Fake Bangladeshi Origin Used to Evade 2,500cr Customs Duty

A syndicate used fake Bangladeshi origin to evade customs duty. Nine people have been arrested following a month-long intelligence-led operation, according to the Indian Finance Ministry. Preliminary investigations estimate that the scheme caused more than Rs 2,500 crore in revenue losses to the Indian exchequer. India’s Directorate of Revenue Intelligence (DRI) has busted a huge ring of customs duty evasion by falsely declaring betel nuts from Southeast Asia as ‘Bangladeshi products’.

The gang imported betel nuts from Indonesia, Thailand, Malaysia and other Southeast Asian countries before falsely declaring Bangladesh as their country of origin to claim duty exemptions under the South Asian Free Trade Agreement (SAFTA). India normally imposes a 100% basic duty on betel nut imports, while qualifying Bangladeshi-origin products can receive duty-free treatment under SAFTA’s Rules of Origin.

Authorities have seized Rs 75 lakh in cash and around 160 metric tonnes of betel nuts. The customs broker linked to most of the fraudulent imports has also had its licence cancelled.