?Government Extends Export Incentives to Postal Shipments to Support MSMEs?
The government has extended export incentives to goods sent through postal services from January 15, aiming to boost e-commerce and the MSME sector.
The Central Board of Indirect Taxes and Customs (CBIC) announced that exporters using the postal mode can now avail benefits under the Duty Drawback, RoDTEP, and RoSCTL schemes through an electronic system.
According to the Finance Ministry, this move will improve the competitiveness of MSME exporters, especially those in smaller towns and remote areas, and significantly promote postal exports. The initiative also ensures a level playing field for exporters using postal channels and supports the growth of cross-border e-commerce.
India currently has 28 Foreign Post Offices notified under the Customs Act, 1962. Over the years, CBIC has introduced several reforms to strengthen postal and courier-based trade.
Key measures include the Postal Export Regulations, 2022, which enabled fully electronic processing of export declarations, and the Postal Import Regulations, 2025, for streamlined import processing. Automation of IGST refunds for postal exports was implemented in September 2024.
To further promote e-commerce exports, CBIC and the Department of Posts launched a ‘Hub and Spoke’ model in December 2022. Under this system, more than 1,000 Dak Niryat Kendras across India help MSMEs and small exporters with booking and processing export parcels.
Overall, these policy reforms and digital initiatives are designed to strengthen India’s e-commerce export ecosystem and support MSME growth.
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