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
Reliance Jio Summer Surprise Will Continue to Bleed Industry, Says COAI

The new Reliance Jio Summer Surprise offer will continue to bleed the industry, says cellular operators' body COAI, adding that the impact may even extend to ba...

Recently posted. 741 views . 26 min read
 

 Article
TRAI Channel Selector Application Introduced to Help Users Choose Channels, Know Monthly Rental

HIGHLIGHTS   *TRAI has launched a new service called Channel Selector Application

Recently posted. 819 views . 2 min read
 

 Article
iPhone XS Out Of Box Charging 'Insanely Slow'

What Apple's iPhone XS (details) and iPhone XS Max (details) get right, they get very right. The problem is what they get wrong, they get very wrong and furth...

Recently posted. 1K views . 1 min read
 

 Reviews
Zebronics Orion Review



Recently posted . 1K views . 77 min read
 

 Article
How To Block Facebook, WhatsApp When Needed? Centre Asks For Views

Last month, the government had expressed dissatisfaction over measures previously listed by WhatsApp for checking fake news that have, in several cases, triggered m...

Recently posted. 912 views . 1 min read
 

 Article
All-New Hyundai Santro Hatchback Officially Unveiled in India, Bookings to Open at Rs 11,100

The all-new 2018 Hyundai Santro gets segment firsts like rear AC vents and a 17.64 cm (6.94-inch) touchscreen audio video system. Bookings for the hatchback open ...

Recently posted. 793 views . 1 min read
 

 
 
 

   Prashnavali

  Thought of the Day

Don’t be afraid to give up the good and go for great.
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