What Happened
- The Directorate General of Foreign Trade (DGFT) has removed the per-consignment value cap on exports made through courier services, effective April 1, 2026
- The revised text of Para 9.05 of the Foreign Trade Policy (FTP) 2023 now states: "there shall be no value limit prescribed per consignment for exports through courier service"
- Previously, the limit was Rs 10 lakh (Rs 10,00,000) per consignment — itself doubled from Rs 5 lakh in FTP 2023
- The change was announced in the Union Budget 2026-27 presented on February 1, 2026
- The removal is expected to directly benefit e-commerce exporters, MSMEs, artisans, and small manufacturers exporting higher-value goods
Static Topic Bridges
Foreign Trade Policy 2023 — Framework and Courier Export Provisions
India's Foreign Trade Policy (FTP) 2023 was notified by the Ministry of Commerce and Industry on April 1, 2023, replacing FTP 2015-20 (which had been extended multiple times). Unlike previous FTPs with fixed five-year tenures, FTP 2023 is a rolling document with no fixed end date — it will be updated as needed. The policy is administered by the Directorate General of Foreign Trade (DGFT) under the Foreign Trade (Development and Regulation) Act, 1992. Para 9.05 of FTP 2023 governs the procedure for exports through courier services and postal channels. The FTP doubled the courier export value cap from Rs 5 lakh to Rs 10 lakh when it was introduced in 2023; the Budget 2026-27 has now removed the ceiling entirely.
- FTP 2023 notified: April 1, 2023 (rolling policy, no fixed end date)
- Governing statute: Foreign Trade (Development and Regulation) Act, 1992
- Nodal body: DGFT, Ministry of Commerce and Industry
- Para 9.05: Governs courier and postal exports; prior limit was Rs 10 lakh/consignment
- New rule (from April 1, 2026): No value limit per consignment
- FTP 2023 also introduced: Dak Ghar Niryat Kendras (postal export hubs) for artisans/MSMEs
Connection to this news: The removal of the cap directly implements a Budget 2026-27 announcement. Combined with integration of courier and postal exports into ICEGATE (customs digital platform), exporters can now ship high-value goods via courier and claim export incentive benefits seamlessly.
EPCG and Export Incentive Schemes — Link to Courier Exports
India's export promotion framework includes several schemes that are now more accessible to courier exporters. The Export Promotion Capital Goods (EPCG) scheme allows zero-duty import of capital goods for export production, against an obligation to export six times the duty saved over six years. The RoDTEP (Remission of Duties and Taxes on Exported Products) scheme refunds embedded taxes and levies not rebated through other mechanisms — replacing the earlier MEIS (Merchandise Exports from India Scheme) after WTO compliance issues. Integration of courier exports into ICEGATE means that small exporters and MSMEs using courier channels can now apply for RoDTEP and other benefits that were previously accessible only through sea/air bill-of-lading exports.
- EPCG scheme: Zero-duty capital goods import; 6x duty-saved export obligation over 6 years
- RoDTEP: Tax remission scheme (replaced MEIS from January 2021); WTO-compliant
- ICEGATE: India Customs Electronic Gateway — handles all export documentation electronically
- Courier exports into ICEGATE: Enables export benefit claims for courier-mode shipments
- E-commerce exports: US, EU, UK main destinations; India's e-commerce export target is $200+ billion by 2030
- MSMEs: Account for ~45% of India's total exports; biggest beneficiary of courier liberalisation
Connection to this news: Removing the value cap transforms the courier channel from a last-mile option for small trinkets into a viable export route for gems, electronics, textiles, and other higher-value goods — democratising export access for businesses that lack sea-freight volume but can ship high-value consignments.
DGFT — Role and Trade Facilitation Mandate
The Directorate General of Foreign Trade (DGFT) functions under the Ministry of Commerce and Industry and is the principal authority for formulating and implementing India's export-import policy. It issues Importer-Exporter Code (IEC) numbers (mandatory for all exporters), administers the FTP including all export incentive schemes, and is responsible for trade facilitation measures. DGFT has a network of regional offices across India. Under FTP 2023, the DGFT adopted a technology-first approach: all applications (IEC, licences, scheme benefits) are now processed through the DGFT portal with reduced human interface.
- DGFT statutory basis: Foreign Trade (Development and Regulation) Act, 1992
- Importer-Exporter Code (IEC): Mandatory 10-digit code for all exporters/importers
- FTP 2023 philosophy: Shift from incentives to tax remission; technology-driven facilitation
- Dak Ghar Niryat Kendras: Postal export facilitation centres for MSMEs and artisans in hinterland
- Export Promotion Councils (EPCs): Sector-specific bodies under DGFT to promote exports
Connection to this news: This notification is a DGFT trade notice amending FTP 2023, exercising powers under the Foreign Trade Act. It exemplifies DGFT's evolving role from a licencing body to an active facilitator — removing regulatory ceilings to enable market-driven export growth.
Key Facts & Data
- Old limit: Rs 10 lakh per consignment via courier (Rs 5 lakh under earlier FTP)
- New limit (from April 1, 2026): No value ceiling — unlimited per consignment
- Governing paragraph: Para 9.05, FTP 2023
- Announced in: Union Budget 2026-27 (February 1, 2026)
- Implementing body: DGFT (Ministry of Commerce and Industry)
- Statute: Foreign Trade (Development and Regulation) Act, 1992
- FTP 2023: Rolling policy, notified April 1, 2023 (no fixed end date)
- Key beneficiaries: E-commerce exporters, MSMEs, artisans, gems & jewellery, electronics
- Customs integration: Courier exports now processed through ICEGATE for incentive claims