No ₹10 lakh limit anymore: What Budget 2026 just changed for e-commerce exporters

Finance Minister Nirmala Sitharaman on Sunday announced a major push to India’s e-commerce exports by removing the ₹10 lakh value cap per consignment on courier exports and streamlining the handling of rejected and returned parcels.

In her Budget 2026-27 speech, Sitharaman said the government would support the global ambitions of small businesses by allowing exports of any value through courier channels.

What was the rule earlier?

Under existing norms, commercial exports through courier mode were capped at ₹10 lakh per consignment.

The value cap forced exporters to divert such shipments to conventional air or sea cargo, even if courier services were faster and more suitable.

What did Budget 2026 change?

The government has announced complete removal of the ₹10 lakh value cap on courier exports.

“To support aspirations of India’s small businesses, artisans and start-ups to access global markets through e-commerce, I am pleased to announce complete removal of the current value cap of ₹10 lakh per consignment on courier exports,” Sitharaman said.

Once implemented, exporters will be able to ship consignments of any value through courier channels, without being forced to switch to traditional cargo modes purely because of value restrictions.

The Central Board of Indirect Taxes and Customs (CBIC) said the measure will significantly benefit MSMEs, artisans, and e-commerce exporters by “enabling faster, simpler, and more efficient access to global markets while supporting overall export growth and ease of doing business.”

Return to origin

The government also proposed a clear legal framework for ‘Return to Origin’ (RTO) of unclaimed or uncleared international courier shipments, a long-pending issue that has led to congestion at courier terminals and higher logistics costs.

Under the proposed reform, Customs will be empowered to frame regulations on custody of courier shipments and enable their return to foreign senders after a specified time period, instead of forcing auctions or destruction.

“This will result in decongestion of warehouses, quicker handling of uncleared parcels, and reduced administrative burden,” the CBIC said.

Returns and rejects

Recognising that high return rates are a normal feature of global online trade, the Budget also proposed a simplified, risk-based customs framework for handling returns and rejected e-commerce export orders.

While traditional exports see return rates of under 5%, e-commerce exports typically face returns of 20–25%, according to the CBIC.

The proposal includes a dedicated digital return facility that will automatically link returned goods with their original export records, allowing routine parcels to be cleared quickly while only high-risk cases are examined.

“This will streamline reverse logistics, reduce compliance burdens, prevent returned goods from being treated as fresh imports for duty purposes, and give MSMEs and exporters the confidence to scale global e-commerce sales by offering reliable return options to international customers,” the CBIC said.