DGFT Rules: New Guidelines for e-Commerce Export Hubs in India 2024
DGFT introduces framework for e-Commerce Export Hubs (ECEH) to streamline SME global trade. Learn about regulatory changes under Foreign Trade Policy 2023.
The Directorate General of Foreign Trade (DGFT) has introduced a transformative framework for establishing e-Commerce Export Hubs (ECEH) across India. This initiative, part of the Foreign Trade Policy 2023 roadmap, aims to provide a centralized 'plug-and-play' ecosystem for SME exporters. These hubs are designed to house logistics, warehousing, customs clearance, and return processing facilities under one roof.
According to DGFT Trade Notice No. 15/2024-25, the government has invited proposals from private entities and state agencies to set up these hubs. The ECEH model is intended to reduce the high cost of cross-border logistics that often hinders small manufacturers. By consolidating shipments, SMEs can benefit from bulk shipping rates and faster clearance cycles.
What this means for exporters
Exporters operating within these hubs will benefit from simplified customs procedures and expedited VAT/GST refunds. Furthermore, the hubs will facilitate easier management of 're-imports'—a common challenge in e-commerce where returned goods often face complex duty structures. For SMEs, this represents a significant shift toward a more predictable and cost-effective global supply chain, allowing for better integration with international marketplaces like Amazon and eBay.