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

Amazon has often faced regulatory challenges in India. (Reuters)
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Updated 17 October 2020

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

  • A push for strict enforcement of the rule has come amid tensions between India and China
  • New Delhi has banned 177 Chinese mobile applications since June

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.


10 things you need to know on Tadawul today

Updated 01 December 2020

10 things you need to know on Tadawul today

Here are a few things you need to know as Saudi stocks start trading on Tuesday.

1) Saudi Aramco started paying Q3 2020 cash dividend at SAR 0.352 ($0.0939) a share, to shareholders of record on Nov. 9.

2) Aramco signed six memoranda of understanding (MoUs) within the framework of expansion, which includes plans for new international partnerships and establishing companies through an Industrial Investment Program.

3) AXA Cooperative Insurance Co. announced that AXA Group decided to sell its insurance operations in the Gulf region.

4) Saudi Investment Bank’s (SAIB) shareholders approved mandating the board of directors to extend the maximum period within which the bank can retain the shares acquired from JP Morgan International Finance and Mizuho Bank Ltd as treasury shares.

5) Citigroup Saudi Arabia and Goldman Sachs Saudi Arabia announced receiving a notification from NatWest Markets Plc and Banco Santander S.A. about the proposed secondary sale of up to nearly 116 million ordinary shares, or 5.6 percent of Saudi British Bank (SABB).

6) Alinma Tokio Marine Co. received a claim notice of Offshore Oil Engineering Co. regarding an accident when a package of underwater cables owned by Saudi Aramco was damaged when a pipeline near it was being removed on June 25, 2019.

7) National Building & Marketing Co. signed a memorandum of understanding to fully acquire Ajeej Steel Manufacturing Co. for SAR 180 million.

8) Jadwa Investment announced that Jadwa REIT Saudi Fund invested SAR 450 million in a closed-ended Shariah-compliant private real estate investment fund.

9) Baazeem Trading Co. received letters from the General Authority of Zakat and Tax (GAZT) seeking adjustment of Zakat reports from 2014 to 2018 and pay differences of SAR 8.57 million.

10) Crude oil prices fell on Tuesday morning. Brent crude slipped 1.2 percent to $47.59/bbl, while WTI crude lost 0.9 percent to $44.95/bbl.

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