Ahmedabad/Bhuj:

The Directorate of Revenue Intelligence (DRI) , Zonal Unit, Ahmedabad has raided a private export-import firm in SEZ Kandala in connection with massive customs fraud and seized imported assorted goods like polyster knitted fabrics, electrical and electronic items worth market value of more than Rs. 20 crores lying in various warehouses/go-downs.

A DRI official said, ‘ Specific intelligence was developed by us that one Delhi based firm namely M/s. Zip Zap Exim Private limited has established a unit for warehousing and trading of goods imported without payment of customs duty in Special Economic Zone, Kandla. The Ministry of Commerce, Government of India has started an export promotion scheme called “The Free Trade and Warehousing Zone (FTWZ)” which is a special category of Special Economic Zone. The purpose of establishing FTWZ is to develop India into a Global Trading Hub like Dubai, Singapore and Hong Kong and thereby earn valuable Foreign Exchange for the Country. FTWZ units are allowed to import goods duty free, warehouse them and export them.Intelligence further suggested that the firm was not exporting the goods but clearing in the domestic market. It in connivance with its domestic buyers i.e. M/s. Bhuriya Overseas, Ahmedabad, M/s. Radha Trading, New Delhi, M/s. Pride India Enterprise, Thane, M/s. Milstone Exim Pvt. Ltd. Thane, M/s. Jia Lighting Audio Equipment Co. Delhi etc. established its SEZ Unit with sole intent to bypass the normal Customs Channels and clear the duty free imported goods into domestic area by resorting to misdeclaration and undervaluation and thereby defrauding the government exchequer by evading the payment of appropriate customs duty. As per SEZ Rules if a FTWZ unit clears the goods into domestic area, the sale proceeds should be in Foreign Exchange only but M/s. Zip Zap limited was clearing the goods against payment in Indian rupees only and thus they were not earning any foreign exchange.”

He said, ” All dealings with foreign suppliers were being done by the domestic buyers only and M/s. Zip Zap limited was just providing his services in getting the goods cleared through its SEZ Unit resorting to misdeclaration and undervaluation for monetary considerations. By adopting this modus operandi It has evaded customs duty to the tune of several crores. The Director of the firm Gajraj Singh Baid was found to be a habitual offender. He had earlier been arrested by DRI, Lucknow in a customs fraud case in 2010.”

He added, ”Acting upon the said intelligence simultaneous searches were conducted at office and godown premises of the firm and its domestic buyers in Kandla SEZ, Gandhidham, Ahmedabad, Mubai, Delhi and Rohtak. During the search operations which continued for three days, officers of DRI, Ahmedabad were assisted by the officers of DRI, Gandhidham, DRI, Mumbai, GST Bhiwandi, Thane and Delhi Customs Preventive. During search operations many incriminating evidences in the form of E-mails, blank invoices/country of origin certificates/packing lists with Chinese Stamps and signatures on them were recovered which indicated that forged invoices/country of origin certificates/packing lists were being prepared in India which were then submitted to Customs in SEZ, Kandla to get goods cleared by resorting to misdeclaration and undervaluation. DRI, Ahmedabad has detained the assorted goods like polyster knitted fabrics, electrical and electronic items imported by Zip Zap Limited worth market value of more than Rs. 20 crores lying in its warehouses/godowns and that of its domestic buyers at various locations in SEZ, Kandla, Ahmedabad, Mumbai, Delhi and Rohtak. Further investigation is under progress.”

DeshGujarat