INDONESIA
Since April 2020
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Ministry of Finance Regulation No. 115/PMK.06/2020
The Ministry of Finance Regulation No.115/PMK.06/2020, which replaces the Ministry of Finance Regulation No. 65/PMK.06/2016 mandates foreign entities to establish an Indonesian limited liability company before utilising the state-owned property for undertaking the public procurement of the infrastructure projects (including telecommunication infrastructure) under the public-private partnership scheme. This requirement has already been in place since 2016. Nevertheless, this represents a liberalisation for foreign companies in Indonesian public procurements since it previously required the prioritisation of domestic service suppliers.
Coverage Telecommunication infrastructure
INDIA
N/A
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
India does not implement a de minimis threshold, which refers to the minimum value of goods below which customs do not charge duties. Although the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010 refer to "low-value dutiable consignments" as those with an invoice value below INR 100,000 (approx. USD 1,000) for imports (excluding documents, gifts, and samples), the specific de minimis threshold applied in the country remains unclear.
Coverage Horizontal
Sources
- https://web.archive.org/web/20241126023845/https://courier.cbic.gov.in/ECCS/regulation/2022/Updated%20ECCS%20Regulation%20with%20forms.pdf
- https://web.archive.org/web/20240303200229/https://zonos.com/docs/guides/de-minimis-values#de-minimis-values-per-country
- https://web.archive.org/web/20231218203505/https://zhenhub.com/blog/customs-duty-de-minimis-values-by-country-2022/
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INDIA
Since July 2020
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Consumer Protection (E-Commerce) Rules, 2020
The Consumer Protection (E-Commerce) Rules, 2020, provides a comprehensive framework for consumer protection that also applies to online transactions. The Rules introduced in 2020 established several requirements, such as displaying requirements for the name and details of sellers, details of returns, refunds, exchanges, warranties, and guarantees. In addition, requires sellers on the platform to provide an undertaking affirming the accuracy of descriptions, images, and other content of the goods or services on the platform, including that they correspond directly with the appearance, nature, quality, and purpose.
Coverage E-commerce sector
INDIA
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
India has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
INDIA
Since 2000
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
India has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
INDIA
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
India has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
INDIA
Since March 2016
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Restrictions on encryption standards
License Agreement for Unified License
According to Condition 37.1 of the License Agreement for Unified License, issued by the Department of Telecommunications, Ministry of Communications and Information Technology, Internet Service Provider licensees are prohibited from employing bulk encryption equipment in their networks. The licensor or officers designated for this purpose have the authority to evaluate any encryption equipment connected to the licensee's network. However, the licensee remains responsible for ensuring the protection of communication privacy and preventing unauthorised message interception.
Coverage Internet Service Provider (ISP)
INDIA
Since June 2000, entry into force in October 2000, last amended in August 2023
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Restrictions on encryption standards
Information Technology Act, 2000
According to Section 84A of the Information Technology Act, the Government may, for secure use of the electronic medium and for the promotion of e-governance and e-commerce, prescribe the modes or methods for encryption. However, no rules have been introduced under this section.
Coverage Horizontal
Sources
- https://web.archive.org/web/20231204123614/https://eprocure.gov.in/cppp/rulesandprocs/kbadqkdlcswfjdelrquehwuxcfmijmuixngudufgbuubgubfugbububjxcgfvsbdihbgfGhdfgFHytyhRtMjk4NzY=
- https://web.archive.org/web/20230517033135/https://www.mondaq.com/india/social-media/1088968/intermediary-liability-in-india--moving-goalposts
- https://web.archive.org/web/20231210112408/https://www.forbesindia.com/article/iim-calcutta/indias-tryst-with-intermediary-liability-from-2000-to-2021-changing-paradigms-in-the-social-media-age/69121/...
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INDIA
Since April 2013, last amended in October 2020
Pillar Online sales and transactions |
Sub-pillar Maximum foreign equity share for investment in the e-commerce sector
Consolidated Foreign Direct Investment (FDI) Policy Circular of 2020
Since the implementation of the Consolidated FDI Policy Circular of 2016, last amended by the Consolidated FD) Policy Circular of 2020, India permits fully owned FDI in business-to-business (“marketplace-based”) electronic commerce, i.e. "providing an information technology platform by an e-commerce entity on a digital & electronic network to act as a facilitator between buyer and seller." However, India prohibits foreign investment in business-to-consumer (or “inventory-based”) electronic commerce, also defined as "e-commerce activity where the inventory of goods and services is owned by an e-commerce entity and is sold to the consumers directly".
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
When a marketplace e-commerce entity exercises ownership or control over the inventory, the business is categorised into the inventory-based model. Additionally, India implemented regulations that expressly prohibit subsidiaries of foreign-owned marketplace-based electronic commerce sites from selling products on their parent companies’ sites. The rules also prohibit exclusivity arrangements by which electronic commerce retailers can offer a product on an exclusive basis.
