DRI busts shell com­pa­nies form­ing racket

Shoes & Accessories - - The Month That Was -

The Di­rec­torate of Rev­enue In­tel­li­gence (DRI) has busted a syn­di­cate com­pris­ing a group of un­scrupu­lous per­sons who had come to­gether to form shell com­pa­nies and seized var­i­ous goods worth ` 18 crore. Four con­sign­ments from China and Hong Kong, im­ported to Kolkata port by a city-based firm M/s A.S.S. Trad­com, were in­ter­cepted and ex­am­ined. Four per­sons were ar­rested in con­nec­tion with the fraud­u­lent im­ports. “…en­ti­ties in con­nivance with cus­toms house agents were im­port­ing con­sign­ments from Hong Kong and China by hugely mis-declar­ing the de­scrip­tion, quan­tity and value for evad­ing cus­toms du­ties,” an of­fi­cial said. Ac­cord­ing to him, the mag­ni­tude of mis­dec­la­ra­tion is to such a large ex­tent that the fraud amounts to out­right smug­gling of con­sumers goods in com­mer­cial quan­ti­ties con­cealed in con­tain­ers. “The ex­tent of un­der­val­u­a­tion has been found to be be­tween eighty to hun­dred times, com­par­ing the value de­clared be­fore cus­toms and the mar­ket value of the goods,” the of­fi­cial said. “The ac­tual im­porter used a Kolkatabased shell com­pany with a valid Im­port Ex­port Code (IEC) is­sued by the Director Gen­eral For­eign Trade (DGFT). The shell com­pany’s di­rec­tors in con­nivance with other per­sons form­ing a part of the syn­di­cate would al­low IEC to be mis­used for a hefty con­sid­er­a­tion with­out go­ing into nitty-gritty of im­ports,” the of­fi­cial said. The IEC holder in such cases is pro­pri­etor­ship or part­ner­ship firms, who do not re­quire any reg­is­tra­tion from Reg­is­trar of Com­pa­nies. The ac­tual im­porter also avoids the risk of get­ting him­self caught and the risk of his own IEC can­celled.

Goods like hair clip, light­ings, un­branded footwear and baby gar­ments, a whole ar­ray of ar­ti­cles of ladies un­der­gar­ments and branded shoes were found from con­tain­ers.

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