The Government of India is expected to take many measures that are projected to benefit e-commerce companies based in India such as Snapdeal and Myntra. These actions are also supposed to be beneficial for several companies working in the garment and handicraft sector as far as increasing their footprints on the global platform is concerned. To achieve this aim, the government would look to make sweeping changes to the export framework that governs their sales outside the country. Among the various measures being considered is a total switch over to filing systems on the internet.
Doing away with caps
At present, there is a cap of INR 25,000 on the purchase. It is expected that this cap would be done away with as well. As per a senior official in the finance ministry, the government has identified several steps to make sure that the e-commerce industry finds it easier to trade. Already in Mumbai, a pilot has been launched to this effect, and soon other customs ports will be brought under the purview of this as well. Normally exports done through these web based marketplaces are dependent on entities such as small packages and couriers.
The matter of paperwork
It also needs to be noted in this context that a significant amount of paperwork is needed in these cases at the ports. The couriers play the role aggregators on behalf of the ECommerce platforms. This means that one courier may need to deal with some packages at the same time. However, unlike the bigger exporters they will only be dealing with a few goods. They would also need to do separate paperwork for each package that they are exporting. It is possible that they would be permitted to make just one submission for all the packages that they are exporting.
Speeding up trade
It is expected that this would help in making trade quicker. The official has also said that the main aim is to make sure that the process is simpler than before and make it an online one. The official has also said that later on the cap of INR 25,000 may either be removed or increased as well. The official has also said that this particular change would take place in a short span of time. At present this restriction is being applied to goods that are being sent to courier companies that have lobbied the government regarding this issue and others that concern them.
What happens now?
At present these goods are being sent out in the form of samples. In case of some sectors such as garment and handloom, they are exported as proper products. These products are also capable of being provided export incentives that are offered by the Union Commerce and Industry Ministry. This revamp is being done as part of the National Action Plan for Trade Facilitation that India has taken up recently. Arun Jaitley, the Union Finance Minister, released this plan on July 20.
Doing away with caps
At present, there is a cap of INR 25,000 on the purchase. It is expected that this cap would be done away with as well. As per a senior official in the finance ministry, the government has identified several steps to make sure that the e-commerce industry finds it easier to trade. Already in Mumbai, a pilot has been launched to this effect, and soon other customs ports will be brought under the purview of this as well. Normally exports done through these web based marketplaces are dependent on entities such as small packages and couriers.
The matter of paperwork
It also needs to be noted in this context that a significant amount of paperwork is needed in these cases at the ports. The couriers play the role aggregators on behalf of the ECommerce platforms. This means that one courier may need to deal with some packages at the same time. However, unlike the bigger exporters they will only be dealing with a few goods. They would also need to do separate paperwork for each package that they are exporting. It is possible that they would be permitted to make just one submission for all the packages that they are exporting.
Speeding up trade
It is expected that this would help in making trade quicker. The official has also said that the main aim is to make sure that the process is simpler than before and make it an online one. The official has also said that later on the cap of INR 25,000 may either be removed or increased as well. The official has also said that this particular change would take place in a short span of time. At present this restriction is being applied to goods that are being sent to courier companies that have lobbied the government regarding this issue and others that concern them.
What happens now?
At present these goods are being sent out in the form of samples. In case of some sectors such as garment and handloom, they are exported as proper products. These products are also capable of being provided export incentives that are offered by the Union Commerce and Industry Ministry. This revamp is being done as part of the National Action Plan for Trade Facilitation that India has taken up recently. Arun Jaitley, the Union Finance Minister, released this plan on July 20.
