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Increasing the limit for courier companies is one of a number of recommendations made in a report titled “Boosting E-commerce Exports from India” published by industry body Assocham and consulting firm EY.
Other recommendations include creating a separate and customised supervisory code for cross-border e-commerce transactions to ensure speedy customs clearance, simplified payment procedures and data collection for policy making.
The e-commerce industry believes that reducing payment adjustment costs based on commission fees will ease the financial burden on small and medium-sized enterprises and also reduce the burden on exporters.
Payment reconciliation is the process of verifying a company's financial records with payment data obtained from financial institutions such as banks and payment gateways.
The report also suggested that the government should clarify who is the “exporter of record” and who is the “seller of record.”
The Commerce Ministry is working on the regulatory framework for India's e-commerce policy, which is expected to be completed by September this year.
The report suggests that adopting more flexible policies and addressing existing customs, payment and logistics challenges could boost e-commerce exports and help the government reach its target of $200 billion to $300 billion by March 2030.
India's e-commerce exports are estimated to be between $4 billion and $5 billion, accounting for about 0.9% to 1.1% of the country's total merchandise exports in the 12 months to March 2023.
These changes will enable Indian e-commerce exporters to become more competitive globally, Assocham Executive Director Deepak Sood said.
As part of the government's 100-day plan, e-commerce export hubs will also be set up near airports and seaports.
Vipin Sapra, tax partner, EY India, added that the government and other regulators should take cues from other advanced e-commerce export markets and plug gaps in current laws and procedures to enable small and medium-sized enterprises to enter global markets efficiently and easily.
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