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Two held for Rs 12 cr customs duty evasion.


Date: 11-10-2017
Subject: Two held for Rs 12 cr customs duty evasion
Ahmedabad: Directorate of revenue intelligence (DRI) has nabbed two persons in connection with a Rs12 crore customs duty evasion. The duo, identified as Sarfaraz Khan Pathan and Rafeuddin Kadari, both from the city, had imported betel nuts and black pepper from Indonesia and Vietnam respectively at Mundra port by declaring it as Sri Lankan import to unduly avail the benefits of India-Sri Lanka Free Trade Agreement, said officials on Tuesday.

DRI officials said that Pathan, a resident of Juhapura area of the city, was a repeated offender of smuggling and he was booked by the agency in 2012 under COFEPOSA (Conservation of Foreign Exchange and Prevention of Smuggling Activities Act). Whereas Kadari, a resident of Mirzapur, helped Pathan in this allged case of duty evasion to the tune of Rs12 crore.

"The duo were engaged in imports of betel nuts of Indonesia and black pepper of Vietnam by routing them through Sri Lanka and misdeclaring them as of Sri Lankan origin, to unduly avail the benefits of India-Sri Lanka Free Trade Agreement by using three dummy Importer-Exporter Codes (IEC) in the names of T G Enterprise, R M International and M M Enterprise," said a DRI official.

He added, "If the betel nuts are imported from Sri Lanka, then no basic customs duty would be levied. But if it is imported from Indonesia then the basic customs duty of 100% would be levied. Likewise, the basic customs duty would be 8% if black pepper is imported from Sri Lanka as against 70% if the same is imported from Vietnam." The DRI team from Ahmedabad conducted searches in the premises of the accused in the city and also at the premises of IEC holders in Mumbai.

Source: timesofindia.indiatimes.com

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