The Short Answer
Ecommerce export setup for Indian sellers is the mandatory process of registering with customs and tax authorities to legally ship commercial goods to international buyers. If you fail to link your bank AD Code with ICEGATE or your courier files the wrong CSB-V shipping bill for you, your foreign payment will get blocked by the RBI. The rule that decides everything: your IEC, GST, shipping bill and bank inward remittance must all carry the exact same company name and address.
Key Facts
| Parameter | Details |
|---|---|
| Scheme name | Ecommerce Export Setup (CSB-V) |
| Governing body | CBIC and DGFT |
| Parent policy | Foreign Trade Policy 2023 |
| Legal basis | Courier Imports and Exports (Electronic Declaration and Processing) Regulations 2010 (amended 2026) |
| Who it is for | Indian manufacturers, traders and D2C brands selling online to global buyers |
| What you get | Legal clearance to export commercial goods via courier and claim GST refunds |
| Validity or deadline | IEC requires annual update between April and June |
| Where you apply | DGFT portal for IEC and ICEGATE for AD Code |
Why We Are Writing This
Last regulatory review: September 2026. Rasp International has managed customs clearance and DGFT compliance for 500+ exporters since 2019. We see sellers lose money every week because of bad setup and we wrote this guide to stop that happening to you.
What is Ecommerce Export Setup
Ecommerce export setup is a compliance framework that registers an Indian business with customs, tax and banking authorities to legally sell physical products to overseas retail buyers. The Central Board of Indirect Taxes and Customs (CBIC) runs the customs side through the Express Cargo Clearance System (ECCS). The Directorate General of Foreign Trade (DGFT) manages the licensing side through its portal. Proper setup connects your GST returns to your shipping bills and your bank remittances. It sits above all marketplace onboarding steps because Amazon or Shopify cannot fix a blocked customs port.
What it Actually Costs
Setup costs are mostly one time fees while compliance costs recur with every shipment. The table below shows indicative costs for a standard Indian seller.
| Setup Item | Agency | Frequency | Indicative Cost (INR) |
|---|---|---|---|
| IEC Registration | DGFT | One time | 500 (government fee) |
| GST LUT Filing | GST Portal | Annual | Free (self filed) |
| AD Code Registration | Bank and ICEGATE | Per port | Varies by bank |
| RCMC Registration | Export Promotion Council | Annual | 5000 to 15000 |
| CSB-V Filing | Authorised Courier | Per shipment | Included in freight |
| e-BRC generation | Exporter, on the DGFT portal from the bank’s IRM | Per remittance | No bank fee under self-certification (DGFT exporter manual) |
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What Changed in 2026
The rules for courier exports changed significantly in 2026 to help small sellers.
| Parameter | Previous Position | Current Position | What It Means For You | Source |
|---|---|---|---|---|
| Courier value cap | Restricted to 10 lakh INR per consignment | No value limit per consignment from 1 April 2026 | You can ship high value commercial orders via courier | DGFT Notification No. 67/2025-26 dated 27 March 2026 (FTP 2023 para 9.05) and CBIC Circular No. 17/2026-Customs dated 31 March 2026 |
| Inventory model | No inventory-based export framework in FTP 2023 | Inventory-based Cross-border E-Commerce Facilitation Framework: a DGFT-registered Exporter-on-Record may hold export-only inventory of Indian-origin goods | Title passes from you, as Seller-on-Record, to the Exporter-on-Record only against a confirmed export order (FTP 2023 para 9.15(iv)) | DGFT Notification No. 27/2026-27 dated 5 August 2026 (FTP 2023 paras 9.13 to 9.19) |
| Export Promotion Mission | No specific e-commerce credit | Credit assistance for e-commerce exporters: cash credit, overdraft or other working capital for MSMEs, with credit cover to the bank and a 2.75% upfront interest subvention | Better cash flow for marketing and inventory | DGFT Trade Notice No. 31/2025-26 dated 6 March 2026, para 3 and Annexure-II para 5 |
The Discrepancy Disclosure
Many courier companies will tell you they can ship your product using their own AD Code to save you time. This is dangerous. If the courier files the CSB-V shipping bill using their AD Code instead of yours the GST portal will not recognise the export as yours. You will lose your GST refund. A different AD code does not by itself stop the e-BRC, because DGFT eBRC FAQ Q56 allows it, but the DGFT portal shows an AD code mismatch warning when you generate it. Verify every draft shipping bill before the courier files it. Check that your IEC and your AD Code appear in the exporter fields. Keep a PDF copy of every final CSB-V.
