — turnover figures for the preceding three financial years and proposed countries of export
• E-commerce operations — details of each e-commerce platform and the nature of the applicant's relationship with it
• Warehouse and inventory locations — including whether any location constitutes an E-Commerce Export Hub (ECEH), GST registration, storage capacity, and ownership status

The form also provides for amendment of registration particulars, covering changes in constitution, name, registered office, authorised signatory, shareholding/FDI, platform relationships, warehouse locations, and surrender of registration.

Concluding Observations

This Public Notice marks a material step toward formalising inventory-based cross-border e-commerce exports within India's regulatory architecture, embedding traceability, seller protection, and professional compliance certification into a sector that has largely operated outside dedicated foreign trade procedures. For entities intending to operate as an Exporter-on-Record — as well as for Sellers-on-Record engaging with such entities — early attention to registration, documentation, and internal compliance systems will be essential to avoid the significant consequences prescribed for non-compliance, including IEC suspension and placement in the Denied Entity List.

Entities associated with inventory-based cross-border e-commerce models would be well advised to review their existing seller agreements, inventory management systems, and record-retention practices against the obligations set out in this framework at the earliest.

This article is for general informational purposes and does not constitute legal advice. Entities are advised to consult the full text of Public Notice No. 25/2026-27, the Foreign Trade Policy, 2023, and the Handbook of Procedures before initiating compliance action.