New Delhi, India, August 16 (ANI): The Directorate of Revenue Intelligence (DRI), in a monthlong intelligence-led operation, has dismantled a major network involved in importing Southeast Asian areca nuts into India by falsely declaring them as originating in Bangladesh and fraudulently availing concessional duty benefits under the South Asian Free Trade Area (SAFTA), the Ministry of Finance said in a statement.
The investigation has so far revealed a potential revenue loss of more than Rs. 2,500 crore to the exchequer, while nine people have been arrested in connection with the case.
According to the ministry, syndicates were importing areca nuts into India from Indonesia, Thailand, Malaysia and other Southeast Asian countries and falsely declaring Bangladesh as the country of origin to fraudulently avail concessional duty benefits under SAFTA.
The DRI dismantled the network following a monthlong intelligence-led operation.
Areca nut imports into India attract a basic customs duty (BCD) of 100%. However, eligible areca nuts originating in Bangladesh are fully exempt from customs duty under SAFTA, provided the imports meet the prescribed rules of origin.
According to the ministry, the syndicates falsely declared the areca nuts as originating in Bangladesh to fraudulently avail duty benefits under SAFTA, with the investigation so far revealing a potential revenue loss of more than Rs. 2,500 crore.
“As part of the operation, authorities have seized approximately Rs. 75 lakh in cash and about 160 metric tons of areca nuts.”
The ministry said the license of a customs broker firm responsible for clearing most of the fraudulent areca nut imports has also been suspended.
The case centers on the misuse of the preferential tariff framework under SAFTA, which provides customs duty concessions to eligible goods originating in member countries, subject to compliance with prescribed rules of origin.
The DRI, the country’s apex anti-smuggling intelligence and enforcement agency under the Central Board of Indirect Taxes and Customs (CBIC), investigates cases involving customs duty evasion, commercial fraud and smuggling. (ANI)
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