The only exceptions for FDI in inventory-based electronic commerce are for food-product retailing and single-brand retailers that meet certain conditions, including the operation of physical stores in India. According to Section 5.2.15.3 of the Consolidated FDI Policy Circular of 2020, retail trading through e-commerce can also be undertaken before opening physical stores, subject to the entity opening physical stores within two years from the start of online retail. Overall, it is reported that these narrow exceptions limit the ability of many electronic commerce service suppliers to serve the Indian market.
Coverage E-commerce sector
Sources
- https://web.archive.org/web/20220927051701/https://dpiit.gov.in/sites/default/files/FDI_Circular_2016(1).pdf
- https://web.archive.org/web/20230131002741/https://dpiit.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020_0.pdf
- https://web.archive.org/web/20230919071254/https://ustr.gov/sites/default/files/2022%20National%20Trade%20Estimate%20Report%20on%20Foreign%20Trade%20Barriers.pdf
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INDIA
Since April 2013
Pillar Online sales and transactions |
Sub-pillar Licensing scheme for e-commerce providers
Law No. 18 of 2013 on the New Companies Act
According to Section 2 of the Companies Act of 2013, foreign companies relating to B2B, B2C e-commerce, data interchange and other digital supply transactions, web-based marketing, database services, online services such as telemarketing, telecommuting, telemedicine, education and information research and all related data communication services, even when not incorporated in India, should register in India when they are engaged in business in the country.
Coverage Digital services
INDIA
Since October 2011
Since April 2018
Since August 2014
Since April 2018
Since August 2014
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Reserve Bank of India Processing and Settlement of Export related receipts facilitated by Online Payment Gateways – Enhancement of the Value of Transaction
Storage of Payment System Data Directive
Reserve Bank of India Notification on Security Issues and Risk mitigation measures related to Card Not Present (CNP) transactions
Storage of Payment System Data Directive
Reserve Bank of India Notification on Security Issues and Risk mitigation measures related to Card Not Present (CNP) transactions
According to Art. 2 of the Processing and Settlement of Export-related receipts facilitated by Online Payment Gateways from 2011, the Reserve Bank of India restricts export-related payments for goods and services through online payment gateways. It is reported that PayPal had to limit payments for export-related payments above 500 USD. From July 2013, this limit has been increased to USD 10,000.
In addition, according to Section 2 of the Storage of Payment System Data Directive, all payment data held by payment companies should be held in local facilities. Furthermore, according to section 5 of the directive, data must be stored only in India after processing and should be deleted from systems abroad and brought back to India no later than 24 hours after processing. Any subsequent activity, such as settlement processing after payment processing done outside India, must be undertaken on a real-time basis, pursuant to which the data must be stored only in India. However, The RBI has clarified that banks, especially foreign banks, can continue to store banking data abroad but in respect to domestic payment transactions, the data must be stored only in India.
Following a negative response from international payment companies such as MasterCard, Visa, and American Express, the RBI has proposed (in "Frequently Asked Questions" of its website) to ease this restriction so as to allow payment firms to store data offshore as long as a copy was kept in India. The RBI has further clarified that for cross-border transaction data consisting of a foreign component and a domestic component, a copy of the domestic component may be stored abroad if required.
In addition, according to Section 2 of the Storage of Payment System Data Directive, all payment data held by payment companies should be held in local facilities. Furthermore, according to section 5 of the directive, data must be stored only in India after processing and should be deleted from systems abroad and brought back to India no later than 24 hours after processing. Any subsequent activity, such as settlement processing after payment processing done outside India, must be undertaken on a real-time basis, pursuant to which the data must be stored only in India. However, The RBI has clarified that banks, especially foreign banks, can continue to store banking data abroad but in respect to domestic payment transactions, the data must be stored only in India.
Following a negative response from international payment companies such as MasterCard, Visa, and American Express, the RBI has proposed (in "Frequently Asked Questions" of its website) to ease this restriction so as to allow payment firms to store data offshore as long as a copy was kept in India. The RBI has further clarified that for cross-border transaction data consisting of a foreign component and a domestic component, a copy of the domestic component may be stored abroad if required.
Coverage Financial sector
Sources
- https://web.archive.org/web/20230805235033/https://ustr.gov/sites/default/files/2014%20NTE%20Report%20on%20FTB.pdf
- https://web.archive.org/web/20220930071009/https://dot.gov.in/sites/default/files/itbill2000_0.pdf
- https://web.archive.org/web/20221209090313/http://techcrunch.com/2014/08/25/new-restrictions-on-online-billing-in-india-may-impact-international-e-commerce-companies/
- https://web.archive.org/web/20190406093244/http://www.uncitral.org/uncitral/en/uncitral_texts/electronic_commerce/1996Model_status.html
- https://web.archive.org/web/20190204205004/http://www.uncitral.org/uncitral/en/uncitral_texts/electronic_commerce/2001Model_status.html
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INDIA
Since March 2021
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
NPCI Notification: Standard Operating Procedure (SOP) – Market Share Cap for Third Party Application Providers (TPAP), NPCI/UPI/SOP-01/2020-21
In accordance with NPCI Notification: NPCI/UPI/SOP-01/2020-21, the National Payments Corporation of India (NPCI), a state-owned entity, introduced a 30% market share cap for foreign electronic payment service providers processing online payments via India’s Unified Payment Interface (UPI), which is owned and operated by NPCI. Foreign digital payment companies were required to comply with this 30% market share limit by January 2023.
