Limit on value of online export orders may be raised

The government is planning to raise four-fold a key cap that is keeping exporters from availing themselves of benefits given to exports via online platform. The commerce ministry has proposed to raise the cap of each export order placed online and dispatched through courier or postal mode to Rs 1 lakh from the existing Rs 25,000.

The proposal has been made in the wake of exporters finding the present cap too low, which is restricting them from getting duty benefits on imports of inputs and goods. “We have proposed to increase the limit to Rs 1 lakh because exporters were not getting enough benefits,” said an official privy to the development.

The value of items shipped through couriers is often not captured in export data because they are categorised as samples or gifts. Exporters call them samples because under the normal export route they will have to file shipping bills and be subject to checks by custom officials, which is cumbersome, especially for small exporters with low-value shipments.

The Directorate General of Foreign Trade has defined ‘e-commerce’ as the buying and selling of goods and services, including digital products, conducted over digital and electronic networks without any reference to amount. The commerce ministry might announce the revision in the cap in the mid-term review of the policy which is likely to be released on June 30, the official said.

The Foreign Trade Policy 2015-2020 offers incentives for goods falling in the category of handloom products, books and periodicals, leather footwear, toys and customised fashion garments, having free-on-board value up to Rs 25,000 under the Merchandise Export from India Scheme. These goods should be hosted on a website and dispatched through courier or postal mode to qualify for incentives. However, the finance ministry is said to have raised concerns on the revised limit citing lack of adequate system to track such transactions.