Government Extends Export Incentives to Postal Shipments to Boost MSME Exports

The Ministry of Finance recently shared a press release on January 16, 2026, regarding the extension of export incentives to postal shipments.

The Indian government has made it easier and more profitable for small sellers and online businesses in India to export goods abroad using the postal system.

From January 15, 2026, exporters who send products through post and file details electronically will also get benefits under the Duty Drawback, Remission of Duties and Taxes on Exported Products (RoDTEP) and Rebate of State and Central Taxes and Levies (RoSCTL) scheme.

The main objective of this action is to make it fair and easier for small businesses to sell their products abroad using the post office. It creates a supportive system for online cross-border sales, especially helping MSMEs.

Because of this action, small exporters, even in small towns and remote areas, will be able to compete better with big companies, reach international customers, and send goods more smoothly through the postal system.

To put these benefits into practice, CBIC has approved changes to the Postal Export (Electronic Declaration and Processing) Regulations, 2022. These changes allow exporters to claim Duty Drawback, RoDTEP, and RoSCTL benefits for goods exported through the postal route.

Accordingly, Notification No. 07/2026-Customs (N.T.) has been issued to amend the regulations, and Circular No. 01/2026-Customs has been issued to explain the changes and provide details on how they will be implemented. The notifications and the circular were issued on January 15, 2026.

Over the last few years, the government has taken many actions to make it easier for Indian businesses to sell their products online to customers in other countries.

In 2023, the government included a special section in its Foreign Trade Policy called “Promoting Cross-Border Trade in the Digital Economy”. This initiative was launched to make shipping and paperwork simpler by using Courier and postal services, E-commerce export hubs, Dak Niryat Kendras and Other systems. Apart from this government introduced many other initiatives to promote e-commerce exports.

The extension of export incentives to postal shipments supports growth and encourages more people to take part in exports. It also strengthens India’s position in the fast-growing global e-commerce market.