Chinese etailers using different routes after clampdown at Mumbai port: Local Circles

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Commercial shipments coming as gifts at the Mumbai port have reduced by almost 60 percent as the Mumbai customs authority has clamped down on many Chinese e-commerce companies, according to a report by the community media platform Local Circles.

The department has taken note of companies sending products as gifts to customers in India and avoiding duties.

However, many products are still entering India through Delhi, Bengaluru and Kochi.

In a letter written to DPIIT, LocalCircles has requested the government's intervention to initiate enforcement exercises at these locations as well and ensure that the gift route is not misused by Chinese e-commerce companies.

The development happens a few months after the government had a discussion to remove the exemption provided on 'gifts' bought from other countries through online commerce sites.

The issue was discussed during a meeting of the Standing Group of Secretaries on e-commerce which was chaired by Ramesh Abhishek, Secretary, DPIIT, Moneycontrol had reported in January.

Currently, the customs rules are violated particularly by the gifting route.

As per one of the other recommendations, the government is also expected to look at limiting the existing limit of Rs 5,000 to a single consignor or to a particular KYC/Aadhaar account.

All goods that are imported into India from abroad are liable custom duties. However, "gifts" worth Rs 5,000 received from abroad are exempted from this.