Import-export operations require huge capitals, according to the size of import order received. Manufacturer exporter, and star trading houses, have the necessary infrastructure and financial resources to execute import -export operations. They are financed by private investors, or public government organizations under various schemes. If you are a beginner in export-import trade, and want to start an export business, e-commerce exports is the best way to start with less capital.

FAQs

Table of Contents

what is the prerequisite for e-commerce exports?

Any exporter who has IEC code, can apply for Postal bill of export(PBE) to execute e-commerce exports.

To do export -import operations, apply for IEC code at DGFT website. IEC code allows you to export-import goods legitimately with various countries.

what type of exports require less capital?

selection of a product with low price, but with good market potential is the key to start, when you have one lakh or less capital. e-commerce exports require very minimal capital, and the parcels of e-commerce export have fast clearance compared to other modes of export. e-commerce exports are time-bound, with express delivery to the buyers.

what is Postal Bill of Export(PBE) ?

To export goods through FPO or Authorized courier, filing of a Postal Bill of Export (PBE) is required, in the form prescribed under the “Export by Post Regulations 2018”. The two PBE forms, PBE-I and PBE-2 are for eCommerce exports:-

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Postal%20Bill%20of%20Export-I.pdf

https://www.indiapost.gov.in/VAS/DOP_PDFFiles/Postal%20Bill%20of%20Export-II.pdf.

what commodities can you export through e-commerce?

Any commodity in guidelines with ITC/HS code, can be exported through e-commerce. There are 6 commodities in e-commerce exports, eligible for reward under MEIS(merchandise export of India scheme) scheme.

Handicraft items or products
Handloom products
Books and periodicals
Leather footwear
Toys
Customized fashion garment on request

Commercial Exports through E-Commerce

This includes all other goods not falling under the category of “Personal Imports”. This includes commercial samples as well.

In commercial exports including online e-commerce exports , it is mandatory to file the supporting documents manually, such as

Postal Bill of Export (PBE)
Invoice,
Packing List,
IEC Certificate,
GSTN Number,
Letter Undertaking/Bond,
terms of payment and remittance proof of foreign exchange received at Foreign Post Office (FPO).
In case of import of goods, it is mandatory to file a Postal Bill of Entry. Such Bills of Entry are filed manually.

what are FPOs? can you export through postal service?

The facility for import and export of goods by Post Parcels is provided by the Postal Department at its Foreign Post Offices(FPO) and sub-Foreign Post Offices. Customs facilities for examination, assessment, clearance etc. are available at these Post Offices.

Facility for export clearances is also available at Export Extension Counters opened by the Postal Department where parcels for export are accepted and cleared by the Customs.

Starting with 5 FPOs Delhi, Mumbai, Chennai, Kolkata and Kochi, the customs has notified additional locations through notifications Notification No. 31/2017 Customs (N.T) dated 31st March, 2017 and Notification No. 103 /2018- Customs (N.T.) dated 31st December,2018. Thus exports through Posts are possible through 28 locations across the country.

what is e-commerce exports ?

e-commerce exports refers to, the export of goods hosted on a website accessible through the Internet to a purchaser. While the dispatch of goods shall be made through courier or postal mode as specified under MEIS.

e-commerce exports websites list

Alibaba
IndiaMart
EC21.com
Made From India
Exporters India
ECVV
ECplaza
Amazon
e-bay
Global sources
Seabiz

what is the process of e-commerce export?

Any exporter having an IEC code can export goods through e-commerce platform. The seller can sign in as an exporter on amazon.com with IEC code, and GSTN No.

Export orders recieved through e-commerce platform are sent through couriers or foreign post offices.

Applications for export of goods through courier or FPOs using e-commerce can be filed online using signature in Ayat Niryat Forms (ANF 3D) by the exporter.

The applicant shall file a separate application for each quote of export and concern digital regional authority of DGFT will manually examine the submitted documents before the grant of reward scrips.

