CBIC extends export incentives to postal shipments, boosting MSMEs, e-com exports

In a major boost to India’s e-commerce and MSME exports, the Central Board of Indirect Taxes and Customs (CBIC) has extended export-related benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP), and Rebate of State and Central Taxes and Levies (RoSCTL) schemes to exports made through the postal mode in electronic form.

The landmark decision aims to provide a level playing field for exporters using the postal channel and to foster a more inclusive ecosystem for cross-border e-commerce.

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The initiative is expected to significantly enhance the competitiveness of MSME exporters, particularly those based in smaller towns and remote areas, while giving a major fillip to postal exports.

To operationalise the extended benefits, CBIC has approved amendments to the Postal Export (Electronic Declaration and Processing) Regulations, 2022.

Accordingly, exporters will now be able to claim Duty Drawback, RoDTEP, and RoSCTL benefits for goods exported through the postal route. In this regard, CBIC has issued a Notification, amending the regulations, along with a Circular detailing the amendments and operational modalities.

Both were notified on January 15, 2026.
Over the past few years, the Government of India has rolled out a series of policy initiatives, digital reforms, and regulatory measures to strengthen the country’s e-commerce export ecosystem.

A dedicated chapter titled “Promoting Cross-Border Trade in the Digital Economy” was introduced in the Foreign Trade Policy 2023, providing a comprehensive framework to facilitate cross-border e-commerce through courier and postal modes, e-commerce export hubs, Dak Niryat Kendras, and other enabling mechanisms.

India currently has 28 Foreign Post Offices (FPOs) notified under Section 7 of the Customs Act, 1962. CBIC has taken multiple steps to strengthen cross-border trade through postal and courier channels. The Postal Export (Electronic Declaration and Processing) Regulations, 2022, enabled end-to-end electronic processing of export declarations for postal exports, while the Postal Import Regulations, 2025, facilitated electronic processing of postal imports. Automation of IGST refunds for postal exports was successfully implemented in September 2024.

Further promoting e-commerce exports, the CBIC, in collaboration with the Department of Posts, launched the ‘Hub and Spoke’ model in December 2022, leveraging India Post’s extensive nationwide network. Under this model, over 1,000 Dak Niryat Kendras (DNKs) have been designated across the country to facilitate booking, aggregation, and processing of export parcels, particularly benefiting MSMEs and small exporters.

The extension of export incentives to postal shipments marks another significant milestone in the government’s efforts to simplify procedures, reduce transaction costs, and promote inclusive export growth, strengthening India’s position in the rapidly evolving global e-commerce landscape.