Circular No.101/2000 dt.30th November,2000
Subject : Alert in regard to detection of frauds

Sir,

Recently, a large case of drawback fraud has been detected at Nhawa Sheva Port. In this case the exporter had attempted to export old and used garments and carpet cutting left overs, mainly with the intention to claim undue drawback. On investigation, it was found that some garments were of such small size as can be used only for dolls and even these were made of old and used sarees. Some of the garments were burnt at places and stained and again clearly made out of old and used sarees. The average FOB value declared by the exporter was U.S.$ 6 per piece and resultant drawback approximately Rs. 45/- per piece. Another container was declared to contain carpets with FOB value of U.S. $ 39 per sq. meter. On examination, not only the container had huge shortage compared to the declared quantity, but actually contained cut pieces left over while laying the carpets on the floors.

2. It was also found that the examination report was filed by the Examiner within a few minutes of the arrival of the goods from which it is clear that no examination was actually carried out.

3. The above modus operandi is brought to the notice of the field formations to prevent recurrence of similar cases.

Sd/-
(Sandeep Ahuja)
Under Secretary (DBK)

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