India Will Increase Charges For 350 Kinds Of Imports, Including Textiles.

The halo of India's "economic growth miracle" has subsided and exports are becoming more and more difficult.

RCEP stands back.

Worried about the impact on all walks of life in China, 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 China's products, while also reducing tariffs to other countries, such as reducing tariffs on 86% of Australia and New Zealand products, and reducing tariffs on 90% of ASEAN, Japan and South Korea.

According to India media reports, India Prime Minister Modi has explained at home that RCEP will lead to the loss of interests of farmers, traders, professionals, industries, workers and consumers in India. For example, farmers in India are worried that dairy products from Australia and New Zealand will bring impact; India factory owners worry that cheap industrial products from China will "overwhelm" the India market.

Trade protection intensified

With the downward trend of India's economy, the government is pushing the "Make in India" policy to develop the domestic manufacturing industry. In December 3rd, it was reported that India would increase import charges for 350 commodities deemed "non essential".

It is reported that India has identified a specific list, including toys, electronics and textiles. In addition, India will add a "quality check" to these products.

The first step of the India government is to control the quality of toys. In the toy market of US $1 billion 500 million in India, 90% of China's products account for the restriction of Chinese goods entering the India market and protecting their industries.

It is reported that samples will be randomly selected from each shipment and sent to the laboratory for testing. The customs will carry out the quality inspection requirements according to the testing conditions. Obviously, it did not expect to give relevant enterprises a transitional period. This will lead to many production enterprises in China unable to adjust production and transportation in time. Failing to comply with the new regulations will not be able to clear customs in India at the end, and may even be destroyed. The cost is borne by importers. Some enterprises in China have learned that the news has stopped sending relevant products to India.

The India government also believes that increasing imports of tariff products such as televisions and mobile phones will boost domestic manufacturing, which accounts for most of India's trade deficit.

Cross border electricity providers encounter ambush

The e-commerce market in India has great potential. According to Statista statistics, the scale of the India electricity supplier market reached 16 billion 70 million US dollars in 2016, and reached 20 billion 60 million US dollars in 2017. It is expected to reach US $25 billion 80 million in 2018, showing a growth rate of over 25%. It is estimated that the electricity market in India will exceed US $50 billion by 2022.

However, in terms of policy control, India is becoming more and more stringent. India will strengthen its examination of imports of electronic products, and is also pushing ahead 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 Sino India Etail couriers (the official India seller of SheIn on China's e-commerce platform, mainly selling clothing and electronic products), and also seized the company's warehouse. The reason given by the customs is that the declared amount is too low and the declaration is wrong. Customs in Mumbai have also synced this information to the national risk management portal, which manages tax avoidance, and reminds other customs to pay attention to this situation. Subsequently, India customs stopped customs clearance throughout the territory, and a large number of Chinese sellers were stuck in customs.

In August, the government of India asked the customs and post offices to concentrate on careful consideration of sales volume. The DPIIT (industry and Internal Trade Promotion Council) issued written notices to ports from all over India, requiring careful verification of goods to determine whether they are genuine "gifts". According to the law of the India, they do not have to pay taxes if they send gifts to Indians for 5000 rupees or less.

In fact, the storm has already started since the end of 2018. At that time, the India government accused Club Factory, SheIn and other Chinese e-commerce sellers to send goods to India consumers for tax evasion in the form of "gifts".

India believes that ordering products from Amazon's website is not a big problem - they pay tariffs and taxes when buying goods. However, many importers or distributors on the India e-commerce website take various means such as trans shipment to evade tariffs, and the actual value of the goods has not been reported faithfully.

Earlier this year, RSS alliance Swadeshi Jagran Manch and social platform LocalCircles had written to the Ministry of finance of India, stressing that the tax evasion behavior of Chinese business operators has formed a low price competitive advantage with India counterparts.

The latest figures show that in the third quarter of this year, India's GDP growth was only 4.5%, a record low of 6 years, lower than that of the second quarter, and a sharp decline compared with the second quarter of last year (8.2%).

In the face of the depressed export market, our suppliers should pay close attention to the policy direction and avoid risks.