What do e-commerce company Club Factory, telecom gear manufacturer Huawei, and popular application UC Browser have in common? Nothing, except they are all Chinese companies coming under increasing scrutiny from government departments as well as their domestic rivals in India.
Last week, the Mumbai customs department clamped down on Chinese e-commerce players like Shein, Ali Express and Club Factory for sending shipments as ‘gifts’ to customers in India and avoiding duties. Customs officials allege that the companies are exploiting a law which permits Indians living abroad to send ‘gifts’ worth up to Rs 5,000 to relatives at home without paying any duty.testing.. we are here....
The Federation of Indian Export Organisations (FIEO) is pushing the government to act. “We have told the government that it should remove the duty exemption for gift items up to Rs 5,000 or limit the benefit to a single consignor,” said a senior FIEO official.
The Swadeshi Jagaran Manch has pointed out that these apps pose a threat to domestic manufacturing and retailing as they do not pay relevant taxes such as GST, giving them a huge edge over local players.
The indignation over the e-commerce players comes close on the heels of a stinging attack on Chinese telecom equipment manufacturer Huawei by domestic manufacturers who believe that Huawei’s gear, and that of ZTE, poses a security threat to India.