Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

DRI detects commercial fraud to the tune of over Rs. 3,100 crore: report.


Date: 01-05-2014
Subject: DRI detects commercial fraud to the tune of over Rs. 3,100 crore: report
New Delhi: Cases of commercial fraud, including trade based money laundering (TBML), to the tune of over Rs. 3,100 crore have been detected by Directorate of Revenue Intelligence (DRI) in the last fiscal--2013-14.

DRI, which acts as lead agency to check smuggling and commercial fraud, has detected 694 cases of commercial fraud involving customs duty evasion of Rs. 3,112 crore in the last fiscal, official sources said.

These cases related to mis-declaration and under invoicing of imported and exported goods, misuse of government schemes to facilitate trade (like foreign or preferential trade agreement--FTA/PTA) and misuse of importer exporter code (IEC) and other exemptions to promote trade, and TBML, among others, they said.

An IEC, which is a unique ten digit number allotted by the Directorate General of Foreign Trade (DGFT), is a mandatory requirement for any importer or exporter.

DRI has issued show cause notices demanding customs duty of about Rs. 2,600 crore from the fraudsters during 2013-14, besides initiating necessary legal action against them. It has received duty of Rs. 1,246 crore during 2013-14, which ended in March, the sources said.

During 2012-13, DRI had detected 709 cases of commercial fraud--both in import and export--involving government's revenue of worth Rs. 4,742 crore. It had recovered a duty of Rs. 1,130 crore in 2012-13, they said.

DRI officials said they were taking necessary action to keep a check on trade based money laundering which has emerged as a new modus operandi by certain elements to illegally route proceeds of crime or black money.

Financial Action Task Force describes TBML as the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. In simpler terms, TBML is the process of transferring or moving money through trade transactions.

According to a Finance Ministry report on black money, the international trade system is subject to a wide range of risks and vulnerabilities, which provide unscrupulous entities the opportunity to launder money.

"A common technique used to circumvent currency restrictions is to 'over-invoice' imports or 'under-invoice' exports. The primary method used is the falsification of import and export invoices...

"Several cases of forgery of export promotion scheme scrips or licences, meant to claim duty exemption in imports have been detected, which highlight another aspect of black money generation and movement," the report had said.

Source : profit.ndtv.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 28-02-2025
Notification No. 12/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 14-02-2025
Notification No. 10/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 13-02-2025
Notification No. 14/2025-Customs
Seeks to amend Notification 11/2021-Customs dated 01.02.2021 to amend AIDC rate on Bourbon whiskey

Date: 11-02-2025
NOTIFICATION No. 09/2025–Central Tax
Seeks to bring rules 2, 8, 24, 27, 32, 37, 38 of the CGST (Amendment) Rules, 2024 in to force

Date: 03-02-2025
[F. No. CBIC-190354/236/2021-TRU]
Corrigendum to Notification No. 50 of 2024 Customs, dated the 30th December, 2024.

Date: 01-02-2025
Notification No. 13/2025-Customs
Seeks to further amend notification No. 153/94-Customs dated the 13 th July, 1994.

Date: 01-02-2025
Notification No. 12/2025-Customs
Seeks to further amend notification No. 19/2019 dated 06 th July 2019.

Date: 01-02-2025
Notification No. 11/2025 – Customs
Seeks to further amend notification No. 25/2002-Customs, dated the 1st March, 2002 so as to add capital goods to the already existing list of capital goods exempted from basic customs duty for manufacture of lithium-ion battery of mobile phones and electrically operated vehicles.

Date: 01-02-2025
Notification No. 09/2025-Customs
Seeks to further amend notification No. 16/2017-Customs, dated the 20 th April, 2017 so to exempt certain drugs for supply under Patient Assistance Programme run by specified pharmaceutical companies.

Date: 01-02-2025
Notification No. 07/2025-Customs
Seeks to further amend notification No. 11/2018-Customs dated 02 th February, 2018 so as to exempt specified goods from the whole of levy of Social Welfare Surcharge.



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001