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DRI continues to uncover such systematic misuse of Foreign Trade Policy, thereby plugging the leakage of revenue. DRI also
assists the Government to fine- tune its trade policies to ensure that the Foreign Trade Policy meets its objectives.
CHAPTER 6: FOREIGN TRADE POLICY: MISUSE OF SCHEMES 89
Violation of Export Restriction
A firm attempted to export restricted goods i.e. ‘Natural Garnet’ while mis- declaring the same as ‘Natural Abrasive Stone’. The good were seized by DRI and a case was booked.
Natural Garnet (CTI 2513 2030) is a type of ‘Beach Sand Mineral’ and the export of Natural Garnet is ‘Restricted’, as per DGFT’s Notification No. 26/2015 dated 21.08.2018. It can be exported only by IREL (India) Ltd., a Government of India undertaking.
Conclusion
DRI is the apex intelligence and investigating agency for investigating frauds concerning misuse of schemes, implemented through the Foreign Trade Policy. In the COVID-19 pandemic year too, DRI continued to detect such cases, cutting across a number of such schemes. DRI’s detections and investigations not only augment revenue collection, but also expose the fraudsters and create deterrence amongst others, who may be lured by the attraction of making a quick buck by indulging in such fraudulent imports or exports, in violation of the conditions of various schemes. Misuse of the Foreign Trade Policy of India has much larger implications than mere revenue loss and has far-reaching consequences, including being a sticking point in bilateral relationships with other countries.