Eligibility
Who Qualifies
To export commercial goods through ecommerce channels you must hold an active Importer Exporter Code (IEC). You must have a regular GST registration and not a composition scheme registration. You must file a Letter of Undertaking (LUT) on the GST portal to export without paying IGST upfront. You must have a current account with a bank authorised to deal in foreign exchange. You must link that bank’s AD Code to the specific customs port where your courier hands over the parcel.
Who is NOT Eligible
You cannot use courier export mode (CSB-V) for goods that attract export duty. You cannot use it for goods restricted under the ITC (HS) classification unless you hold a specific license. Entities placed on the Denied Entity List by DGFT cannot export. Third party exporters routing goods through another manufacturer without proper GST linking will face audit rejections. Dropshippers who buy from China and ship directly to the USA do not fall under Indian export rules because the goods never cross the Indian customs border.
The Edge Case Clause
Consider a seller who changes their bank account after shipping the goods but before the buyer pays. The CSB-V shipping bill was filed with the old bank’s AD Code. The foreign payment arrives at the new bank. A different AD code on the shipping bill does not stop the e-BRC: DGFT eBRC FAQ Q56 allows it, and the bank that received the money reports the Inward Remittance Message (IRM). The portal shows an AD code mismatch warning, so tell both banks about the change. Another case involves sellers moving from Micro to Small enterprise status mid year. They must update their Udyam certificate and their DGFT profile immediately to maintain targeted MSME subsidies under the Districts as Export Hubs initiative.
Process Stage by Stage
Stage 1: Before you apply. You need a PAN card, an Aadhaar card linked to your mobile, a cancelled cheque from your current account and a digital signature certificate (DSC) Class 3. Your firm address must match exactly across all these documents.
Stage 2: Filing. Go to the DGFT portal to apply for the IEC. Fill the exact name as it appears on your PAN. Upload the cancelled cheque. Pay the 500 INR fee. Next go to the GST portal and file form GST RFD 11 for your LUT. Finally take the AD Code letter from your bank and register it on ICEGATE using your DSC.
Stage 3: After filing. Hand your goods to an authorised courier like DHL or FedEx. Provide your commercial invoice and packing list. The courier files the CSB-V on the ECCS portal. Customs clears the goods and issues an Let Export Order (LEO). Once the buyer pays, your bank reports the remittance to DGFT as an Inward Remittance Message (IRM), and you generate the e-BRC yourself on the DGFT portal by matching it to your shipping bill (DGFT Trade Notice No. 33/2023-24).
The lapse penalty. You must realise the foreign payment within nine months of the export date. If you fail to bring the money into India and do not get an extension from the RBI you will be reported to the Enforcement Directorate. This mistake is irreversible once the deadline passes.
The fast track. Sellers with Authorized Economic Operator (AEO) status get faster customs clearance and fewer physical inspections. AEO registration requires a clean compliance record and strict physical security at your warehouse.
Six Sector Use Cases
Handicrafts. Sellers ship brassware to the US. They need RCMC from EPCH to claim RoDTEP. The pitfall is incorrect HS codes which leads to customs delays and lost incentives.
Apparel. Brands ship cotton shirts to Europe. They use CSB-V for fast delivery. They claim RoSCTL instead of RoDTEP. The pitfall is failing to register the AD Code at the specific airport port of export.
Leather Goods. Exporters sell leather wallets to the UK. They require a Certificate of Origin. The pitfall is mismatched product descriptions between the invoice and the shipping bill.
Ayurveda Products. Sellers ship herbal supplements globally. They need Ayush licensing. The pitfall is destination country FDA rejection because Indian export clearance does not guarantee foreign import clearance.
Jewellery. Brands export imitation jewellery to the Middle East. They ship via secure courier. The pitfall is valuation disputes by customs officers.
A Cautionary Tale. An online seller shipped premium tea to global buyers using a courier. The seller had an IEC and GST but let the courier file the shipping bills under a dummy AD Code to save time. Six months later the seller tried to claim GST refunds. The GST portal rejected the claim because the shipping bills did not map to the seller’s PAN. The seller lost 500,000 INR in refunds and faced RBI penalties for unlinked foreign remittances. The point of no return was allowing the courier to file the CSB-V without the seller’s AD Code.
