A comprehensive operational guide for MSMEs expanding into global markets, covering market research, regulatory and DGFT compliance, general documentation, cataloguing, logistics, payment settlements, RBI realization rules, IGST refunds, returns processing, platform onboarding costs, and social e-commerce channels.

E-Commerce Exports Checklist for MSMEs

Based on the DGFT E-Commerce Exports Handbook for MSMEs

• Analyse foreign demand for your product and identify the market segments and age groups best suited to it.

•  Browse e-commerce platforms in your target country to check the demand and pricing of similar products.

•  Attend Trade Fairs, Buyer-Seller Meets, and Reverse Buyer-Seller Meets, both in India and abroad, to explore demand.

•  Consider focusing on sectors where India has a comparative advantage, such as textiles and handloom, leather goods, handicrafts and home decor, beauty and personal care, semi-precious jewellery, Ayush and herbal products, spices and food products, tea and coffee, or engineering goods, since these require less marketing effort and are already well recognised abroad.

•  Research overall demand split by age and region, cultural preferences of buyers, and seasonal trends in the target country.

•  Identify key regions with a strong Indian diaspora, such as the USA, Canada, the UK, the UAE, Saudi Arabia, and Australia, as potential markets for India-centred products.

•  Plan sales around major global and Indian sales events and festivals, such as Diwali, Black Friday, Cyber Monday, Single's Day, Christmas, and Eid, to align with peak demand periods.

•  Choose a clear pricing strategy before entering any market, whether cost-based, penetration-based, competitor-based, or another approach suited to your product and market.

•  Identify the correct Indian Tariff Classification, known as ITC(HS), for your product by searching the Customs (CBIC) or DGFT website.

•  Confirm whether your product falls under the 'Free', 'Restricted', or 'Prohibited' category under the Export Policy (Schedule-II) of ITC(HS) 2022, since non-compliance can result in penalties in India or issues at the destination country.

•  If your product is 'Restricted', obtain the required Export Authorisation and follow the specified procedures and conditions before shipping.

•  Check whether your product requires Partner Government Agency (PGA) certification, for example CDSCO certification for pharmaceutical exports or APEDA certification for organic exports.

•  Carry out product-specific research and due diligence, since documentary and permission requirements can vary significantly between products.

•  Establish a firm of an appropriate type, such as a proprietorship, partnership, LLP, limited company, trust, or society, and obtain a PAN for that firm.

•  Register for GST and obtain a GST Identification Number (GSTIN) through the GST portal.

•  Apply for an Importer-Exporter Code (IEC) through the DGFT website, since no exports or imports may be effected without mentioning an IEC.

•  Open an Indian bank account in the name of your firm, and note the Authorised Dealer (AD) code of the concerned bank branch.

•  Write simple, concise, and SEO-friendly product descriptions that include all important features and relevant keywords.

•  Use sharp, clear product images, and consider features such as a 360-degree product view where possible.

•  Design a functional and visually pleasing seller page layout with minimal navigation and grouped, serialised product listings.

•  Prepare FAQs, whether chat-based or pre-documented, covering aspects of the product not already addressed in the description.

•  Consider using the E-Commerce platform's own paid cataloguing service, or a free online cataloguing tool or template, to build your catalogue.

•  Pack and close every parcel with due regard to the weight and nature of its contents, the mode of transport, and the length of the journey.

•  Ensure the packing protects the contents so that they cannot be damaged during repeated handling.

•  Package items so that it is not possible to tamper with the contents without leaving a visible trace of interference.

•  Protect the parcel against major changes in climate, temperature, atmospheric pressure, or conveyance during transit.

•  Pack items so as not to endanger the health of handling officials, and to avoid injury or damage to other parcels and postal equipment.

•  Leave sufficient space on the packing or wrapping for service instructions and for affixing stamps and labels.

•  Follow special packing conditions for items such as precious metals, glass, fragile objects, liquids, ointments, and resin.

•  Pay attention to the unboxing experience for the customer, in addition to meeting the mandatory packaging requirements.

•  Evaluate the four main types of cross-border e-commerce logistics providers: E-Commerce Affiliate fulfilment models, International Logistics Service Providers, Postal Service, and 4PL Logistics Providers.

•  Compare weight restrictions, countries covered, compensation limits, and available discounts across services such as International Speed Post (EMS), International Registered Small Packet, International Air Parcels, and the International Tracked Packet Service.

•  For postal exports, register with Customs authorities using your IEC and your bank's AD code.

•  Choose the correct Postal Bill of Export (PBE) form: PBE I for e-commerce exports, or PBE II for other exports.

•  Complete the correct customs declaration form based on the value of your articles: CN22 for articles below SDR 300 in value, or CN23 for articles valued at SDR 300 or above.

•  Use a Harmonized Label for articles sent through the International Tracked Packet Service.

•  Drop your shipment at the nearest Dak Niryat Kendra or Foreign Post Office for acknowledgment and a tracking number.

•  Present the PBE consignment to Customs for review and obtain a 'Let Export Order'; Customs will retain the original PBE form and return the duplicate to you.

