DRI detected 433 import misrepresentation cases worth Rs 866 crore in FY21- QHN

In 2020-21 (FY21), the Directorate of Revenue Intelligence (DRI) detected 433 cases of misrepresentation of imported goods involving a customs duty amount of Rs 866 crore, 255 per cent higher than in FY20, a report released by Finance Minister Nirmala Sitharaman on Monday said. Misrepresentation accounted for nearly 60 per cent of total import fraud cases in FY21.

FM Sitharaman released the “Smuggling in India Report 2021-22” on DRI’s 65th Foundation Day in New Delhi. It said that in FY20, the agency detected 173 cases of misrepresentation amounting to duty worth Rs 332 crore.

Misrepresentation may be done in describing the product, its value, quantity, unit quantity code, end-use or tariff heading.

“Such misdeclaration is committed with the mala fide intent of evasion of customs duty,” the report added. The government charges customs duty on transporting goods across the country’s international borders.

The misrepresentation was significant in commodities like electronics, electrical accessories, auto components and chemicals and new-age technology products.

The misrepresentation was also done by wrongly classifying certain imported parts.

“…leading motor vehicle manufacturer was wrongly classifying certain imported parts of motor car engines to avail reduced duty benefits. Duty evaded is approximately Rs 70 crore,” the report said. It further highlighted cases where importers “mis-declared the description and classification” of chemicals to avoid mandatory licenses and NOC from the Central Drugs Standard Control Organisation (CDSCO).

In exports, DRI detected 12 cases of misrepresentation to avoid export duty or restrictions.

DRI is the apex body of Indian customs in the field of anti-smuggling and comes under the Ministry of Finance.