Small and medium level exporters expect their costs to come down sharply as provisions of Foreign Trade Policy (FTP) 2014-19 will allow them to ship goods cheaper, and help them price their merchandise competitively. Even though the policy was announced by the Government in 2012, it is yet to be notified by the Central Board of Excise and Customs (CBEC). According to existing rules, only gifts and free samples are allowed to be sent abroad through the courier route. The new policy will permit exports of small and low-value goods through the courier route, bringing the cost down and increasing the customer base thereby.
Currently, if Indian exporters or e-commerce companies want to ship outside India, they have to go through at least five different vendors in the freight chain to deliver the goods to the customer, such as origin and destination transportation, clearing agent and air transportation. Once the FTP is implemented, these activities can also be handled by courier companies and clearance can be done through courier terminals, which will reduce the operational cost. Industry experts aver that the policy will have a multiplier effect as the companies can pass on the benefit to the customers, thereby increasing volumes across the industry.