•  For courier exports, choose the correct Courier Shipping Bill (CSB) form: CSB-4 for exports under Rs. 50,000 that are samples or of non-commercial value, or CSB-5 for commercial shipments under Rs. 10,00,000.

•  Gather the necessary documents for courier exports, including GST details, your IEC, your AD code, and the HSN code of the product.

•  Prepare a detailed invoice with itemised pricing and relevant information, and check eligibility for any applicable Government of India export benefit schemes.

•  Prepare complete shipment details, including product description, quantity, value, and recipient information, before contacting a courier provider.

•  Contact an authorised courier service provider listed on the Express Cargo Clearance System (ECCS) platform and share your shipment details, including product information, GST, IEC, HSN code, and AD code.

•  File the Courier Shipping Bill through the Express Cargo Clearance System (ECCS) before the courier provider ships your goods.

•  Choose your payment method from among an e-commerce platform's integrated payment service, an online payment gateway service provider, or an international money transfer service.

•  Compare exchange rates offered by different providers against the standard mid-market rate before choosing a service.

•  Check the transfer fees charged by each provider, whether a fixed flat rate or a percentage of the transfer amount.

•  Confirm transfer speed and any extra cost for express delivery if quick settlement is required.

•  Check the transfer limits of each service and choose the one best suited to your typical transaction size.

•  Look for available discounts, such as free transfers on sign-up or reduced fees for large transfers.

•  Use only payment service providers that comply with RBI regulations and the laws of the buyer's country, to ensure safe transfers.

•  Follow the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2016, and applicable RBI Master Circulars as amended from time to time.

•  Note that Online Payment Gateway Service Providers (OPGSPs) may be used to process export-related receipts only for exports of goods valued up to $10,000.

•  Realise and repatriate the full value of exported goods to India within 9 months from the date of export.

•  For goods exported to a warehouse established outside India, realise the proceeds within 15 months from the date of shipment.

•  Note that your AD Category-I bank can extend the payment realisation period by up to 6 months at a time, regardless of invoice value, subject to certain conditions.

•  If export dues cannot be realised, consider a self-write-off (up to 5% of the previous calendar year's export proceeds for exporters, or up to 10% for Status Holder Exporters) or approach your AD bank, which can also write off unrealised export bills without limit if satisfied with the supporting documentation.

•  Ensure your bank maintains your Export Bills Register aligned with the Export Data Processing and Monitoring System (EDPMS), on a financial-year basis running from April to March; note that courier exports are registered under EDPMS, while postal exports currently are not.

•  Obtain the Electronic Bank Realisation Certificate (e-BRC) from your bank as required under the Foreign Trade Policy.

•  If seeking to open or hire a warehouse abroad, confirm you meet the AD Category-I Bank conditions: export outstanding not exceeding 5% of exports made during the previous financial year, and a minimum export turnover of USD 100,000 during the last financial year.

•  Ensure the shipping bill accurately reflects all required information, such as the invoice number and port code.

•  File the GSTR-1 form on the GST portal, and complete Table 6A with export consignment details such as the invoice number and shipping bill details.

•  Note that for postal exports, the Department of Posts handles the shipping bill filing on your behalf, and the refund request is uploaded by the Customs officer.

•  Note that for courier exports, the Authorised Courier is responsible for filing the shipping bill, and the IGST refund may be electronically linked with the Courier Shipping Bills through ECCS and ICEGATE.

•  Always check the GST portal and relevant authorities for the most current guidance on filing IGST refunds.

•  Confirm that the return transaction for a courier export is initiated by the same consignee to whom the item was exported, under the corresponding Courier Shipping Bill (CSB-V) and on the same e-commerce platform.

•  Ensure the authorised courier files the Courier Bill of Entry for re-import under the same Importer-Exporter Code (IEC) and at the same international courier terminal where the original export was filed.

•  Upload the image of the return confirmation page from the e-commerce platform onto the Express Cargo Clearance System (ECCS) when filing the Courier Bill of Entry for re-import.

•  State the reason for re-import clearly in the Courier Bill of Entry, and ensure the returned item is re-imported along with its original packing.

•  Be aware that exemption from import duty on re-import is governed by Customs Notification 45/2017 dated 30 June 2017, and that specific courier re-import regulations apply to jewellery, though these do not provide a specific exemption from import duty.

•  Account for referral fees, charged as a percentage of the sales made on any product.

•  Account for closing fees, charged in addition to the referral fee, based on your product price.

•  Account for shipping fees incurred for delivering an order through any channel.

•  Account for fees for using a platform's own logistics services to pick, pack, deliver, and store your orders.

•  Account for cataloguing fees incurred for using an e-commerce platform's cataloguing services.

•  Set up a business account and complete your business profile, including contact details, on platforms such as Facebook, WhatsApp Business, Instagram, or Telegram.

•  Get approved by complying with the platform's trustworthiness policies, and verify your domain to enhance authenticity and reach.

•  List and catalogue your products using the platform's catalogue manager tool, adding images, titles, prices, descriptions, and other relevant details.

•  Set up a checkout account to enable buyers to purchase directly from your listings.

•  Post quality content regularly to build reach and visibility on social media.