Page 158 - SMUGGLING IN INDIA REPORT FOR 2020-2021

112 2020-2021 SMUGGLING IN INDIA REPORT
There appears to be a positive impact of the legal intervention brought through introduction of Section 28DA of the Customs Act, 1962 and implementation of Customs (Administration of Rules of Origin
5. Evasion of Anti-Dumping Duty(ADD)/ Countervailing Duties (CVD) :
Wrong classification and mis- declaration of the Country of
under Trade Agreements) Rules, 2020 in respect of Rules of Origin under Trade Agreements and verification of Certificates of Origin. These newly introduced provisions are acting as deterrent for misuse of FTA.
Origin either by submitting fake Certificate Of Origin or by routing the cargo through another country are few modus operandi adopted by importers to evade anti-dumping duties of Customs.
Evasion of ADD/CVD
In one of the investigation carried out by DRI, it was observed that certain importers were importing stainless steel flat products by mis-declaring them to be of Malaysian origin and miss- classifying under a wrong tariff heading to circumvent payment of CVD and wrongful availment of duty exemption under FTA benefit as well.
In another case, it was found that importer was importing certain Chinese origin goods in SEZ unit and selling the same in domestic tariff area(DTA) without any processing. It did not discharge applicable ADD on DTA sale and mis-declared the origin of goods as Indian in its home consumption bills of entries. In other words, it used SEZ as façade to evade payment of anti- dumping duty.