Daijiworld Media Network - Mumbai

Mumbai, Dec 13: The Directorate of Revenue Intelligence (DRI) has arrested two chemical traders on charges of evading customs duty by allegedly mis-declaring imported chemicals sourced from China.

According to officials, the accused suppressed key import details such as the country of origin and Bills of Lading to avoid paying customs duties running into crores. The arrested individuals have been identified as Ankit Mehta, Director of Chemkart India, and Maulik Kothari, a partner at M/s Aphrodite Foods LLP.

The DRI said it acted on specific intelligence indicating that Chemkart India, based in Santacruz (East), had been importing products including Instantized Branched Chain Amino Acids (BCAA), Instantized L-Leucine Powder, Instantized L-Isoleucine Powder, and Valine Powder from Chinese suppliers since December 2021. These goods fall under Customs Tariff Item (CTI) 21069099, which attracts a total customs duty of 82.9 per cent.

Investigators allege that Chemkart India alone evaded customs duty worth approximately Rs 10.85 crore, while Aphrodite Foods LLP is accused of evading around Rs 12 crore.

DRI officials placed the suspect consignments on hold and sent samples for laboratory testing. The investigation revealed that the accused allegedly colluded with Chinese exporters to mis-declare the nature of the goods by altering the Customs Tariff Heading (CTH), thereby reducing the applicable duty.

Searches conducted at the premises of both traders reportedly led to the seizure of chats and email communications showing instructions to suppliers to remove the words “Instant” or “Instantized” from invoices and product labels. Officials said this was done despite the traders being aware that the goods were instantized preparations and therefore subject to higher customs duty.

According to the DRI, electronic evidence recovered during the searches corroborates the alleged manipulation and deliberate mis-declaration of imports, forming the basis for the arrests.