The Confederation of All India Traders (CAIT) on Sunday expressed concern over imports of goods from China saying that these goods are supposed to have a nexus with hawala transactions resulting in a huge loss of custom duty and IGST revenue to the Government.

Calling it a serious matter, the CAIT urged the Government to institute a high-level inquiry at Indian ports and said the crony nexus should be brought to an end.  The traders’ body added that  imported goods are heavily undervalued and as a result indigenous products are unable to compete with the Chinese products.

CAIT National President B C Bharatia and Secretary General Praveen Khandelwal said that it is an important issue, which requires thorough research, investigation and proper verification at all levels. 

“The material being received in our country from China is said to be highly undervalued. It is necessary to understand what material is actually imported and what nomenclature has been given to it. In order to attract lower custom duty and lower IGST the declaration in many cases do not match the material that is actually being imported.  This needs proper verification of document along with the material that is being import from China,” said Khandelwal.

 Khandelwal said that it is believed that the materials being imported from China are declared at highly undervalued prices.  “It could be Collusion or hand in glove offer with certain mysterious officers. When such materials which are grossly undervalued come to the port, custom duty is paid at a very low price. Also IGST is paid at a very lower price and then this material goes into grey market and is sold at very competitive prices as compared to Indian goods where GST is paid at full amount,” said Khandelwal.

“In order to save Indian economy, in order to save MSMEs of our country and in order to ensure that proper tax collection is done at ports, it is high time that all imports should pass through a proper check as regards valuation of these products are concerned. It cannot be denied that the goods that are being imported in our country from China are highly underpriced. It is common sense that difference in actual price and the billed amount has to be transferred to Chinese exporter through some means,” said Bhartia.