Online shopping is a guilty pleasure all of us enjoy. And isn’t it just exhilarating when you can easily find the latest styles in a within a reasonable price? In the past year, websites like Shein, Romwe, and Club Factory have become quite popular amongst ardent online shoppers. Well, if you have ordered something from these lately, we are here with your order update. There is a chance your order might not come!
@SHEIN_official and #ClubFactory face crackdown from Mumbai customs for evading taxes…https://t.co/vqjmALS4Jn
— Apparel Resources (@apparel_res) June 22, 2019
What Is It?
Yes, that’s right, the cute pants and crop top you ordered last night might never show up as they are currently sitting in a Mumbai Custom’s warehouse. Mumbai Customs has seized around 500 parcels from Shein and Club Factory and there is a chance your order is amongst them.
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Shein and Club Factory are popular online shopping platforms known for selling stuff at a really low price. These things include clothes, home decor, and other utility items.
This is a part of Mumbai courier terminal’s crackdown on a dozen Chinese companies for allegedly paying much lower customs duties. Presently, free samples, and gift items up to the value of Rs 5000 can be received duty-free in India. But companies like Shien and Club Factory have been under-billing their shipments to get them through the customs duty-free.
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What’s More?
And it doesn’t end here. The warehouse of Shein in Mumbai has also been seized. This is being done because the Government, as well as the trader bodies, are heavily opposing the Chinese e-commerce players in India.
It was reported that while the packaging of these parcels looked like B2C, these companies have been showing it as a B2B transaction, thus, avoiding 42.08% custom duty.
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While your late night online shopping sprees will certainly come to a halt with this, do you agree that these e-commerce platforms were hampering the growth of our Indian platforms? Well, if you did order something, we hope you guys get your refunds.