Law Updates

Subject

Summary: In its notice dated March 27, 2026, the Directorate General of Foreign Trade ( DGFT ) has amended Para 9.05 of the Foreign Trade Policy (FTP) 2023. Under the new amendment, there is no longer any limit on the value of goods exported through a courier service or foreign post office. Until now, businesses exporting goods through a registered courier service could send goods worth only up to Rs 10,00,000 (Rs 10 lakh) per consignment. With this amendment, that value cap is withdrawn entirely, effective April 1, 2026. This is significant because thousands of exporters, mostly MSMEs, use courier services to transport their cargo out of the country. Fixed-value limits per consignment meant that exporters had to either split their high-value consignments or resort to more costly export channels. The removal of the courier export value limit under this notification affects manufacturers, exporters, e-commerce brands, and MSMEs that use the courier and post channels for international transactions. Everyone exporting high-value cargo through the courier channel needs to know the implications of this amendment. This article explains the notification in plain language, what has changed, who is affected, and how businesses can adjust their export compliance processes. Key Highlights of the Notification Issued by DGFT, Department of Commerce, Ministry of Commerce and Industry. Published in the Gazette of India (Extraordinary), Part II, Section 3, Sub-section (ii), Gazette No. 4016, dated July 29, 2026. Amends Para 9.05 of the Foreign Trade Policy (FTP) 2023, which deals with exports through Courier Service/Post. Issued using powers under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with Paragraphs 1.02 and 2.01 of FTP 2023. The earlier version of Para 9.05 fixed a value limit of Rs 10,00,000 per consignment for exports through courier service. The revised Para 9.05 removes this value limit completely. No per-consignment value ceiling is now prescribed for courier exports. Exports through a registered courier service or Foreign Post Office remain permitted only as per notifications issued under the Customs Act, 1962. Exportability of goods continues to be governed by the FTP/Export Policy in ITC(HS), as notified separately. The amendment does not change any other part of Para 9.05, such as which items are eligible for export through courier. This amendment shall be in force with effect from April 1, 2026. This notice is signed by Lav Agarwal, Director General of Foreign Trade and Ex-officio Additional Secretary. This amendment shall apply uniformly to all registered couriers and foreign post offices notified under the Customs Act, 1962. This notice does not provide for any transition period, exception, or carve-out. This notice makes no mention of changes to forms; businesses are expected to follow the current customs/courier export practices until further notice. The Regulatory Framework Relevant Act: Foreign Trade (Development and Regulation) Act, 1992. Section 5 empowers the Central Government to make and modify the export-import policy. Policy Document Modified: Foreign Trade Policy (FTP) 2023, specifically Paragraph 9.05 relating to exports through Courier Services/Post. Issuing Authority: Directorate General of Foreign Trade (DGFT), under the Department of Commerce, Ministry of Commerce and Industry, Government of India. Legislative Background: FTP 2023 serves as the comprehensive policy governing India's import-export framework. In particular, Paragraph 9.05 refers to the conditions for exporting goods via couriers or foreign post offices rather than the cargo/freight channel. Purpose of Paragraph 9.05: For regulation and facilitation of export of goods through courier/post offices, as per Customs Act notifications and relevant export policy of ITC(HS). Scope of the Modification: It relates only to the limit of value of goods provision in Paragraph 9.05. It does not change the eligibility criteria, restrictions on items and any other condition for courier export not specified in the notification. Applicability: To all exporters, including manufacturers, traders, online exporters and MSMEs exporting goods through registered courier service or foreign post offices as per the Customs Act, 1962. What Has Changed? The amendment is narrow but significant. It changes only one sentence within Para 9.05 of FTP 2023. Old Provision vs New Provision Aspect Existing Para 9.05 (Before Amendment) Revised Para 9.05 (After Amendment) Export channel Registered courier service/Foreign Post Office, as per Customs Act 1962 notifications Same no change Exportability of items Regulated as per FTP/Export Policy in ITC(HS) Same no change Value limit per consignment Rs 10,00,000 (Rs 10 lakh) No value limit prescribed Effective date of this limit removal Not applicable April 1, 2026 In Simple Words Earlier, if a business wanted to export goods through a courier company or foreign post office, the total value of a single shipment (consignment) could not exceed Rs 10 lakh. If the shipment value was higher, the exporter had to either split the consignment or use a different export route, such as standard cargo shipment with a customs broker. From April 1, 2026, this cap no longer applies. A single courier consignment can now carry goods of any value, provided it meets other applicable conditions, such as the item being permitted for export under the ITC(HS) policy and the courier or foreign post office being registered under the relevant Customs Act notification. What has not changed: The requirement to use a registered courier service or notified foreign post office remains. The export eligibility of specific goods under the ITC(HS) classification and the export policy also remain unchanged. This amendment only removes the value ceiling it does not open up new categories of goods for courier export. Implementation Timeline / Compliance Deadlines Milestone Date Notification issued by DGFT March 27, 2026 Notification published in Gazette of India July 29, 2026 Amendment comes into effect April 1, 2026 Value limit stands withdrawn from April 1, 2026 According to the notice, the amended provisions will be effective