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Smuggling in India Report 2024-25 82

7.41%

41%
7.41%
China
3.70%
Malaysia
3.70% 77.78%
Singapore
Taiwan

Thailand

Figure 6: % of ADD cases origin country wise

Case 4: Evasion of ADD on laser cuĴing machines

In January 2025, DRI detected evasion of ADD on
imports of laser cutting machines, leviable under Notifi-
nd
cation No. 15/2023-Customs (ADD) dated 22 Decem-
ber, 2023. Investigations revealed that several importers
evaded payment of ADD amounting to approximately ₹5
crore. Following the probe, the importers paid the
evaded ADD along with the applicable interest.

iv. Misclassi cation

Misclassification in imports refers to declaring goods under an incorrect HSN
Code. It is often resorted to evade higher customs duties, misuse exemptions, avoid
ADDs and other levies, claim FTA benefits wrongfully or circumvent import/ex-
port policy and other regulatory requirements. Such actions result in revenue loss,
trade distortions, and data inaccuracies, leading to unfair trade advantages to
non-compliant traders thereby undermining the integrity of the customs classifi-
cation system.

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