New Delhi | January 17,2026 | SKY LINK TIMES
Govt Extends Export Incentives to Postal Shipments for MSMEs:
In a major policy move aimed at strengthening India’s MSME and cross-border e-commerce ecosystem, the government has extended key export incentives to goods shipped through the postal route. The decision, effective January 15, is expected to significantly improve export competitiveness for small businesses, especially those operating from smaller towns and remote regions.
The Central Board of Indirect Taxes and Customs (CBIC) announced that exporters using the postal mode will now be eligible for benefits under Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) schemes.
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Level Playing Field for Postal Exporters
According to the Finance Ministry, the extension of incentives ensures parity between exporters using traditional shipping channels and those relying on India Post.
“This landmark measure aims to provide a level playing field for exporters using the postal channel and create a more inclusive ecosystem for cross-border e-commerce,” the ministry said in a statement.
The move is expected to particularly benefit MSMEs, artisans, homegrown brands and small exporters, many of whom depend on postal services due to cost efficiency and wide geographical reach.
Strengthening India’s E-Commerce Export Ecosystem
India currently has 28 Foreign Post Offices (FPOs) notified under Section 7 of the Customs Act, 1962, which facilitate international postal exports. Over the past few years, CBIC has introduced several reforms to modernise and digitise postal trade operations.
Key initiatives include:
• Postal Export (Electronic Declaration and Processing) Regulations, 2022, enabling end-to-end digital processing of export declarations.
• Postal Import Regulations, 2025, notified to streamline electronic import procedures.
• Automation of IGST refunds for postal exports, implemented in September 2024.
These measures have significantly reduced paperwork, turnaround time and compliance burdens for small exporters.
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Dak Niryat Kendras: Taking Exports to the Grassroots
To further boost e-commerce exports, CBIC and the Department of Posts launched the ‘Hub and Spoke’ model in December 2022. Under this initiative, more than 1,000 Dak Niryat Kendras (DNKs) have been set up across the country.
These centres facilitate:
• Booking and aggregation of export parcels
• Customs clearance support
• End-to-end export processing
The model has proven particularly beneficial for MSMEs, women entrepreneurs and first-time exporters.
A Strategic Push for MSME Growth
The extension of export incentives to postal shipments aligns with the government’s broader strategy to promote MSME-led export growth, digital trade and inclusive economic development. By lowering logistical and tax-related barriers, the policy is expected to unlock new export opportunities and enhance India’s global trade footprint.
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