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Provider: Arab News
Categories: Business & Economy

India warns Amazon, Flipkart over country of origin rule amid tensions with China

Author: ReutersID: 1602924687638470900Sat, 2020-10-17
08:48 MUMBAI: The Indian government
has warned Amazon.com’s local unit and Walmart’s Flipkart that
sellers on their platforms are not complying with a rule requiring
that a product’s country of origin be specified. A push
for strict enforcement of the rule has come amid tensions between
India and China following a border skirmish which began in June,
and is part of India’s efforts to cut down on Chinese-made
imports. The two e-commerce firms have been given 15
days to explain the lapses or action will be taken against them,
according to an Oct. 16 letter addressed to the companies from the
Ministry of Consumer Affairs and seen by Reuters. It
did not specify what action may be taken, referring only to a legal
act that has provisions for fines. Representatives for
Amazon and Flipkart did not immediately respond to Reuters requests
seeking comment outside regular business hours. In
addition to enforcing the country of origin rule, New Delhi has
also banned 177 Chinese mobile applications since June while
Chinese goods in ports have faced extra scrutiny and delays. Amazon has often faced regulatory challenges in India. Last
year, the government enforced strict rules for foreign investment
in e-commerce which forced the US retail giant to rework its
business structures and strained ties between New Delhi and
Washington. In January, the Competition Commission of
India ordered an investigation into Amazon and Flipkart over
alleged violations of competition law and certain discounting
practices, which Amazon is challenging, according to court
filings. Main
category: Business &
EconomyTags: AmazonFlipkartChinaIndiae-commerce
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