Page 133 - SMUGGLING IN INDIA REPORT FOR 2020-2021

CAROTAR Implication
2020 and Its
CAROTAR was implemented from 21st September 2020. The said rules aim to supplement the existing operational certification procedures prescribed under different FTAs. They require an importer to conduct a basic level of due diligence before importing the goods and satisfy himself that the goods meet the prescribed originating criteria.
As required in the Section 28DA of the Customs Act, 1962, Central Government has notified the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020), vide Notification No. 81/2020-Customs (N.T.), dated 21st August, 2020.
CHAPTER 6: FOREIGN TRADE POLICY: MISUSE OF SCHEMES 87
Adjunct policies that effect enforcement
SEZ/FTWZ/EOU promotion, development of
A Special Economic Zone (SEZ), a specified duty-free zone, is deemed to be a foreign territory within the country for the purpose of tariff and trade. SEZ is set up with the objective of promotion of export of goods and services leading to enhanced economic activities, investment
infrastructure, creation of employment opportunities etc. SEZs could be multiple-product SEZs, sector-specific like information technology, gems and jewellery, biotechnology, Free Trade and Warehousing Zone, etc. SEZs enjoy a host of fiscal and tax benefits.
Misuse of FTWZ Unit Scheme by various importer/exporter firms through Import and Export of item declared to be “Fragrance Oil/Perfumery Compound”
A case was booked by DRI which involved trade based money laundering by way of import of Fragrance Oil (Perfumery Compound) by certain Delhi/Mumbai based firms/companies. Documents recovered during investigation revealed that the consignments imported and warehoused in FTWZs located at Panvel SEZ, Sri City SEZ and Kandla SEZ were exported to third countries mainly Iran and Hong Kong within a week / fortnight of their import either by the importer himself or through other exporters, by way of transfer of ownership.