Foreign trade policy may include chapter on e-commerce business

The policy is likely to boost e-commerce exports, which no longer get any special incentives. The move aims to encourage small entities to tap overseas markets for growth and accelerate exports of Geographical Indication (GI) products and the ‘One District, One Product (ODOP)’ initiative.

A commerce ministry spokesperson said in response to one, “A separate chapter on e-commerce is being considered to facilitate in terms of speedy clearances etc. On various aspects to be included with regard to e-commerce. The details are being worked out.” Question.

The policy, initially scheduled on 1 April 2020, was postponed to 31 March 2021 and further to 30 September, 1 April 2022 and finally 30 September due to the pandemic.

Recently, India’s apex export body, Federation of Indian Export Organization (FIEO) requested the commerce ministry to provide incentives to bring e-commerce at par with traditional merchandise exports in the upcoming policy. Mint has reviewed the copy of FIEO paper submitted to the ministry.

“We are collecting inputs from the industry, and we want to encourage e-commerce exports in line with the government’s promotion of digitisation. Initiatives like One District One Product can gain momentum if e-commerce is encouraged through trade facilitation measures. We are looking into it,” said a government official on condition of anonymity.

FIEO said e-commerce retail exports, which have the potential to have a multiplier effect of 10 times in the next three years, need to provide at least the same benefits available to the trading sector. FIEO said at present export benefits are either unavailable or the procedure is not defined, depriving e-commerce exporters of the benefits of goods and services tax regime, exemption of state and central taxes and levy scheme, and export products. on duty and tax exemption scheme, among others.

“The need of the hour is to give e-commerce the same treatment that is available to traditional merchandise shipments. A separate chapter in the FTP should list all export benefits available for e-commerce, which should be at par with traditional exports,” said Ajay Sahai, CEO and DG, FIEO.

Incidentally, while the Reserve Bank of India allows online payments for e-commerce up to $10,000, courier shipping bills and export bills prohibit it. 5 lakhs.

“Such discrepancy should be rectified by adopting uniform limits for all processes and procedures… E-commerce needs to align all limits of shipments with a common value. How can a younger player be expected to be aware of these various limitations?” said Sahai.

In 2018, the Department of Commerce raised the price limit for exports via courier service or post. to 5 lakh 25,000 to facilitate shipment through couriers by first e-commerce companies.

FTP is a set of guidelines and directions established by the Directorate General of Foreign Trade in matters relating to import and export of goods into India. FIEO has also suggested setting up of an integrated park for cross-border e-commerce, which will cover a wide range of sectors such as banks, fintech firms, foreign post offices, courier terminals, logistics firms, warehouses, customs collection and tax refunds under one umbrella. facilities should be provided. ,

Arpita Mukherjee, an economist at ICRIER, described the move to focus on e-commerce as an excellent initiative. “If the chapter covers measures such as support for training to help small and medium enterprises engage in e-commerce platforms, it will help them integrate into global value chains and increase exports. The two major barriers faced by SMEs in accessing the global market are digital inclusion and digital financial inclusion. Our exporters will also benefit from quick approvals through express delivery.”

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