Synopsis: A The Central Board of Indirect Taxes and Customs has extended key export incentives—Duty Drawback, RoDTEP and RoSCTL—to goods shipped via the postal route from January 15, a move expected to significantly improve competitiveness of MSME and e-commerce exporters, particularly from smaller towns.

 

New Delhi: In a major push to cross-border e-commerce and small exporters, the Central Board of Indirect Taxes and Customs (CBIC) has extended export incentives 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 channel, effective January 15, 2026.

CBIC extends duty benefits to postal exports, boosts MSME e-commerce shipments
Source: Internet

The decision brings postal exports at par with other shipping modes and is expected to provide a significant boost to micro, small and medium enterprises (MSMEs), especially those operating from Tier-2 and Tier-3 cities and remote regions. The move is also aimed at strengthening India’s rapidly growing cross-border e-commerce ecosystem.

To operationalise the incentives, CBIC has amended the Postal Export (Electronic Declaration and Processing) Regulations, 2022, enabling exporters to electronically claim the benefits for goods shipped through post. Notification No. 07/2026–Customs (N.T.) and Circular No. 01/2026–Customs, issued on January 15, lay down the revised procedures and operational framework.

The move builds on a series of reforms undertaken in recent years to digitise and simplify postal and courier exports. India currently has 28 Foreign Post Offices notified under the Customs Act, while end-to-end electronic processing for postal exports was introduced in 2022. Automation of IGST refunds for postal exports was rolled out in September 2024.

CBIC has also been promoting postal exports through its ‘Hub and Spoke’ model launched in collaboration with the Department of Posts. Under this initiative, over 1,000 Dak Niryat Kendras have been set up across the country to facilitate aggregation and processing of export parcels, lowering logistics barriers for small exporters.

The extension of export incentives to postal shipments is seen as a critical step in reducing costs, improving ease of doing business and broadening participation in exports, as India seeks to scale up its presence in the global digital trade and e-commerce marketplace.

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