Recently ordered products from Shein India or Club Factory? Here is the reason you may or may not be able to receive it.
Mumbai Custom has seized nearly 500 parcels of Shein India Retail and Club Factory. The company has alleged that it used to reduce the value of imported goods in order to avoid tax. SheinIndia Chinese apparel and lifestyle e-teller is Shein’s official Indian seller. The Mumbai custom has received information that officials have sealed the warehouse of the company in connection with irregularities and tax deduction. Dozens of e-commerce companies in China impose a low price tag on their tax department. This custom-made operation is part of an effort to curb Chinese e-commerce imports on the Mumbai Courier Terminal.
Officials said that after taking action against the Chinese e-commerce sellers, these companies became more active, who used to call duty-free ‘gifts and samples’ to shipment to avoid tax. According to the Cesar order against Shein India and club factory, “According to the packaging of goods, it looks like a B2C-Business-to-consumer model, but B2B means the clearance for the business-to-business model.” In addition to Shein India Retail, some parcel of Globemax Commerce India has also been seized. Globex is also the local unit of another Chinese e-tailer “club factory.”
Chinese e-commerce firms send the wholesale order of their Indian customers through importers like Shinto India ETel and Globamax. As such, they do not have to pay 42.08% of the duty on personalized import. They bring goods from the CB-13 low-value route, which does not ask for much information about tax. Shein India said in response to media questions, “The company has always followed the laws of India. We have given all our taxes in the right way and time.”
“It has also been found that brands help in the distribution of Shein Clothing and Accessories and have been doing business for some years.” At the same time, Globemmax Commerce India did not respond to the media’s questions. A top custom official from Mumbai said that these firms were a helpful organization of Chinese e-commerce companies and they used to save tax by showing the low values of products.