Ease time limits for bringing in e-commerce export proceeds: Report

India should deploy some of the learning from China’s model for export promotion through e-commerce as it plans to give a filip to the fast-growing sector, a new report said. The country should have a framework for setting up e-commerce hubs and consider other relaxations in payment regulations, it added.

The report, prepared by EY, in association with Assocham, recommend that the time limit for realisation export proceeds should be liberalised. China puts no time limit realising payments against e-commerce exports while in India, Reserve Bank of India (RBI) guidelines mandate foreign exchange receipt within nine months of shipment, creating challenges for e-commerce operators, as some shipments are sold over 12 to 18 months, making the stipulated reconciliation time frame not feasible.