Industry seeks Budget reset aligning courier rules with digital customs
NEW DELHI, Jan 20 (The CONNECT) — As India’s express logistics and courier sector scales up to become a critical enabler of exports, cross-border e-commerce and MSME participation in global trade, industry leaders are urging the government to modernise regulations that no longer reflect operational or technological realities.
Several restrictions carried forward from an earlier regulatory era now constrain trade without adding proportionate risk mitigation, said Vijay Kumar, Chief Executive Officer, Express Industry Council of India (EICI), underscoring the need for reform ahead of the Union Budget 2026.
India’s express industry, once a niche document-delivery service, has grown into a backbone of global supply chains. The sector is estimated at about USD 9 billion in FY25 and is projected to more than double to nearly USD 22 billion by FY30, with the potential to generate up to seven million direct and indirect jobs. “This scale alone makes it imperative that regulation keeps pace with the way trade actually moves today,” Kumar said.
At the heart of the industry’s ask is the modernisation of the Courier Imports and Exports Regulations, 2010. While these rules successfully transitioned courier clearances from manual processes to a digital framework through the Electronic Courier Clearance System (ECCS), Kumar noted that certain legacy restrictions have outlived their relevance in a fully digitised, risk-managed Customs environment.
One such constraint is the ₹10 lakh value cap on courier exports, which does not apply to air cargo or India Post and has no parallel in major exporting economies. “Express networks operate on time-definite, fully tracked and digitally audited platforms. Retaining a value cap based on outdated risk assumptions limits high-value e-commerce and design-led exports, pushing exporters into slower, costlier channels,” Kumar said.
He also flagged ambiguity around the handling of perishables and regulated goods. Legacy exclusions and subjective interpretations, he said, have led to avoidable detentions and longer dwell times. “For temperature-sensitive medical samples, biological materials and specialised food products, delays can compromise product integrity. With electronic NOCs, partner government agency integration and full audit trails now available, targeted risk-based controls can safely replace blanket exclusions,” Kumar added.
Operational efficiency, according to the industry, can be further improved by enabling advance filing of courier Bills of Entry based on House Airway Bills (HAWBs). The current requirement for Master Airway Bill and flight details at the advance stage undermines pre-arrival processing in a hub-and-spoke express model. Allowing HAWB-based filing, with flight details updated at manifest stage, would align courier clearances with existing ICES practices and speed up out-of-charge decisions.
EICI has also sought reforms to address congestion caused by uncleared courier imports. Reducing the Section 48 timeline to 15 days and permitting return-to-origin for non-interdicted shipments would decongest terminals, lower safety and intellectual property risks, and avoid unnecessary storage or destruction.
On compliance, Kumar pitched a Voluntary Disclosure framework under courier regulations. “Express operators perform system-driven statutory functions and are often best placed to identify documentation gaps. Protecting bona fide disclosures will strengthen cooperative compliance and improve intelligence quality without diluting accountability,” he said.
The industry has further called for proportionate enforcement in licensing actions, cautioning that suspension as a first response to operational lapses can disrupt international supply chains and dent India’s credibility as a reliable trading partner.
Finally, Kumar emphasised the need for real-time data exchange across ECCS, ICEGATE, ICES, DGFT and other government systems, and for enabling SEZ and EOU courier shipments through ECCS. “Fragmented systems and legacy formats create valuation mismatches and post-clearance disputes. Harmonised data standards and end-to-end digital workflows will future-proof India’s express trade architecture,” he said.
“These reforms do not weaken Customs control,” Kumar said. “They strengthen it by leveraging digital data, national risk management and robust audit trails. The Union Budget 2026 is a timely opportunity to align courier regulations with the scale, ambition and growth trajectory of India’s express logistics sector.”
