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| 2 minutes read

2 minutes read

Shien and Club Factory In Trouble For Under-Billing Shipments

| Published on June 26, 2019

“ORDER SHIPPED”… Two very simple words that can make any shopper’s heart race faster with excitement and anticipation. The level of patience we have is tested when we eagerly wait for our online shopping items to get delivered at our doorsteps. Among the many online shopping outlets, Shein and Club factory have been successful to engage plenty of consumers with their plethora of product range.

But lately the wait time for order delivery of particularly these two websites has increased and you will be amazed to know that it is the Mumbai customs that is causing this delay. But who is really at fault here and what is it all about? Let’s find out.

Shein

According to Mumbai Customs Department, they have seized around 500 parcels as well as a warehouse of Shein at the Mumbai airport. Reason? Well, these Chinese websites are cleverly dodging to pay the customs duty & taxes by presenting their B2C parcels as B2B and as free gift samples. Chinese e-commerce firms employ importers such as Sino India e-tail and Globemax to bring in goods ordered by their customers into India in bulk, allowing them to bypass the cumulative 42.08% duty levied on individual imports.

While the response from Club factory is still awaited, Shein officials have stated to The Economic Times that it had always abode by the laws and paid all our taxes correctly and in a timely manner.

The clampdown may not just end at Mumbai but implied on other customs port of the country as well such as Chennai, Kolkata & Delhi.

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