India Removes ₹10 Lakh Courier Export Cap

According to tradeflock.com, India has removed the ₹10 lakh (approximately $12,000) per-consignment value cap for exports via registered courier services and foreign post offices, effective April 1, 2026.

Policy Change and Legal Basis

The amendment modifies Paragraph 9.05 of the Foreign Trade Policy (FTP) 2023, eliminating the prior ceiling that constrained high-value e-commerce shipments. Issued as Notification No. 67/2025–26 on March 27, 2026, the change was enacted under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, and aligns with FTP 2023’s foundational principles in Paragraphs 1.02 and 2.01. The Directorate General of Foreign Trade (DGFT) confirmed that while the value limit is gone, exportability remains governed by the FTP and the ITC(HS) classification, preserving regulatory safeguards under the Customs Act, 1962.

The notification states:

“There shall be no value limit prescribed per consignment for exports through courier service.”

Targeted Impact on Supply Chain Actors

• High-value goods exporters: Electronics, pharmaceuticals, luxury items, and jewelry exporters no longer need to split orders or shift to costlier air/sea cargo.
• E-commerce platforms: Direct-to-consumer brands gain ability to offer faster, end-to-end courier delivery for premium products.
• SMEs: Reduced procedural friction improves global market access and competitiveness.
• Logistics providers: Courier firms—including DHL, FedEx, and domestic players—can expand service scope and revenue potential across higher-value consignments.

Complementary Trade Facilitation Measures

This reform is part of a coordinated package to accelerate cross-border e-commerce logistics:

• Return to Origin (RTO) Facility: Uncleared or unclaimed goods held >15 days (non-prohibited/restricted) may be returned to origin, reducing terminal congestion.
• Simplified re-import procedures: A dedicated return module in the Express Cargo Clearance System streamlines processing of rejected or returned e-commerce goods.
• Customs Integrated System (CIS): A comprehensive digital cargo clearance platform is planned for rollout over the next two years.

Industry Context and Practical Implications

India’s e-commerce exports reached $4 billion to $5 billion in FY23. Globally, eMarketer projects retail e-commerce sales will hit $8.1 trillion by 2026, with cross-border trade expanding its share. Similar digital trade simplifications have been adopted elsewhere: the EU’s Customs Decisions Digitalisation Programme and Singapore’s TradeXchange platform both emphasize real-time data sharing and automated risk assessment. For supply chain professionals, this means fewer shipment splits, lower dwell time at courier hubs, reduced documentation overhead, and tighter integration between e-commerce order management systems and customs declaration workflows. However, success hinges on awareness campaigns—especially among SMEs—and upgrades to courier IT infrastructure to support valuation, insurance, and real-time customs status tracking for high-value parcels.

Implementation Considerations

Challenges include ensuring widespread awareness among exporters, upgrading courier systems for secure high-value handling, strengthening insurance and loss-mitigation protocols, and synchronizing DGFT, CBIC, and private logistics providers on new clearance protocols. The notification was signed by Lav Agarwal, Director General of Foreign Trade and Ex-officio Additional Secretary to the Government of India, underscoring institutional priority.

Source: tradeflock.com

Compiled from international media by the SCI.AI editorial team.