Obstacles to export to India! Toys, textiles, footwear, electronics and other 350 kinds of goods inc

RCEP flinches Worried about the impact on various industries in the country, in early November, India officially announced that it would not join the RCEP (Regional Comprehensive Economic Partnership Agreement). Why did you shrink back? An
RCEP flinches
Worried about the impact on various industries in the country, in early November, India officially announced that it would not join the RCEP (Regional Comprehensive Economic Partnership Agreement).
 
Why did you shrink back? An important reason is that if the agreement is signed, India will gradually reduce tariffs on 80% of Chinese products, and also reduce tariffs on other countries, such as 86% of Australian and New Zealand goods and 90% of ASEAN,Japan,South Korean goods.
 
According to Indian media reports, Indian Prime Minister Modi has explained in the country that RCEP will cause damage to the interests of India's "farmers, traders, professionals, industries, workers and consumers". For example, Indian farmers worry that dairy products from Australia and New Zealand will impact; Indian factory owners worry that cheap industrial products from China will "inundate" the Indian market.
 
Trade protection intensifies.
As India ’s economy declines, the government is pushing for a “Make in India” policy to develop domestic manufacturing. On December 3, the news said that India would increase import fees for 350 types of goods deemed "non-essential."
 
It is reported that India has confirmed a specific list, including toys, electronics and textiles. In addition, India will add a "quality check" for these products.
 
Indian government's first step will be the quality control of toys. In India ’s $ 1.5 billion toy market, products from China account for 90%. This measure may be to restrict Chinese products from entering the Indian market and protect domestic industries.
 
It is reported that the samples will be randomly selected from each batch of goods and sent to the laboratory for testing, and the customs will fulfill the quality inspection requirements according to the testing situation. Obviously, it has not thought about giving the relevant enterprises a transition period. This will cause many production enterprises in China to be unable to adjust production and shipment in a timely manner. Failure to comply with the new regulations will result in failure for customs clearance in India and may even be destroyed at the expense of the importer. Some Chinese enterprises have learned that they have stopped shipping related products to India.
 
Official notification from India.
Indian government also believes that increasing import tariffs on televisions and mobile phones will boost domestic manufacturing, with electronics accounting for most of India's trade deficit.
 
Cross-border e-commerce encounters ambush.
Indian e-commerce market has huge potential. According to Statista statistics, the Indian e-commerce market size reached US $ 16.07 billion in 2016 and US $ 20.06 billion in 2017. It is expected to reach US $ 25.08 billion in 2018, showing a growth rate of over 25%.It is estimated that by 2022, India's e-commerce market will exceed 50 billion U.S. dollars.
However, in terms of policy control, India is becoming stricter. India will step up its review of e-commerce imports and is also moving forward with the revision of its e-commerce regulations.
 
In the middle of this year, China's cross-border e-commerce sellers encountered a large-scale ambush from India.
In June, Mumbai Customs seized about 500 courier deliveries from Sino India Etail (the company is an official Indian seller on Chinese e-commerce platform SheIn, which sells clothing and electronics), and also sealed the company's warehouse. The reason given by the customs is that the declared amount is too low and the declaration is wrong. Mumbai's customs have also synchronized this information to the national risk management portal that manages tax avoidance, reminding other customs to pay attention to such situations. Subsequently, the Indian customs stopped express delivery across the country, and a large number of goods from Chinese sellers were blocked by customs.
 
In August, the Indian government asked the customs and post offices to focus on carefully considering the volume of sales transactions. DPIIT (Industrial and Internal Trade Promotion Agency) issued written notices to ports from across India asking for careful verification of the goods to determine if they were truly "gifts." Under Indian law, Indians are not required to pay tax as long as they send gifts worth Rs 5,000 or less.
 
In fact, this storm has begun from the end of 2018. At the time,Indian government accused Chinese e-commerce sellers such as Club Factory and SheIn of sending products to Indian consumers in the form of "gifts" to evade taxes.
 
India believes that ordering products from sites like Amazon is not a big problem-they pay duties and taxes when they buy them. However, many importers or distributors on Indian e-commerce websites use various methods such as transshipment to evade tariffs, and the actual value of the goods is not reported truthfully.
 
Earlier this year, the RSS alliance Swadeshi Jagran Manch and the social platform LocalCircles have written to the Indian Ministry of Finance, emphasizing the tax evasion behavior of Chinese e-commerce operators and forming a low-cost competitive advantage with their local counterparts in India.
 
The latest data show that in the third quarter of this year, India ’s GDP growth rate was only 4.5%, a 6-year low, lower than the 5% in the second quarter; compared with the high point of the second quarter of last year (8.2%) , It is even a sharp decline.
 
In the face of an economically sluggish export market, our suppliers must pay close attention to policy trends and avoid risks.

2019.12.17
 

 

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