Our 7 Step Methodology
1. Document audit. We check your PAN, GST and bank records to ensure exact character matches.
2. IEC registration. We file your DGFT application to secure your base export license.
3. LUT filing. We secure your GST Letter of Undertaking so you can export without paying IGST.
4. AD Code registration. We map your bank to the correct ICEGATE ports using our Class 3 DSC setup.
5. Courier coordination. We vet your logistics partner to ensure they file CSB-V correctly.
6. Audit defence. We maintain a digital repository of your shipping bills and eBRCs to protect you from customs notices.
7. Reconciliation. We match every single foreign inward remittance against its shipping bill to close the RBI loop.
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Honest Limits
This setup will not magically find foreign buyers for your product. This setup will not clear your goods through US or European customs if your product violates local laws. This setup will not protect you from foreign exchange currency fluctuations if you do not hedge your payments.
FAQ
What is ecommerce export setup for Indian sellers?
Ecommerce export setup for Indian sellers is the process of getting an IEC, linking GST with an LUT, registering an AD Code on ICEGATE and configuring courier shipping bills to legally sell physical goods to overseas online buyers.
What is required to start ecommerce export from India?
You need a business entity, a regular GST registration, an Importer Exporter Code (IEC), a current bank account authorised for foreign exchange, a Letter of Undertaking (LUT) and an AD Code registered at the port of export.
Is IEC mandatory for ecommerce export?
Yes. An Importer Exporter Code (IEC) is mandatory for all commercial exports from India regardless of the size or value of the shipment.
What is CSB-V in ecommerce export?
CSB-V is Courier Shipping Bill V. It is the electronic customs declaration form used by authorised couriers to clear commercial ecommerce shipments through the Express Cargo Clearance System (ECCS).
Can Rasp International help with Amazon Global Selling export setup?
Yes. Rasp International handles the entire Indian compliance backend including IEC, AD Code and LUT required to legally operate an Amazon Global Selling account from India.
Do I need a separate GST registration for export?
No. You use your existing regular GST registration. However you must file a Letter of Undertaking (LUT) on the GST portal to export your goods without paying IGST upfront.
How do I receive foreign payments for ecommerce exports?
You receive foreign payments through your authorised dealer bank or through an approved payment gateway like PayPal or Payoneer. The payment must be linked to your shipping bill to generate an eBRC.
What happens if I miss the foreign payment deadline?
The RBI requires you to bring the export proceeds into India within nine months. If you miss this deadline you face penalties under FEMA and you will be listed on the RBI caution list.
Can I claim RoDTEP on courier exports?
Yes. You can claim RoDTEP on commercial courier exports filed under CSB-V provided your product is eligible and you declare your intent to claim the benefit on the shipping bill.
Do I need to pay IGST on ecommerce exports?
If you file a Letter of Undertaking (LUT) you do not pay IGST upfront. If you do not file an LUT you must pay IGST and claim a refund after the goods are exported.
What is an AD Code and why do I need it?
An Authorised Dealer (AD) Code is a 14 digit number issued by your bank. You need it registered at customs so the government knows which bank will receive your foreign currency export payment.
How long does it take to complete export setup?
It depends mostly on your bank. IEC and LUT are filed online, and the AD Code needs a letter from your bank, so how fast the bank issues that letter sets the pace.
Can I export goods through India Post?
Yes. You can export commercial goods through India Post using a Postal Bill of Export (PBE) but courier channels using CSB-V are generally faster and offer better digital tracking.
What records must an ecommerce exporter keep?
You must keep your commercial invoices, packing lists, CSB-V shipping bills, bank realisation certificates and airway bills for at least five years for GST and customs audits.
Do I need an RCMC for ecommerce exports?
An RCMC is not strictly mandatory just to export but you need it to claim government financial incentives like RoDTEP or Duty Drawback through your Export Promotion Council.
This Week Checklist
- Check your PAN card and bank account to ensure the company name matches exactly.
- Apply for your Importer Exporter Code (IEC) on the DGFT portal.
- File your GST Letter of Undertaking (LUT) for the current financial year.
- Ask your bank manager for an AD Code letter on the bank letterhead.
About Rasp International
Rasp International is an ISO 9001:2015 certified EXIM and DGFT advisory firm. We manage DGFT licensing, export incentives, customs compliance and buyer development.
Chat with our compliance team on WhatsApp
View our full export setup service
Sources
- CBIC ECCS CSB-V Guidelines 2026
- DGFT Foreign Trade Policy 2023
- DGFT Trade Notice August 2026
- Ministry of Commerce Export Promotion Mission 2026
For the full compliance, logistics and subsidy picture, read our cross-border ecommerce export setup guide.
Footer Notes
This article provides general guidance. Rules change frequently. Verify all compliance requirements against current DGFT and CBIC notifications before making financial decisions.