Page 87 - DRI ANNUAL REPORT EBOOK

The export frauds can be broadly categorised as follows
Overvaluation of export goods
Undervaluation of export goods
Misdeclaration and Misclassification
Misuse of IGST refund scheme
Misuse of Export Promotion Schemes – MEIS,SEIS,EPCG, Advance Authorisation, EOU/SEZ/EPZ, Drawback.
Misdeclaration and Misclassification
• Inflating the invoice value of goods being exported to indulge in Trade based money laundering (TBML) resulting in illegal remittances into the country.
• Exporting items of very low market value or no value to avail various ineligible export benefits.
• Under invoicing of goods exported
• Exports to related companies at a much lesser value. • Trade based money laundering.
• Misdeclaration of the description of export goods.
• Classification of the goods under wrong tariff heading to avail higher rate of export incentives such as Drawback, MEIS, SEIS etc.
• Accumulation of IGST credit from fake transactions.
• Encashment of accumulated IGST credit as cash refund on exports.
• Availing of export benefits by wrong description/declaration of goods and services
• Diversion of duty free imports.
• Non fulfilment of export obligations.
• Non realisation of export proceeds.
• Under invoicing of goods/products
• Under weighment of goods/products
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