The new draft e-commerce policy has proposed to ban all gifts shipped to India through e-commerce route to put a check especially on Chinese e-commerce platforms misusing the provision.

In the much awaited draft e-commerce policy released on Saturday, the commerce and industry ministry has mandated that all product shipments from other countries to India must be channelized through the customs route.

"In view of the misuse of the ‘gifting’ route, as an interim measure, all such parcels shall be banned, with the exception of life-saving drugs. India Post must conduct due diligence on “from and to" shipping entities and addresses and set thresholds in the shipment booking system to eliminate misuse of the Foreign Trade (Development & Regulation) Act, 1992," said the draft policy, which is now open for public consultation.

Mint reported on 4 January that the Mumbai Customs office has told its officers at the Airport Special Cargo Commissionerate to check such “misdeclaration and smuggling of goods imported through couriers".

The draft e-commerce policy also mandated all e-commerce sites/apps available for download in India to have a registered business entity in India as the importer on record or as the entity through which all sales in India are transacted. "This is important for ensuring compliance with extant laws and regulations for preventing deceptive and fraudulent practices, protection of privacy, safety and security," it said.

Indian customs regulations currently allow tax exemptions on gifts sent to relatives from Indians living abroad for up to ₹5,000. However, China-based online e-commerce platforms, such as Club Factory, Shein and AliExpress, have been misusing the rules and shipping cheaper products to Indian customers as gifts, thus avoiding customs duty and goods and services tax.

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