Page 153 - SMUGGLING IN INDIA REPORT FOR 2020-2021

Significant features and trends observed
1. Misdeclaration:
Misdeclaration of goods is done with respect to actual description, value, quantity, unit quantity code, end-use, tariff heading, etc. Such misdeclaration is committed with the malafide intent of evasion of customs duty. It is found to be the most common modus operandi resorted to, constituting roughly 60% of total import commercial fraud cases in FY 2020-21. Despite the pandemic, there was a substantial jump of 255% in cases of misdeclaration detected by DRI involving a duty amount of Rs. 866 Crore in 443 cases compared to Rs. 332 Crore in 173 cases in 2019-20. It is observed that against the common belief that evasion is generally done by smaller firms, some major importers across different
CHAPTER 8: COMMERCIAL FRAUDS-IMPORTS 107
Misdeclaration of imported goods
In a case investigated by DRI, one of largest manufacturer of mobile phones was found to have availed undue benefit of Notification No. 50/2017-Cus & 57/2017- Cus by declaring wrongful description in respect of various items of mobile phones and parts imported.
In another case, leading motor vehicle manufacturer was wrongly classifying certain imported parts of motor car engines to avail reduced duty benefits. Duty evaded is approximately Rs 70 Crore.
Importers were also found to be mis- declaring the description and classification of chemicals to avoid the requirement of mandatory licenses and NOC from CDSCO (Central Drugs Standard Control Organisation.)
sectors also
to have
misdeclaration.
the cases
misdeclaration is significant in commodities such as electronics, electrical accessories, automobile components and chemicals and also in new age technology products.
were indulged
found in Analysis of reveals that