- Sep 19, 2005
Cheaper online goods from Chinese e-tailers like Club Factory, Shien and Aliexpress may become a thing of past as government is considering to impose restrictions on online purchases of goods from Chinese ecommerce platforms and apps to reduce the adverse impact on local manufacturing and violation of domestic laws. Department of Industrial Policy and Promotion has also suggested capping purchases of products from Chinese e-retailers and apps at four per buyer per year.
A large number of products from China are entering India under the guise of ‘gifts’ and shipped directly to customers. The government exempts 'gifts' of up to Rs 5,000 received from abroad. The rule was there to allow Non-resident Indians (NRIs) to send gifts of low value to families back home free of customs duty.
There has been allegations that sellers on Chinese e-commerce companies like Aliexpress, Club Factory and Shien have been sending goods marked as 'gifts' into India to avoid import duty.
Apart from import crackdown, government is also planning to create export hub with the help of India Post, which collects duty on imported goods.
According to a ToI report, India Post may set up 20 export hubs to give a boost to local sellers in cross border trade. Chinese e-commerce sites have become popular in India as they are able to keep the prices very low because the goods are dispatched through China Post and more often than not marked as 'gifts' to evade customs duty. The Chinese e-commerce sites are becoming gaining popularity in India as according to some reports the products are at least 50-60% cheaper than what's available on Indian e-commerce sites