The exporter shall be required to attach the invoice with bill of export, and is required to provide details of the e-commerce transaction in PBE namely:
1. URL of the website through which goods have been sold. The SKU number as a reference link to the sale through e-commerce on the website.
2. Payment transaction reference number corresponding the payment received through International card or debit card for the sale made on the website
3. The exporter should comply with the requirements under section 82 of the Customs Act 1962 like filing of label or declaration as prescribed by the Postal Department

PBE along with goods shall be presented to the customs at FPO. PBE shall be processed manually. upon processing of PBE by Customs the goods shall be presented to the Postal Department.

LEO -let export order for PBE

with acknowledged receipt of shipment on PBE and the tracking number of each shipment is generated.
upon a fixation of the tracking number by postal authorities PBE shall be brought back to the proper officer for grant of let export order LEO.

The original PBE will be retained by the Customs and the duplicate PBE will be handed over to the exporter since e-commerce shipments are a tiny bomb express shipment.

Principal commissioner are advised to give speedy clearance of the passes and used non intrusive examination techniques like x-ray facilitating clearance

If any specific suspicion regarding the goods contained, the parcel is examined with the approval of deputy commissioner of Customs or assistant commissioner of Customs.

E-commerce exports through authorized courier

For exporting goods, the Authorised Courier has to file Courier Shipping Bills with the respective officer of Customs at the airport or LCS before the flight’s departure or other modes of transport. The Authorised Courier has to present the export goods to the concerned officer for inspection, examination, and assessment.

For certain export goods, a regular Shipping Bill, as mentioned in the Shipping Bill and Bill of Export Regulations 1991, has to be filed. These Shipping Bills are processed at the Air Cargo Complex, and then with the permission of Customs, the goods are handed over to the courier agency for onward dispatch.

Filing of shipping bill and bill of export for Clearance of Export Goods

Different forms have been prescribed for the export of documents and other goods. As per the Courier Regulations for electronic mode, the forms for filing Customs declarations for export goods are

Courier Shipping Bill-III (CSB-III) for documents in Form G.
Courier Shipping Bill-IV (CSB-IV) for goods in Form H

what is the maximum limit that can be sent by postal exports?

Export of goods for the free on board (FOB)value not exceeding up to rupees 25000/- per consignment Shall be entitled to reward under the MEIS scheme.

DGFT has made it clear that if the value of exports using e-commerce platform is more than rupees 25000/- for consignment exporter shall be entitled to MEIS but only to the extent of 25000 only.

packaging for e-commerce exports

Protective packaging is used in various applications, such as food, electronics, cosmetics, and pharmaceutical industries. Products include boxes or storage containers, packing materials, liners, and spacers. Flexible products, such as air pillows, paper fill, bubble packaging, and mailers, are expected to be the primary product beneficiaries of rapid growth in the e-commerce market.

how is payment received in e-commerce exports?

The payment for goods purchased on an E commerce platform shall be done through international credit or debit cards and as per the reserve bank of India circular (RBI/2015-2016/85 A.P{DIR Series }Circular no.16, dated september 24, 2015)

Who is responsible for damage to Postal export articles?

The Postal authorities being custodians of the Import parcels are at all times responsible for the safety, security, and handling and repacking of the contents of the consignments. Therefore, no claim for compensation on account of shortage, pilferage, improper handling, damage or defective packing lies with the Customs.

For queries regarding pilferage, shortage, improper handling, damage or defective packing the Postal Department should be contacted.

The Postal authorities may be contacted for queries relating to the status of consignments at following email : fgnpoair@gmail.com; packpost@gmail.com

status tracking:

The status of the consignment can be checked from the Postal Department website www.indiapost.gov.in or http://ipsweb.ptcmysore.gov.in/ipswebtracking/.

For queries regarding Customs clearance the Postal Appraising Department should be contacted.

how to start e-commerce exports from India