A standing group of secretaries
chaired by Ramesh Abhishek, Secretary, Dept of Industrial Policy & Promotion, had suggested that the revenue
department examine “steps to prevent violation of existing rules to circumvent
customs duties, particularly by the gifting route†at its first meeting in
September 2018. If implemented, the committee's
recommendations, which have been finalized now, may restrict a large number of
online purchases from China entering India as gifts and being shipped directly
to customers. Under the current customs rules, gifts of up to Rs 5,000 intended
for personal use are exempt from customs duties. The standing group has asked the
department of revenue to examine options such as tracking the source country
and consignors/consignees to identify suspicious activities, the abolition of
exemption for gifts to avoid ambiguity and limiting the number of such
consignments. Indian industry has complained to
the government that Chinese etailers such as Club Factory, AliExpress and Shein
are taking undue advantage of the exemption from customs duties on gifts of up
to Rs 5,000. 
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By IndianMandarins - 2019-01-04 12:15:16
A standing group of secretaries chaired by Ramesh Abhishek, Secretary, Dept of Industrial Policy & Promotion, had suggested that the revenue department examine “steps to prevent violation of existing rules to circumvent customs duties, particularly by the gifting route†at its first meeting in September 2018.
If implemented, the committee's recommendations, which have been finalized now, may restrict a large number of online purchases from China entering India as gifts and being shipped directly to customers. Under the current customs rules, gifts of up to Rs 5,000 intended for personal use are exempt from customs duties.
The standing group has asked the department of revenue to examine options such as tracking the source country and consignors/consignees to identify suspicious activities, the abolition of exemption for gifts to avoid ambiguity and limiting the number of such consignments.
Indian industry has complained to the government that Chinese etailers such as Club Factory, AliExpress and Shein are taking undue advantage of the exemption from customs duties on gifts of up to Rs 5,000.
