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Smuggling in India Report 2024-25 86

B. Export Fraud

In FY 2024-25, DRI booked 63 export fraud cases involving fraudulent export
benefits of ₹123.32 crore. These cases spanned multiple typologies such as draw-
back frauds, misuse of Export Promotion of Capital Goods (EPCG) & Advance Au-
thorisation Schemes, and manipulation of other Export Promotion Schemes.

4.76%
7.94%
7.94%
36.51% % 1.59
1.59%
Misdeclaration
6.35% Misuse of drawback scheme
Misuse of EOU/EPZ/SEZ scheme
Overvaluation
Undervaluation
RoDTEP
SEIS
Others

30.16%

6.35%
6 35%
6.35%

Figure 9: Type-wise % share of total no. of export fraud cases

i. Misuse of EPCG Scheme

EPCG scheme enables Indian exporters to import capital goods duty-free, subject
to the fulfilment of the specified export obligations. DRI uncovered fraud where
the firms, after importing the capital goods under an EPCG license, diverted such
goods in the domestic tariff area or failed to meet export obligations, thereby evad-
ing customs duties.

final fill 160 v28 with bleed.pdf 129 12/19/2025 3:28:01 PM