The e-commerce export hubs (ECEH) that the government has proposed to set up will be open to all companies including existing large e-commerce players like Amazon, Flipkart and ShipRocket. The facility will be open to the existing players, who have the capacity to run such an operation involving sourcing, warehousing and exporting, a senior official said.
For further feedback on the framework of these hubs a meeting with the industry representatives who might be interested in setting up these hubs has been called by the ministry of commerce and industry which will be held in the next 4-5 days. Apart from e-commerce players, global logistics companies like DHL can also be the candidates, the official said.
“Any aggregator or firm who has the potential to aggregate fast moving e-commerce goods such as home textiles, handloom, handicrafts, Ayush and wellness products, gems and jewellery and apparels and which can be stored in warehouses and delivered on demand can set up these hubs,” he added.
The liberal approach comes close on the heels of recent statement by commerce and industry minister Piyush Goyal expressing concerns over issues legality and alleged predatory pricing by large e-commerce players; he later clarified that he had no intention to denounce them, and added that sector indeed brought about tremendous benefits to the economy.
Last week the government invited proposals from companies to set up E-commerce Export Hubs (ECEH) in the country that will be first launched on a pilot basis. The experience of pilot launch will then be used to frame notifications and circulars for these hubs.
These hubs will essentially work as warehouses where goods sourced locally will be stored and then shipped out based on the orders. At the time of leaving the warehouse the goods will be checked by the customs and sealed. As these goods will be customs checked and sealed they will be ready for direct loading on flights.
According to the draft modalities for setting up these export hubs. ECEH shall have two distinct segregated areas. First will be the fulfilment area for packing, labelling, storing and other activities till a buyer is found. The second area will be a customs station where the goods will be customs cleared after the buyer is found, ready for dispatch.
ECEH will function to achieve agglomeration benefits for e-commerce exporters like storage, packaging, labelling, certification and testing and other common facilities for the purpose of exports.
In the Foreign Trade Policy of 2023 the intent and roadmap for setting up e-commerce export hubs was outlined. They have been proposed as designated areas, which would act as a centre for favourable business infrastructure and facilities for cross border e-commerce activities.
The major objectives of ECEH are to provide for predictability and shortest possible turnaround time for e-commerce exports, easy re-import for e-commerce returns or rejects, and bringing various cross-border stakeholders under one roof. The handling of product returns and flexibility in payment realisation essential for e-commerce exports would require a change in regulations by the customs department and Reserve Bank of India (RBI).
These hubs are likely to come up near airports and ports. The hubs would be set up by the industry and would not involve any financial commitment from the government. The FTP had hiked the consignment-wise cap on e-commerce exports through courier to Rs 10 lakh from Rs 5 lakh.
As per estimates, e-commerce exports potential for India is in the range of $200-300 billion by 2030. Global e-commerce exports are expected to touch $2 trillion in 2030 from $800 billion now. India’s exports through this medium is only about $ 5 billion as compared to China’s $ 250 billion annually.
China, which is a leader in e-commerce exports, is also a pioneer in export hubs for e-commerce. China’s exports through this route are 6.4% of its total merchandise exports in 2023 while for India this figure stands at 1.14%.
From: financialexpress
Financial News
