Page 98 - DRI ANNUAL REPORT EBOOK

The Foreign Trade Policies provide a framework for increasing export of goods and services as well as generation of employment and increasing value addition in the country. Foreign Trade Policy, 2015-20 takes forward these objectives in keeping with the “Make in India” vision of our Hon’ble Prime Minister. The focus of the government is to support both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business.’ To this end, in the FTP 2015-20 the government introduced new export promotion schemes such as Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) by merging a plethora of existing schemes and further strengthened/ liberalized existing schemes, mainly Advance Authorization Scheme (AA), Duty-Free Import Authorization (DFIA) Scheme, Duty Drawback of Customs/Central Excise Duties/Service Tax, EPCG Scheme and EOU/EHTP/STP & BTP Schemes.
However, introduction of each such measure of the government to relax regulatory controls and improve the ‘ease of doing business’ invariably attracts unscrupulous elements too who read this motto as ‘ease of evading taxes’ and try to exploit the vulnerabilities which arise due to such relaxations / liberalizations. Such attempts at exploitation of system vulnerabilities are led by masterminds who first minutely study the system of regulations / controls and then carry out well planned multi-layered attempts at tax evasions across the country. DRI is mandated, as in many other spheres, to counter such masterminds in their attempts at mis-using the export promotion schemes by exposing their modus-operandi’s, and thereby protect the exchequer.
As with the earlier Foreign Trade Policies, FTP 2015-20 has also benefited immensely by the targeted intelligence based unobtrusive operations of DRI in that the mis-use of export promotion schemes was checked, evasions were detected, exchequer was protected and some degree of deterrence was also achieved with the culprits being brought to book and many being prosecuted by DRI.
Cases booked by DRI w.r.t misuse of Export Promotion Schemes during the period 01.04.2015 to 31.03.2020
S. No.
Export Promotion Scheme
No. of Cases
Duty Evasion Detected (Rs.)
Recoveries (Rs.)
1
Advance Licence/DEEC Scheme
411
43,18,75,92,666
22,23,18,92,923
2
Duty Free Import Authorisation (DFIA) Scheme
15
16,49,22,213
8,68,50,00
3
EOU/EPZ/SEZ/EHTP/FTWZ Scheme
35
1,11,32,14,156
7,36,51,516
64 SMUGGLING IN INDIA REPORT 2019-20