DRI Detects Customs Duty Evasion of Rs.3.25 Cr

The Hyderabad zonal unit of Directorate of Revenue Intelligence (DRI) has seized 113 Metric Tonnes (MT) of illegally imported areca nuts in Krishnapatnam port.

Based on specific intelligence relating to illegal imports of areca nuts into the country, by concealing with copra expeller cake (cover cargo), officers of the DRI in Nellore and Vijayawada visited Krishnapatnam port and verified imports made by two importers in eight containers from May 10 to 12.

On detailed examination, it was found that the importers declared 156 MT of “Coconut Expeller Cake” for import into the country. However, only 43 MT was as per the declared cargo. The remaining 113 MT was actually areca nut of 90/95 grade of Indonesian origin on which the Customs duty evaded worked out to Rs.3.25 crore, officials said.

Areca nuts attract customs duty of 100 per cent and its value is far higher than Coconut Expeller Cake. When the containers were examined, first two rows in the containers were loaded with Coconut Expeller Cake and the remaining rows were loaded with Areca nuts.

Hence, it appears that the importers using “Coconut Expeller Cake” as a cover cargo to illegally import “Areca Nuts”.

The masterminds were intercepted in Kerala with help of Cochin police, CGST officers of Cochin and DRI officers of Cochin. It is noticed that in the past also the said importers have resorted to this kind of modus and smuggled in about 150 MT of Areca nuts, officials said.