By TIOL News Service

KOLKATA, SEPT 14, 2017: THE Directorate of Revenue Intelligence (DRI), Kolkata, has busted a syndicate consisting of a group of unscrupulous persons who had come together to form shell companies. These entities in connivance with the Customs House Agents (CHAs) were importing consignments from Hong Kong and China through Kolkata port by hugely mis-declaring the description, quantity and value and thereby evading huge amounts of Customs duty. In fact, the magnitude of mis-declaration is to such a large extent that the fraud literally amounts to Outright Smuggling of consumer goods in commercial quantities concealed in containers, as a part of systematic racket. The extent of undervaluation has been found to be between eighty to hundred times, when the value declared before Customs and the market value of the goods are compared!

As a part of this Operation launched by the DRI, four consignments from China and Hong Kong imported at Kolkata port by one Kolkata based firm M/s A.S.S Tradcom were intercepted and examined.

While goods such as miscellaneous items like hair clip, lightings, unbranded foot wear, unbranded baby garments were declared in the documents filed before the Customs authorities, a whole array of articles from ladies undergarments to branded shoes to Glass Chatons to Massage Chairs as per details listed below were found instead, amounting to complete –mis-declaration.

++ 2.37 Lakh pieces of designer ladies brassier ,

++ 2.2 Lakh pieces of designer ladies panties ,

++ 1.04 lakh pieces of ladies inner vests ,

++ 7 . 5 MTs of Glass Chattons ,

++ 20,740 pairs of branded shoes of NIKE, ADIDAS and GAP brand,

++ 10,000 sets of combination locks ,

++ 80,000 bike engine chains packed in branded packets of HONDA and DID,

++ Massage chairs ,

++ Projection lamps etc.

The total market value of these goods has been estimated to be around Rs. 18 Crores .

The cartel involved has used a unique modus operandi. The actual importer used a ‘Kolkata' based shell company with a valid Import Export Code (IEC) issued by the DGFT. The shell company's directors in connivance with other persons forming a part of the syndicate would allow the IEC to be misused for a hefty consideration without going into the nitty gritty of Imports. The Import Export Code (IEC) holder in such cases usually are proprietorship or partnership firms, who do not require any registration from the Registrar of Companies. The actual importer also avoids the risk of getting himself caught and also the risk of getting his own IEC cancelled. There are also some persons who run broking business to mediate between the actual importers and the IEC holders. To top it all, there are Custom Brokers who clear the consignment on behalf of such defunct IEC holders without caring for the stipulated due diligence including the KYC norms that they are required to verify with respect to the bona-fides of these IEC firms. Thus, the cartel runs the whole job of importing mis-declared goods, getting them cleared without much effort and problems, dupe the Govt. and evade huge amount of Custom Duty in that process.

Four persons in this scam by M/s A.S.S Tradcom have been arrested in connection with this fraudulent import. These include Mr Sailendra Singh, IEC holder of M/s A.S.S. Tradcom, Mr Sanjay Agarwal, middleman in the racket of misdeclared imports , Mr Mukesh Kumar, Partner in CB firm M/s Modern Agency and Mr Lakshman K Das also associated with the said CB firm.