Latest News

Draft E-Commerce Policy: Chinese Online Retailers May Have To Register Entities In India
Tuesday, February 26, 2019 IST
Draft E-Commerce Policy: Chinese Online Retailers May Have To Register Entities In India

Foreign online retailers will have to register entities in India if they want to set up e-commerce platforms in the country, besides ensuring that all product shipments are channelised through the customs route, the draft e-commerce policy has proposed. 

 
 

The move impacts Chinese online retailers such as Shein, AliExpress and Romwe as they may have to set up entities in the country to run their online platforms. “This essentially means that all the overseas entities cannot undertake e-commerce without having any Indian presence,” Atul Pandey, partner at Khaitan & Co., told BloombergQuint over the phone. “This may impact online retailers who currently don’t have any presence in India.”
 
The draft e-commerce policy released on Saturday stated that all e-commerce sites or apps available for download in India must have a registered business entity in India as the importer on record or as the entity through which all sales in India are transacted.
 
Over the last two years, several Chinese online fashion portals such has Shein, Romwe and AliExpress—which also provides electronics and smartphones—have expanded their business and market share in the country. Redseer estimates that these e-commerce platforms have grabbed more than 5 percent share of the overall online fashion business, with Tier-II and Tier-III cities accounting for 30 percent of their sales.
 
The total number of shipments from Chinese e-commerce platforms stands close to around 2 lakh per day, according to Shayak Mazumder, chief executive and founder of homegrown cross-border e-commerce platform Eunimart. 
 
The proposed rules on foreign e-commerce websites came after several sellers bodies including All India Online Vendor Association wrote to the consumer affairs ministry to look into the operations of Chinese e-commerce websites. "Some of the players have been misusing the rules and were shipping cheaper products to Indian customers as gifts, to avoid customs duty and goods and services tax," said Mazumder, adding that now firms will either have to get a formal importer on record or set up an entity in India so that every product that is sold can be tracked.
 
The draft policy has also acknowledged the misuse of the “gifting” route, and has proposed that all such parcels shall be banned, with the exception of life-saving drugs. It also added that any non-compliant e-commerce app or website will not be given access to operate in India. 
 
AliExpress, Shein, Romwe, did not respond to an email seeking comments. 
 
The 41-page draft document for which feedback has been sought by March 9, focuses on six broad issues of the e-commerce sector. These include data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy and export promotion through e-commerce. 
 
Amazon and Walmart-backed Flipkart said they are studying the draft, while Snapdeal welcomed the move and said that the draft policy's categorical rejection of inventory-based e-commerce model must be followed by effective implementation of foreign direct investment norms to ensure marketplaces do not own or control inventory, directly or indirectly. 

 
 
 
 
 

Related Topics

 
 
 

Trending News & Articles

 Article
Tata Harrier’s 7-seater Version H7X Will Be Quite Different – Report

Tata Harrier’s three-row seat version in works, details out  

Recently posted . 2K views . 0 min read
 

 Article
How to make you car as silent as a Rolls Royce inside

Rolls Royce cars are extremely luxurious. While there are many expensive pieces of equipment in Rolls Royce cars, their most relaxing feature is the silence that ...

Recently posted . 2K views . 2 min read
 

 Article
India's Top 5 Mobile Charger manufacturer Brand 2019

The following list of India's Top 5 Mobile Charger manufacture Brand 2019  

Recently posted . 2K views . 0 min read
 

 Article
Mahindra XUV300 vs Maruti Brezza, Ford EcoSport, Tata Nexon – Price

XUV300 is the latest entrant in the compact SUV segment.

Recently posted . 2K views . 0 min read
 

 
 

More in Electronics & Gadgets

 Article
Micromax Android TV Lineup Launched in India, Starting Rs. 13,999

Users of the new Micromax Android TV lineup will get access to the Google Play Store, and accompanying games, movies, and music.

Recently posted. 923 views . 0 min read
 

 Article
50 Percent of US Users Don't Know Who Owns WhatsApp: DuckDuckGo Survey

HIGHLIGHTS *Facebook in 2014 acquired WhatsApp for $19 billion *Nearly 60 percent...

Recently posted. 827 views . 1 min read
 

 Article
Love OnePlus Concept One invisible camera? You can thank McLaren and Boeing for it

OnePlus will show its invisible camera technology on the Concept One device at the CES 2020 in Las Vegas. OnePlus derives this technology from McLaren supercars and...

Recently posted. 586 views . 1 min read
 

 Reviews
OnePlus Bullets Wireless Review



Recently posted . 1K views . 69 min read
 

 Reviews
Canon EOS M50 review: Compact, but with DSLR versatility



Recently posted . 1K views . 34 min read
 

 Article
Samsung Galaxy Note 10, Galaxy Note 10+ With S Pen Support Launched in India: Price, Specifications

Samsung Galaxy Note 10 price in India is set at Rs. 69,999, whereas the Samsung Galaxy Note 10+ price starts at Rs. 79,999.

Recently posted. 585 views . 0 min read
 

 Article
No sweetener for Apple to be a part of Make-in-India

Your iPhone and iPad might not get the made in India tag, just yet. Top resources within the authorities say that it's far not going to similarly sweeten the de...

Recently posted. 820 views . 30 min read
 

 
 
 

   Prashnavali

  Thought of the Day

🙏‼मीठा मोती ‼🙏 पैर में से काँटा निकल जाए तो.. चलने में मज़ा आ जाता है, और मन में से अहंकार निकल जाए तो.. जीवन जीने में मज़ा आ जाता है.. चलने वाले पैरों में कितना फर्क है , एक आगे है तो एक पीछे । पर ना तो आगे वाले को अभिमान है और ना पीछे वाले को अपमान । क्योंकि उन्हें पता होता है कि पलभर में ये बदलने वाला है । " इसी को जिन्दगी कहते है "? "खुश रहिये मुस्कुराते रहिये ‼‼ सुप्रभात ‼‼ 🌹 आपका दिन मंगलमय 🌹
Anonymous

Be the first one to comment on this story

Close
Post Comment
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST
Shibu Chandran
2 hours ago

Serving political interests in another person's illness is the lowest form of human value. A 70+ y old lady has cancer.

November 28, 2016 05:00 IST


ads
Back To Top