Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Tuesday, 17 October 2023

DEAR SMT SITHARAMANJI - PLEASE GET INTO TOP GEAR

 Let there be recognition – even if it took 7 years

 

 

That “ E-commerce “ is not much different than “ Ordinary Commerce “ – except that some of the “ processes “ are being carried out “ electronically / digitally “ – with many other processes remaining unchanged

 

Context :

 

Foreign Trade Policy may include a chapter on e-commerce biz  / Mint  /  06 Sept 2022

 

https://www.livemint.com/politics/policy/foreign-trade-policy-may-include-chapter-on-e-commerce-biz-11662403428104.html 

 

 

Extract :

 

The upcoming foreign trade policy is expected to have a chapter dedicated to e-commerce in an acknowledgement of the rising volume of digital transactions in the economy.

 

Recently, the Federation of Indian Export Organisations (FIEO), India’s apex exports body, requested the commerce ministry to provide incentives for e-commerce to bring them on par with conventional merchandise exports in the coming policy

 

FIEO said e-commerce retail exports, which have the potential to have a 10-times multiplier effect over the next three years, need to be provided with at least the same benefits available to the merchandise sector.

 

FIEO said currently export benefits are either unavailable or the process has not been defined, depriving e-commerce exporters of benefits of the goods and services tax regime, rebate of state and central taxes and levies scheme, and remission of duties and taxes on exported products scheme, among others.

 

“The need of the hour is to give e-commerce the same treatment as is available to conventional merchandise shipments. A separate chapter in the FTP should enlist all export benefits available to e-commerce, which should be at par with conventional exports," said Ajay Sahai, CEO and director-general of FIEO.

 

“Such an anomaly should be rectified by adopting the same ceiling for all processes and procedures… There is a need to align all ceilings of shipments for e-commerce with a uniform value. How can one expect a small player to be aware of these different limits?" said Sahai.

 

 

MY  TAKE  :

 

 

 

Ø Defining E – Commerce……………………………………………… [ 14 July 2015 ]

 

Extract :

 

E - Commerce " is nothing more than " Commerce " , where such exchange of values , take place electronically , as opposed to physically . It still remains Commerce , even when perceptions differ

 

 

Hence , regulations / controls / taxation etc that govern E-Commerce should , essentially remain the same as in case of Commerce

 

 

Ditto for FDI in e-Commerce

 

 

Mere elimination of an intermediary ( Distributor / Wholesaler / Dealer / Agent / Stockist etc ) , from the " Supply Chain " , itself cannot be the determining criteria

 

 

 

Ø E - Commerce is Easy Commerce !......................... [ 15 Nov 2015 ]

 

Extract :

 

Not an easy task to define what is E Commerce ( and what is not ), considering all the possible permutations / combinations ( running into LAKHS of them ! ) , of the following elements :

 

 

#    NATURE

 

 

      *  A physical " Product " ( Capital Goods / FMCG / Consumables / Perishables )

 

      *  A virtual " Service "    ( Medical advice / Legal advice / Consultancy / Software etc )

 

 

 

#    GEOGRAPHIC   SPREAD

 

 

     *   Across National boundaries    ( International Trade )

 

     *   Across State boundaries        ( within India )

 

     *   Across Municipal boundaries   (within a State )

 

 

 

#    SUPPLY- CHAIN   /  INTERMEDIARIES

 

 

     *   Mfr  >  Distributor  >  Dealer  >  Retailer  >  Buyer

 

     *   Mfr  >  Buyer

 

     *   Any disintermediation in the above chain

 

 

 

#     ORDER  PLACEMENT  /  ACCEPTANCE

 

 

     *   In a physical location ( Shop / Store / Office / Factory / Home )

 

     *   In a virtual location   (Web site/Mobile App/SMS/ Email / Phone / Video Conference  )

 

 

 

#     DELIVERY

 

 

     *   Physically in a Shop / Store etc where Buyer collects / picks-up from shelf

 

     *   Delivered to Buyer's location, thru Delivery Boy

 

     *   Delivered to Buyer's location, using a Drone

 

     *   Delivered to Buyer on his home-based 3D Printing Machine  ( using internet )

 

 

 

#    PAYMENT

 

 

     *   Cash against delivery

 

     *   Pre-paid / Post-paid Cheque

 

     *   Credit / Debit Cards across counter

 

     *   Credit / Debit Cards thru online Payment Gateways

 

     *   Through Mobile Wallets

 

     *   Electronic Bank Transfer

 

     *   Using Virtual Currency like Bit-Coins

 

     *   Barter of Goods or Services

 

 

 

#    FOREIGN   INVESTMENTS

 

 

    *   FDI in Manufacturing / Supply Chain / Payment Gateways - Apps-  Mobile Wallets 

 

    *   FDI in Web sites like Amazon - Flipkart - Alibaba - Snapdeal etc ( What percentage ? )

 

 

 

Can you think of any other " Elements " that I have forgotten  ?

 

 

In any case , given the fact that there can be lakhs ( if not millions ) of permutations / combinations of the above-mentioned elements , one must not attempt to define what is E Commerce ( and what is not ) , by inclusion or exclusion of these elements in definition

 

 

Such a complex definition would lead to thousands of court cases involving Governments and each court interpreting the definition , differently  !

 

 

The only definition that would satisfy ALL  of these permutations / combinations , is :

 

 

Any exchange of " Value " between any number of parties , involving ,

 

 

>  Goods or Services , on the part of one party

 

 

with,

 

 

>  Money or its equivalent consideration , on the part of a second party

 

 

with or without using,

 

 

>  Intermediary services , on the parts  of any other parties

 

 

Dear Dr Ajay Sahaiji, 


{  Director General & CEO / ajaysahai@fieo.org  }

 

 

Hindustan Times ( 16 Nov 2015 ) quotes Commerce Minister Nirmala Sitharaman as follows :

 

 

"  The Government is working on the definition of E Commerce to clear the air over issues such as taxation and

 

   Foreign Investment

 

   We have got the inputs from States . We are in the process of putting it all together  "

 

 

I hope Smt Sitharamanji accepts your request  :

 

“ The need of the hour is to give e-commerce the same treatment as is available to conventional merchandise shipments “

 

 

 

With regards,

 

Hemen Parekh

 

hcp@RecruitGuru.com  /  06 Sept 2022

 

 

 

Related Readings :

 

Ø If You cannot lick them ; Join them……………………….[ 24 July 2015 ]

Ø Who will obsolete whom ?......................... ……….[ 20 Aug 2015 ]

 

CC { FIEO Office Bearers }:

 

Mr Vikas Mittal
Joint Director  /  vikasmittal@fieo.org

 

Mr Ashish Jain
Dy Director General  /  ashishjain@fieo.org

 

Mr Naval Baveja 
Jt Dy Director General  /  nbaveja@fieo.org

 

Mr. A P Srivastava 
Jt Dy Director General  /  apsrivastava@fieo.org

 

Mr Nitesh Mishra
Jt Dy Director General  /  niteshmishra@fieo.org

 

Mr Prashant Seth
Jt Dy Director General  /  prashantseth@fieo.org

No comments:

Post a Comment