DGFT Removes Rs 10 Lakh Cap on Courier Exports: What It Means for MSMEs

The Directorate General of Foreign Trade has removed the Rs 10 lakh per-consignment value cap on exports made through courier services and foreign post offices. Notification No. 67/2025-26, dated March 27, 2026, amends Paragraph 9.05 of the Foreign Trade Policy (FTP) 2023 and takes effect from April 1, 2026. The change eliminates a structural bottleneck that forced exporters shipping higher-value goods through courier to switch to traditional cargo channels, a process that involved significantly higher logistics costs and longer transit times. The notification was signed by Lav Agarwal, Director General of Foreign Trade.

The Previous Regime and Its Limitations

Under the earlier framework, Paragraph 9.05 of the FTP 2023 capped the value of goods that could be exported via courier at Rs 10 lakh per consignment. This limit applied to all exporters, regardless of the nature of goods or the size of the exporting entity. In practice, the cap disproportionately affected MSMEs, artisans, and e-commerce exporters who relied on courier channels for speed and cost efficiency. High-value consignments exceeding the cap had to be routed through formal cargo channels, which required engagement with customs house agents, longer documentation processes, and higher freight costs. For small exporters shipping goods such as jewellery, handloom products, or specialised electronics, this created a compliance and logistics barrier that limited their ability to compete in international markets.

What the Amendment Changes

From April 1, 2026, there is no prescribed value limit per consignment for exports through registered courier services and foreign post offices. The amendment does not create a new higher cap; it removes the cap entirely. However, the exportability of items continues to be governed by the FTP and Export Policy in the ITC(HS) classification. This means that restricted and prohibited items remain subject to existing controls regardless of the courier channel. The regulatory safeguards around documentation, customs declarations, and compliance with export control laws remain fully intact. The change is limited to the removal of the per-consignment value threshold.

Impact on E-Commerce and Cross-Border Trade

The removal of the cap is expected to benefit India's growing cross-border e-commerce sector significantly. E-commerce exports, which rely heavily on courier and express delivery networks for speed-to-market, were constrained by the Rs 10 lakh threshold. Sellers on platforms catering to international buyers can now ship higher-value consignments without rerouting through traditional cargo. For the logistics industry, this opens up a larger addressable volume of export shipments through courier networks. Express delivery companies, authorised courier operators, and postal services stand to gain from increased throughput. The reform aligns with the government's broader objective of reaching USD 2 trillion in exports by 2030, with e-commerce and MSME exports identified as key growth drivers.

Practical Takeaways

MSME exporters and e-commerce sellers should review their logistics arrangements to take advantage of the courier channel for higher-value consignments that previously had to be routed through cargo. Exporters should ensure they continue to comply with all applicable FTP conditions, customs documentation requirements, and ITC(HS) classification rules, as the removal of the value cap does not affect these regulatory requirements. Logistics companies and authorised courier operators should update their internal processing limits and communicate the change to their exporter clients. Legal and compliance teams should verify that any internal export policies or standard operating procedures that referenced the Rs 10 lakh cap are updated accordingly.