New Delhi [India]Adopting more flexible policies and addressing existing challenges in customs, payments and logistics could help Indian exports achieve the target of USD 200-300 billion in e-commerce exports by 2030, says a report published by EY in collaboration with ASSOCHAM. To achieve the ambitious target, the report has put forward several suggestions to boost exports from the e-commerce sector. The report, titled 'Boosting E-Commerce Exports from India', further recommends encouraging re-imports, removing differential cap on realised payments and extending deadline for revenue realisation will provide a significant boost to e-commerce exports.
“Clear guidelines will be laid down for re-import transactions and standard operating procedures (SOPs) will be developed to allow duty-free re-import for consignments up to USD 600 and for consignments above this threshold to recognise returns as re-imports of returned goods,” it added.
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The report further recommended that the responsibilities of registered exporters and registered distributors need to be clearly defined. It also suggested that export incentives be extended to e-commerce exports and e-commerce export hubs be effectively implemented.
Other key recommendations in the report include creating a separate customs supervision code for e-commerce exports and increasing consignment limits for courier exports.
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The report suggests that adopting more flexible policies and addressing existing challenges in customs, payments and logistics could boost e-commerce exports and meet the government's target of US$200 billion to US$300 billion by fiscal year 2030.
Additionally, the report highlights promotion of re-importation, removal of differential cap on realised payments and extension of deadline for revenue realisation.
Total exports of goods and services are estimated to begin 2024-25 with a strong growth of 6.88 percent, reaching US$ 64.56 billion in April 2024, compared to US$ 60.4 billion in April 2023, according to the Ministry of Commerce and Industry.
India's total exports (goods and services combined) for April 2024 are estimated at USD 64.56 billion, showing a positive growth of 6.88% compared to April 2023.
The report's recommendations included easing of customs procedures, enabling robust coordination and payment settlement mechanisms, and various policy interventions to achieve exponential growth in the e-commerce sector.
To encourage exports through e-commerce, amendments have been proposed to the Courier Imports and Exports (Electronic Filing and Processing) Rules, 2010, including increasing the consignment limit for courier exports to US$ 50,000.
The report also seeks to reduce payment adjustment charges by imposing them as a percentage of the consignment price to ease the financial burden on small e-commerce exporters, allow periodic bill of lading adjustments, remove the 25 percent fluctuation clause on realised payments and extend the payment realisation and repatriation period to up to 18 months in line with global practice.
The EY-ASSOCHAM report also called for extending export promotion incentives to e-commerce exporters under the Courier Import and Export Regulations, 2010, to stimulate growth in the sector. (ANI)
(This is an unedited article auto-generated from a syndicated news feed and LatestLY staff may not have altered or edited the content body)
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