Country of origin rules for e-commerce players likely to be announced soon

The central government is like to announce the date for implementing the country of origin rules for the goods sold through e-commerce firms like Amazon, Flipkart and others in the next 10-12 days. As per the sources, no more meetings will be held with the stakeholders as the consultation process is over.

New Delhi:The Central government is likely to announce the date for implementing the country of origin rules for the goods sold through e-commerce players like Amazon, Flipkart, Snapdeal and others in next 10-12 days as the consultation process with stakeholders is already complete and there is no plan to hold another round of discussion with e-commerce companies, ETV Bharat has learnt.

The ministry of commerce held an extensive discussion with 30 odd e-commerce players this Wednesday through a video link. The video conference was attended by players like Amazon, Flipkart, Snapdeal, Jio, Shoppers Stop, Croma, Paytm, Grofers, Tata Cliq, Lenskart, HomeShop 18, Pharmeasy, 1MG, Medikabazar, food delivery firms like Zomato, Swiggy among others.

“No more meetings will be held with the stakeholders, the consultation process is over. Now the government will decide the date for implementation,” said a source familiar with the matter.

The issue of declaring the country of origin for the products imported in the country has been pending for quite some time and it was one of the reasons behind India’s decision not to join China-backed Regional Comprehensive Economic Partnership agreement last year.

In global trade talks, India has been demanding to fix the rules for deciding the country of origin as due to global supply chains it is not easy to determine the country of origin of a product.

Indian authorities have advocated the adoption of the rule of 35% value addition in a country for the product to qualify as being produced in that country.

However, countries like China have opposed it as it permits Chinese manufacturers to supply semi-finished goods to a third country like Thailand, Vietnam or even route them through Hong Kong. And with little value addition in these countries, the product can be further exported as a non-Chinese good.

Though the issue is long pending and is also under discussion at the global trade body - the World Trade Organization (WTO) but it assumed urgency following a violent face-off between Indian and Chinese soldiers in Galwan Valley in Ladakh last month as it turned public sentiments against China and the call to boycott Chinese products grew louder in the country.

“The issue involves discussion with the ministry of consumer affairs as well as packaged goods fall under their purview but if you look at the broad direction then they have also clearly indicated that it will be done,” said the official.

The official, however, clarified that if it is to be implemented from early next month then a decision on the issue will have to be announced in next 10 days or so.

“E-commerce players need some time to implement it so logically it should be announced in next 10 days as the companies also need at least 10-15 days time to implement it,” the official told ETV Bharat.

In the first phase, the government will make it mandatory for the listing of new products on e-commerce platforms to clearly depict the country of origin so that consumers are aware of the country of origin of the products purchased by them.

In the second phase, the government will implement the country of origin rules for existing listing also but the e-commerce companies and sellers will have more time to implement the rule for existing listing.

“The order will not be applicable for the goods that are there in warehouses of e-commerce players or in transit. Companies will have more time to comply with the new rules for an existing listing,” said the official.

(Article by Krishnanand Tripathi)