from April 1, 2026, and the per-consignment value ceiling for export shipments via courier services will be withdrawn from the same date. The notice makes no provision for any transition period, grandfathering, or phased implementation. For practical purposes, the businesses need to consider April 1, 2026, as the effective date. Why This Amendment Was Introduced? The notification itself does not spell out detailed reasons for the change; it only states the legal basis and the effect of the amendment. Based on what is stated, the change appears to serve the following broad objectives, several of which are commonly associated with such trade facilitation measures: Ease of Business: Abolishing the ceiling on fixed value would facilitate the export process for goods shipped via courier channels. Support for increased export volume: As export volume and value grow through courier channels, especially for MSMEs and e-commerce players, the Rs 10 Lakh cap may become restrictive for genuine businesses. Simplification of export procedure: Exporters no longer need to split high-value shipments into multiple smaller consignments solely to remain below a value threshold. Alignment with courier trade growth: Courier and postal export channels have become a significant route for cross-border trade, especially for time-sensitive and high-value goods. The notification does not mention consumer protection, environmental impact, or safety as objectives for this specific amendment. These are not stated in the source document and should not be assumed. Impact on Businesses Manufacturers:  Manufacturing companies that used courier services to export their final goods could ship higher-value consignments as single shipments. Importers:  The current notification applies only to exports, not to imports. The notification does not amend the import provisions of the FTP 2023. Exporters:  Exporters that had been complying with the existing Rs 10 lakh limit by splitting shipments would be able to ship in consolidated consignments. Brand Owners:  Brand owners who sell premium products internationally via courier-based fulfillment can now ship single high-value consignments without any value-based restrictions, provided the product is eligible for export under the ITC(HS) policy. MSMEs:  MSMEs that rely heavily on courier export for cost and speed advantages stand to benefit from reduced procedural complexity, since they no longer need to plan shipments around a fixed value threshold. Start-ups:  Start-ups engaged in exports, especially in the D2C or e-commerce space, frequently deliver high-value wholesale shipments via courier. The above amendment eliminates a regulatory hurdle that could delay shipment times. Large Enterprises:  Large enterprises that use courier services for specific high-value or time-sensitive shipments (for example, samples, prototypes, or premium products) can have greater flexibility without having to switch to standard freight solely because of value. Service Providers:  Courier service providers and foreign post offices registered under the Customs Act, 1962, are the service providers through which facilitation will be provided. Logisticians and freight forwarders may experience an increase in high-value shipments through couriers. Summary of Impact Areas Impact Area Effect of Amendment Operational Fewer split shipments; simplified consignment planning Financial Potential reduction in per-shipment courier and documentation costs Documentation No new documentation format specified in this notification Compliance Value-limit compliance check for courier exports is no longer required Supply Chain Greater flexibility to route high-value goods through courier instead of standard cargo How Businesses Can Achieve Compliance This notification does not introduce any new requirements for registration, licensing, or documentation. It just abolishes the existing cap on value. Yet, organizations using courier service for their exports must check the below-mentioned requirements, which are still needed according to Para 9.05: Internal Audit: Assess the existing export process to identify shipments previously split due to the Rs 10 lakh value cap, and determine whether consolidation would be beneficial now. Documentation Audit: Ensure that the shipping bill and courier export documents accurately reflect the consignment value, without any value cap. Registration Check: Determine whether the courier service used or the foreign post office is registered in accordance with the applicable notification under the Customs Act, 1962. ITC(HS) Export Policy Check: Confirm that the goods being exported remain permitted for export under the current ITC(HS) classification and export policy. The removal of value limits does not change item-level restrictions. Testing and Certifications: If the goods to be exported require specific testing and certifications under other relevant regulations, those regulations will still apply regardless of the shipment's value. Maintenance of Records: Keep records of consignment values, invoices, and shipping documents, as higher-value shipments may receive more scrutiny than others. Compliance Monitoring: Track any further DGFT circulars or trade notices, as the source notification does not mention accompanying procedural changes any additional guidance would be issued separately. Compliance Tip: Despite the elimination of the value cap, exporters should note that this does not imply unlimited export of goods via couriers. There remain requirements for the eligibility of each good according to the ITC(HS) code and the customs notification. Benefits for Businesses Legal Compliance: Businesses can ship high-value consignments through courier without breaching a policy-based value cap. Reduced Penalties: Lower risk of inadvertent non-compliance from misjudging consignment value splits. Market Access: Easier fulfilment of large or high-value international orders through an existing courier relationship. Customer Trust: Faster, uninterrupted fulfilment of high-value export orders. Brand Reputation: Consistent order fulfilment without procedural delays caused by value-based shipment splitting. Operational Efficiency: