On April 2, the president of the United States, Donald Trump, signed an executive order that eliminates the exemption of Minimis for imports from China and Hong Kong. | Photo credit: Nathan Howard
The United States’s decision to impose 120 % import taxes in Chinese electronic commerce shipments valued below $ 800, which ends their tax free entry, could open opportunities for Indian sellers online if bottlenecks in banking and customs are fixed fixed fixed exported fixed fixed, according to the trade initiative and investigations of the research agency.
With around 100,000 electronic commerce vendors and $ 5 billion in current exports, India is well positioned to fill the void left by China, partly in personalized products of small lots such as crafts, fashion and household items.
“As of May 2, Chinese electronic commerce shipments below $ 800 to the US will face an import impulse of 120 percent, ending its tax free ticket. This movement is expected to interrupt the Chinese supply chains and open the by for other countries,” the report said.
On April 2, the president of the United States, Donald Trump, signed an executive order that eliminates the exemption of Minimis for imports from China and Hong Kong. “This rule had previously allowed small packages valued up to $ 800 to enter the US.
India to take a step forward
For India, taking advantage of this opportunity requires urgent reforms, since the current commercial system of India is still oriented to large traditional exporters, not small online vendors, according to Ajay Srivastava del Gtri.
RBI rules allow only a 25 percent gap between the declared shipping value and the final payment, which is too adjusted for online exports, where discounts, yields and driving platform rates for higher differences. “Increasing this limit to 100 percent and giving banks flexibility to address legitimate cases would help,” the report suggested, added that bank rates should also be demolished.
The Indian customs system must move online, with 24/7 automated inspections and digital verification lists easy to follow for small exporters, he added. Electronic commerce sellers must also have access to affordable loans.
The report also indicated that shipments sent by Courier, which is common in electronic commerce, do not qualify for key export incentives such as Rodtep, the inconvenience of duty or the anticipated authorization scheme. “This puts the exhibitors online at a disadvantage. Extending the thesis to electronic commerce shipments is essential,” he said.
Posted on April 13, 2025
