Challenges in Export Bill Regularisation in case of e-commerce exports and how exporters can address them



Indian Micro, Small, and Medium Enterprises (MSMEs), which contribute to over a third of the country’s GDP, account for almost half of the country’s exports, with e-commerce seen as critical for enabling Indian MSMEs to tap the global market, expand their customer base and sell Made-in-India products globally.
The size of the global e-commerce market reached a value of $13 trillion in 2021 and is expected to grow to $55.6 trillion by 2027, rising at a CAGR of 27.4% during 2022-2027, according to the
IMARC Group. As per data available with IBEF, India’s e-commerce market is expected to reach $111 billion by 2024, $200 billion by 2026, and $350 billion by 2030.
As India ramps up its efforts to boost India’s economic self-reliance, e-commerce will enable businesses, including Indian MSMEs, to sell directly to customers across the world and achieve scale, without the need for physical presence in these markets. E-commerce exports is, therefore, expected to be a strong enabler in increasing the overall share of MSME’s contribution to exports.

Common documents involved in e-commerce exports are:

Commercial Invoice
Transport document like Airway Bill/Courier Bill of Export/Postal Bill of Export
Regulatory documents like Shipping Bills issued by Customs/Courier Shipping Bill/Postal Shipping Bill.

Challenges faced by exporters in regularising their e-commerce shipments.
There are many operational challenges that e-commerce exporters face while regularising their bills. They include:

High shipping cost – transport & custom clearance
High cost for collection of sales realisation- charges of payment gateways/aggregators
Bulky paperwork especially where the volume of business is high
Requirement of physical submission of documents at AD Banks for regularisation
High bill regularisation charges.

Regulatory guidelines (exports):

Realisation of export proceeds within 9 months from the date of shipment
Non-submission / timely regularisation of Export Bills may lead to regulatory action such as caution listing by RBI

Thus, in order to avoid any actions from the regulatory bodies, it is important to get the Export Bills regularised on time with the concerned AD Bank of the exporter.
Digital solutions for Export Bill regularisation for e-commerce exporters:
In order to make the Export Bill regularisation process hassle-free with a digitised solution, ICICI Bank’s
Export Bill Regularisation solution allows exporters to lodge, realise, and regularise their Export Bills through a simple online request to the Bank.
It is a paperless, time saving, and easy-to-use process as the entire regularisation process can be done online. ICICI Bank also allows facilities like:

A complete real-time dashboard for all pending compliances including Shipping Bills that are pending for regularisation
Online/Bulk Export Bill Regularisation through the Bank’s digital platform – Trade Online, which reduces the Turn Around Time (TAT)
Courier & Postal Shipping Bill regularisation and direct integration with logistics providers for ease of validating shipments
Free & automated issuance of Foreign Inward Remittance Statement (FIRS)
Flat regularisation charges.

ICICI Bank allows its customers to regularise their Export Bills through three ways:

Through Trade Online: Shipping Bills available in EDPMS can be regularised through ICICI Bank’s comprehensive online system
Through registered e-mail ID: Customers can e-mail the documents through their registered e-mail ID
Submission at the branch: Customers can also choose to submit the documents at trade enabled branches.

Conclusion
To help ease the challenges in e-commerce exports, including those related to regularisation of multiple bills, banks like ICICI Bank provide flexible options for its exporters to enable faster facilitation of Export Bills regularisation through a paperless transaction that is both quick and convenient.
Indeed, removing challenges associated with e-commerce exports with the help of technology solutions is of utmost importance at a time when export opportunities are growing, buoyed by India’s push for economic self-reliance through initiatives like Make in India.
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