Fewer shipments to manage per high-value order. Competitive Advantage: Exporters can offer higher-value courier shipments faster than competitors still adjusting to the new provision. Export Opportunities: Better suited to fulfil bulk or premium-value export orders through courier instead of routing them through standard freight. Right Decision or Additional Burden? This amendment is a compliance simplification rather than a new compliance burden. It removes a restriction rather than adding one. Advantages: No more artificial splitting of high-value shipments. Simpler consignment planning for exporters using courier as their primary export channel. Potential cost and time savings on documentation per shipment. Challenges: This notification fails to address whether the courier companies themselves would revise their internal value and insurance limits, which may still hinder the shipment of extremely valuable items even at that stage. Businesses should ensure that their internal systems are in place so that there is no value-based limit for the purpose of the courier export policy. Item-level exportability of the ITC(HS) code remains the same, and businesses cannot assume that all valuable items are now eligible for export via courier. Compliance Costs: This notification does not state any increase in compliance costs. Compliance costs may decrease because several smaller shipments can be consolidated into a single shipment. Industry Readiness: This is a case of ease of compliance rather than imposing an obligation. Thus, industry readiness should be instantaneously achieved after April 1, 2026. Long-Term Benefit: Over time, this change may encourage more exporters, particularly MSMEs and e-commerce businesses, to use courier as a primary export channel for higher-value goods. Business Opportunities Created •    Manufacturers and Exporters: Ability to fulfil larger, higher-value export orders directly through courier, without restructuring shipments. •    Importers: Not directly affected by this notification, as it applies only to exports. •    Testing Labs: Where export goods require testing or certification, demand may rise as higher-value and possibly higher-volume consignments move through courier channels. •    Consultants: Businesses transitioning their export documentation and internal processes to reflect the new provision may need regulatory guidance to confirm continued compliance with ITC(HS) and Customs Act requirements. •    Technology Providers: Providers of logistics and export management solutions may need to revamp their rules for value-limit validation, which were designed around the Rs 10 lakh limit. •    Service Providers: Companies requiring guidance on the list of items still eligible for shipment via courier services and the document format for such shipments may need compliance assistance. Why Businesses Choose Corpseed? Regulatory changes like this one are usually simple to read but not always simple to apply correctly across daily export operations. Even a single-clause amendment can affect invoicing formats, courier agreements, item eligibility checks, and internal audit processes. Corpseed works with manufacturers, exporters, MSMEs, and startups across India on regulatory advisory, licensing, registration, and documentation support related to foreign trade compliance. This includes: Reviewing whether specific goods remain eligible for export under current ITC(HS) and export policy provisions. Assisting with documentation and shipping bill accuracy for courier-based export consignments. Supporting registration and compliance checks related to courier services and foreign post offices under Customs Act notifications. Helping businesses track and interpret ongoing DGFT circulars and FTP amendments that affect their specific export category. Providing end-to-end compliance support, from internal audit to renewal and reporting, for businesses expanding their courier export operations. Rather than treating this as an isolated update, professional guidance helps businesses map how this change fits into their broader export compliance framework, including customs, taxation, and sector-specific regulatory obligations. Corpseed's Core Message The deregulation steps, such as eliminating the maximum value for courier export consignments, can only be helpful if the firm uses them effectively. Errors such as those made during documentation, item export qualification, and courier registration verification can cause problems regardless of any regulatory simplification. Corpseed helps firms turn such regulations into export operations that comply with applicable laws. This ranges from checking the export eligibility of the consignment to ensuring that the documents for high-value consignments via couriers are in order. If you are a firm that exports via couriers and need to learn more about the amendment regarding your product category, talking to a regulatory expert should be your first step. Conclusion Notification DGFT does away with the Rs 10 lakh ceiling per consignment for exports through a registered courier service or a foreign post office, as mentioned in Para 9.05 of the FTP 2023. The said amendment will come into force from April 1, 2026. The basic rules have not changed. Exports will need to continue to be affected through a registered courier service or foreign post office as specified under the Customs Act 1962, and the item-level exportability rules will continue to be as per the ITC (HS) Export Policy. From a compliance standpoint, for business, it is a facilitative measure that addresses a procedural issue rather than adding to the compliance process. It will allow manufacturers, exporters, MSMEs, and even ecommerce brands to ship high-value consignments through couriers without dividing consignments or diverting exports. Businesses planning to scale up high-value courier exports should still confirm item eligibility, courier registration status, and the accuracy of documentation. If you are unsure how this amendment applies to your specific export category, consulting a regulatory compliance expert like Corpseed can help you apply this change correctly and avoid avoidable compliance risk.