Duty evasion by fabric importers in connivance with M/s. Sweety International Pvt. Ltd. (SIPL), Surat under Advance Licence Scheme by showing high seas sales transaction — regarding - Customs - 059/02

Circular No. 59/2002-Cus., dated 12-9-2002 F. No. 605/55/2002-DBK Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject: Duty evasion by fabric importers in connivance with M/s. Sweety International Pvt. Ltd. (SIPL), Surat under Advance Licence Scheme by showing high seas sales transaction — regarding. CC (Import), Mumbai has reported a case of M/s. SIPL where the party used to adopt a noval modus operandi for evading customs duty. SIPL are reported to have obtained two Advance Licences of total CIF value of Rs. 40 crores by declaring fictitious address of their registered office at Surat and also providing a fictitious supporting manufacturer by name M/s. Rangoli Prints. SIPL used to openly approach importers of fabrics and manipulate the goods to have been sold on high seas in their name by the original importer and the bills of entry were filed in the name of SIPL. After obtaining duty free clearance of goods against SIPL's Advance Licence in this manner, the party used to deliver the goods to original importers after collecting huge premium. By adopting this modus operandi SIPL are reported to have cleared about 40 consignments of fabrics of 12 importing firms defrauding the Government of customs duty of approximately Rs. 4 crores. 2. This modus operandi is brought to your notice to prevent its recurrence. 3. Suitable instructions may be issued to Customs field staff under your charge to alert them of this modus operandi . 4. Receipt of this Circular may kindly be acknowledged.