Delay in customs clearance of Chinese goods will affect e-commerce trade

Mumbai, Ta. 24 June 2020, Wednesday

Delays in clearing customs clearances for goods imported from China have put e-commerce companies at risk of losses. It is learned that the customs department has been instructed to conduct a thorough inspection of raw materials, electronics equipment and finished products from China.

Delays in customs clearance are likely to disrupt the supply of toys, personal care devices in addition to smartphones. Sales of such goods in online retail remain high.

During the lockdown, the operations of e-commerce companies were hit hard. Sources in the e-commerce company said that the protests against Chinese goods were having an impact on trade again as there were reports of improvement in the situation in online retail after the lockdown.

According to 2016 figures, smartphones accounted for 6 per cent of the total gross merchandise value of e-commerce sales, while consumer electronics accounted for 4 per cent. In addition, two percent of the total value was toy.

The delay in customs clearance has raised concerns that the supply chain will be disrupted not only in e-commerce but also in the retail sector as a whole. However, as devices such as smartphones are sold more online than offline, there is a risk of a significant impact on sales, sources said.

Not only is it difficult to get domestic raw materials at the price at which raw materials come from China, but some of the needs of India's industry cannot be met locally.