DRI uncovers illegal use of SAFTA agreement in arecanut imports to India
The Directorate of Revenue Intelligence has dismantled a smuggling network that illegally imported arecanut from South-East Asia by mislabeling it as Bangladeshi origin to avoid customs duties. The fraud resulted in an estimated revenue loss of over ₹2,500 crore.
Why it matters
This case underscores the challenges of enforcing trade agreements and preventing tax evasion in international commerce.
The Directorate of Revenue Intelligence (DRI), in a month-long intelligence-led operation, has dismantled a major network involved in importing arecanut from South-East Asian countries to India, falsely declaring it as being of Bangladeshi origin, and fraudulently availing concessional duty benefits under the South Asian Free Trade Area (SAFTA) agreement. The investigation has so far revealed a potential revenue loss of more than ₹2,500 crore. Nine persons have been arrested in connection with the case, according to the Union Ministry of Finance.
The import of arecanut into India attracts a Basic Customs Duty of 100%. However, eligible imports of arecanut made under the SAFTA agreement are fully exempt from customs duty. Arecanuts originating from Bangladesh are entitled to exemption under SAFTA if imports meet the prescribed Rules of Origin criteria, according to the Ministry.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in