| Date: |
14-03-2000
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| Notification No: |
Customs Circular No 19/2000
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Alert notice regarding misuse of bond facility
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Alert notice regarding misuse of bond facility
Circular No. 19 dated 14th March 2000
It is brought to the notice of the
field formations that an alleged fraud has been committed at Chennai wherein a
CHA has defrauded the department by way of evasion of Customs duty by misusing
the bond facility.
2. Available report
indicates that the CHA would clear the imported raw material from Customs on the
pretext of bonding. The raw material would then be taken to the CHA premises
wherein they would be substituted with material of no value. The imported
material would then be sent to the importer with fabricated B/ E's for home
consumption. Based on the fabricated Bill of Entry the importer would take
MODVAT credit. Meanwhile the substituted material (packed in original packing)
would be deposited in the warehouse for bonding.
3. Since the
aforesaid case involves substantial amount of revenue, the matter has been
referred to CBI for a thorough enquiry. The field formations may like to
undertake and initial stock challenge of all bonded goods lying in the public
bonded warehouses beyond 1 year and also to direct the bond section of Customs
House, to reconcile the records with the record of the warehouse.
4. SIIBs and
Preventive Branches may also be asked to profile the high risk bonded goods/
importers and to selectively draw out samples of suspect cases in order to rule
out similar frauds.
5.
The Board may kindly be kept informed of the outcome of this exercise.
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