In a major crackdown on Chinese e-tailers, Mumbai customs has seized around 500 parcels of apparel and lifestyle e-tailer Shein and sealed its warehouse situated in the city.
As per reports, the department has found them undervaluing and wrongly declaring goods to avoid customs duties.
The seizure order against Shein states that the packing of goods looks like of B2C model but the clearance is being sought for B2B model, reported ET.
Apart from Shein, the customs official also seized a small number of parcels from Club Factory’s local unit Globemax.
The move was part of the Indian government’s strict action against all Chinese e-tailers who are allegedly escaping custom duty and taxes in the name of duty-free gifts and samples.
To put a check on this, the government had asked the post office and courier firms to keep an eye on shipments from China.
Chinese e-tailers employ importers such as Sino India Etail and Globemax to bring in goods ordered by their customers into India in bulk to avoid cumulative 42.08% duty levied on individual imports.
Presently, India exempts items valued up to Rs 5,000 from all taxes to allow Non-Resident Indians to send gifts to their families.
Responding to the development, Shein said to ET that it had always abided by the laws and paid all the taxes correctly and timely. Reaction from Club Factory on the matter is still awaited.