US importers face trading barriers, while DPIIT delays ecommerce policy in India

Wednesday 13 May 2020 15:29 CET | News

DPIIT has announced redrafting plans for its national ecommerce policy due to the COVID-19 pandemic.

According to Inc42, the Department for Promotion of Industry and Internal Trade (DPIIT) redrafted the ecommerce policy in an effort to promote ecommerce, while simultaneously maintain a level playing field for local traders and stores. The redrafted policy proposes to be supervised by an ecommerce regulator or a data regulator, which would be put in place through the Act of parliament. However, although the government submitted the policy to the group of secretaries, the officers have been busy in managing the COVID-19-related work.

Moreover, while India is trying to implement ecommerce guidelines, the US are concerned with the ecommerce policies, which include preferential treatment to domestic players over foreign entities, data localisation requirements, restrictions on cross-border data flow, expanded grounds for forced transfer of intellectual property, and proprietary source code. 

Besides, India doesn’t permit B2C inventory-based online trade except for certain sections like food retailing and single-brand retailing, making US-based  importers experience significant tariff and non-tariff barriers that delay the import of goods to India, especially in sectors like dairy, poultry and specialised equipment, Inc42 concluded.


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Keywords: DPIIT, ecommerce, ecommerce policy, India, US, B2C, importers, COVID-19
Categories: Payments & Commerce
Countries: India
This article is part of category

Payments & Commerce