Coverage Electronic payment service suppliers
Sources
- https://web.archive.org/web/20210505213737/https://www.npci.org.in/PDF/npci/upi/circular/2021/standard-operating-procedure-sop%E2%80%93market-share-cap-for-third-party-application-providers-tpap.pdf
- https://web.archive.org/web/20240601173405/https://economictimes.indiatimes.com/tech/technology/upi-transactions-scale-14-billion-peak-in-may/articleshow/110625651.cms?from=mdr
- https://web.archive.org/web/20221105171959/https://www.livemint.com/news/india/npci-defines-operating-norms-for-upi-market-cap-11616751545305.html
- https://web.archive.org/web/20240329151539/https://ustr.gov/sites/default/files/2023-03/2023%20NTE%20Report.pdf
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INDIA
Since June 2012
Pillar Quantitative trade restrictions for ICT goods and online services |
Sub-pillar Other import restrictions, including non-transparent/discriminatory import procedures
Import Export Classification, Indian Trade Classification – Harmonized System (ITC-HS) Code and Import Policy 2012
According to the Import Export Classification, Indian Trade Classification – Harmonized System (ITC-HS) Code, and Import Policy 2012, certain goods require special permission or licensing in order to be imported. Selected consumer goods, including radio and TV broadcast transmitters and communication jamming equipment, are qualified as licensed/restricted items that can only be imported after obtaining an import license from India’s Directorate General of Foreign Trade (DGFT). However, it has been reported that India is increasingly using import licenses at the discretion of the authorities to limit imports of sensitive products. In addition, it is reported that the licensing system is not automatic as it involves delays, and authorised quantities can be lower than requested. Licenses are granted to actual users.
Coverage Selected electronic items (e.g. HS Codes 85255010, 85255020, 85255040, 85255090, 85261000, 85269110, 85269130, 85269140, 85269150, 85269190, 85291011, 85291021, 85291091, 85299010, 85437091)
Sources
- https://web.archive.org/web/20240701115627/https://xn--m1bdba5a7gresc7dsa.xn--11b7cb3a6a.xn--h2brj9c/writereaddata/files/Foreign%20Trade%20Policy%20(2012)%20(w_e_f_%2005_06_2012)%20(651%20MB).pdf
- https://web.archive.org/web/20220305184557/http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
INDIA
Since April 2015, as amended in March 2018
Pillar Quantitative trade restrictions for ICT goods and online services |
Sub-pillar Other import restrictions, including non-transparent/discriminatory import procedures
Foreign Trade Policy (2015-2010)
As per the Foreign Trade Policy, 2015-2020, India has distinguished between goods that are new and those that are second-hand, remanufactured, refurbished or reconditioned. The country allows the import of second-hand capital goods by end-users without an import license, provided the goods have a residual life of five years. In addition, users are required to present the certificate of an Indian chartered engineer attesting that such spare parts have at least 80% residual life of the original spare part, while second-hand domestic capital goods are not subject to this requirement. Problems reported by industry representatives include excessive details required in the license application, quantity limitations set at specific part numbers, and long delays between application and license issuance. According to a 2018 amendment (DGFT Notification No. 58/2015-2020), second-hand goods imported for repair, refurbishment, reconditioning or re-engineering purposes can be exported back under the customs notification provided that the waste generated during the repair or refurbishment of the imported items is treated in accordance with national environmental laws/regulations/rules/regulations/standards.
Coverage Refurbished computer spare parts
Sources
- https://web.archive.org/web/20211227075438/https://cpcb.nic.in/uploads/hwmd/June_Amendemnet_HOWM.pdf
- https://web.archive.org/web/20190212220509/https://www.eximguru.com/notifications/amendment-in-para-2-31-82672.aspx
- https://web.archive.org/web/20241216171302/https://www.teamleaseregtech.com/updates/article/3343/dgft-amends-import-policy-on-second-hand-goods-imported-for-the-purpose-of-repair-re-furbishing-re-cond...
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INDIA
Since July 2020
Pillar Quantitative trade restrictions for ICT goods and online services |
Sub-pillar Other import restrictions, including non-transparent/discriminatory import procedures
Notification No. 22/2015-2020
On 30 July 2020, the Indian Directorate General of Foreign Trade, through Notification No. 22/2015-2020, amended the import policy of colour television sets from "Free" to "Restricted". According to the notification, a license shall be required for imports of these TV sets, including smart TVs.
Coverage Smart TVs
Sources
- https://web.archive.org/web/20230118030837/https://content.dgft.gov.in/Website/dgftprod/b1b48bd4-bcda-4a71-b96c-5ea3c3306760/Notification%2022%20English.pdf
- https://web.archive.org/web/20241128003707/https://www.globaltradealert.org/intervention/80549/import-licensing-requirement/india-imports-of-television-sets-restricted