Postal Exports Get Major Boost as Government Aligns Them with Cargo Shipments

The Union Government has overhauled customs procedures to place exports made through the postal channel on the same footing as conventional cargo shipments. The reform is expected to substantially benefit small exporters, online sellers, artisans and MSMEs by simplifying compliance and unlocking long-pending export incentives.

The changes, notified by the Central Board of Indirect Taxes and Customs (CBIC) and effective from January 15, mark a decisive shift in India’s export facilitation framework ahead of the Union Budget. By removing procedural bottlenecks that had long constrained postal exports, the government aims to accelerate last-mile international trade and expand India’s digital export footprint.

Postal Mode Recognised at Par with Cargo Exports

Under the revamped rules, export consignments sent through the postal route will now be treated at par with those shipped via air or sea cargo for customs and incentive purposes. This alignment ensures that exporters using India Post are no longer disadvantaged due to the mode of shipment.

Crucially, electronic export entries filed for postal shipments will now carry the same legal recognition as shipping bills or bills of export traditionally required for cargo consignments. This reform addresses a long-standing anomaly that had kept postal exporters outside the mainstream export incentive regime.

Access to Export Incentives Expanded

The policy overhaul extends eligibility for key export benefit schemes—Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL)—to postal exports, which were earlier excluded or faced uncertainty due to documentation gaps.

CBIC has also amended drawback rules to explicitly permit refunds of customs and excise duties for exports routed through the electronic postal export system. This is expected to significantly improve liquidity and cash flows for digital-first exporters and micro enterprises.

Boost for MSMEs and Small Online Sellers

Industry stakeholders see the move as a game-changer for thousands of small sellers who rely on India Post’s extensive domestic and international network to ship low-value, high-frequency consignments. For many micro and home-grown businesses, the postal route remains the most cost-effective and accessible channel for reaching overseas markets.

By easing compliance requirements and reducing processing delays, the reform is expected to bring more exporters—particularly from smaller towns and remote regions—into the formal export ecosystem.

Strengthening India’s Global E-Commerce Ambitions

According to official estimates, India’s cross-border e-commerce sector is on a steep growth trajectory, with merchandise exports targeted to cross USD 1 trillion by 2030. Globally, cross-border e-commerce is projected to grow to nearly USD 2 trillion by 2023, highlighting the strategic importance of seamless trade facilitation.

India currently leverages foreign postal networks across multiple countries to ship e-commerce parcels, and the updated framework is expected to further integrate these channels into the country’s broader trade infrastructure.