Drawback – payment on fabricated export documents modus operandi – circular - Customs - 007/2000

Circular No. 7/2000-Cus F.NO. 605/14/2000-DBK Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs New Delhi, the 7, 2,, 2000 Subject: Drawback – payment on fabricated export documents modus operandi – circular It has been observed in Chennai Customs House that certain parties had faraudulently obtained payment of drawback by fabrication of export documents, wherein in the exporters were effected by certain exporters and the documents were fabricated in the name of a third party, who ultimately obtained payment of drawback. Some of the relevant drawback claims had been returned to the exporters with deficiency memos and were forged/fabricated in the name of the third party before their re-sunmission to the Customs House for settlement of Drawback Claim. 2. On investigation it was found that the same modus operandi has also been followed in obtaining fraudulent drawback payments from Chennai Air Cargo complex. 3. It has also been found that the party which has obtained the drawback payment is a fictitious and non - existant firm, and has used IEC Code number of another firm, Documents like export certificate, bill of lading, bank attested invoice and insurance certificate which were submitted with the drawback claim have also been found to be forged. Bank seal as well as the signature of the Bank Manger we also fabricated. 4. Similar case was detected in Chennai Custom House during 1996 where the drawback cheques issued to an exported were deposited in a bank account which was unauthorisedly opened in the name of that firm by certain persons. 5. The above modus operandi is being /may/be brought to the notice of a Customs House, to prevent recurrence of such frauds.