India is among the fastest growing markets for e-commerce in the world. It has submitted a formal document to the WTO in December 2017 opposing any negotiation on trade.
In the year 2020, exporters are looking forward to the government releasing the new Foreign Trade Policy (FTP) 2020-25.
The existing Foreign Trade Policy, introduced in 2015, is valid till 31st March, 2020. Exporters hope the new policy will solve some of the problems of the current one.
The past decade has seen growth in e-commerce trade.
Therefore, it is filled by development of different business models like liberalization of services. Such as telecommunications; technological developments; penetration of broadband, Internet and smartphones; also government support for digitization.
Export of goods through courier or foreign post offices using E-commerce.
Trade Rules for E-Commerce
1. MEIS
Exports of goods through courier or foreign post office using ecommerce. As notified in Appendix 3C, of FOB value up-to Rs.25000 per consignment shall be entitled for rewards under MEIS.
2. Value of exports
If the value of exports using e-commerce platform is more than Rs.25000 per consignment then MEIS reward would be limited to FOB value of Rs.25000 only.
3.Export of goods
Such goods can be exported in manual mode through Foreign Post Offices at New Delhi, Mumbai and Chennai.
4.Courier Regulations
Export of such goods under Courier Regulations shall be allowed manually on pilot basis through Airports at Delhi, Mumbai and Chennai.
5.Amendments
Appropriate amendments in regulations to be made by Department of Revenue. Department of Revenue shall fast track the implementation of EDI mode at courier terminals.
Cross-Border E-Commerce
- Cross-border E-commerce is the international e-commerce. It is literally “selling across a border using e-commerce“, as opposed to domestic e-commerce transactions.
- Business to business (B2B) is where e-commerce transactions are made between businesses, where a supplier sells in bulk.
- Business to consumer (B2C) is where a business sells its product directly to a customer. Either directly from a company website or an online marketplace.
Entitlement under MEIS
- Exports of notified goods/products with ITC[HS] code, to notified markets as listed in Appendix 3B, shall be rewarded under MEIS.
- Appendix 3B also lists the rate(s) of rewards on various notified products [ITC (HS) code wise].
- The basis of reward calculation would be on realized FOB value of exports in free foreign exchange.
- Or on FOB value of exports as given in the Shipping Bills in freely convertible foreign currencies, whichever is less, unless otherwise specified.
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