India: DRI unearths anti-dumping duty evasion racket

21/11/2011 12:00 - 389 Views

Ahmedabad, Nov 17 - A nationwide racket allegedly involved in evading anti-dumping duty of over Rs 20 crore on steel coils, imported mostly from a major Korean steel maker, has been unearthed by the Directorate of Revenue Intelligence (DRI) officials.

A consignment of steel coils grossly valued at over Rs 8.5 crore imported by POSCO-India--world's fourth largest steel maker--from Korea was recently seized by the Ahmedabad DRI unit at the Kandla port in Gujarat for duty evasion, a senior official said.

"A consignment of POSCO-India whose gross value is pegged at over Rs 8.5 crore was recently seized at Kandla port for mis-declaration on width of imported steel coils, just to evade anti-dumping duty," the official told PTI.

There was no response from the company on the development.

Steel coils find usage largely in automotive industry.

"Our investigations have revealed that anti-dumping duty evasion on imports of steel coils in India from Korea could go beyond Rs 20 crore as violation of a GoI notification has been found in imports done by POSCO-Hyundai and Sharda Motors at Chennai Port also, besides few other importers," he said.

The Customs officials at various ports across the country have been alerted about the modus operandi involving concealing the width of steel coils to evade anti-dumping duty, a DRI official said.

Imported stainless steel coils with width ranging between 600 mm to 1250 mm attract anti-dumping duty as per a Government of India (GoI) notification-14/2010 issued on February, 2010, the official said.

The notification was passed with a view to protect the interest of domestic steel industry in India.

"However, POSCO-India had declared width of steel coils imported from Korea as 1251 mm to evade duty," he said.

"The POSCO-India has admitted that they have evaded anti-dumping duty and also agreed to pay around rupees one crore duty on it so far," the official added.

"If the present and past consignments imported by this company (POSCO-India) are considered then anti-dumping duty evasion could go beyond Rs 10 crore," the DRI official said.

EN 1.4512 steel grade was exempted from anti-dumping duty vide the notification of GoI number 14,2010 of 20th February 2010.

"Prior to the February notification, POSCO-India was importing the stainless steel coils under the 409L grade name, which attracts anti-dumping duty in India," he said.

"Later, the company just changed its name to EN 1.4512 grade to evade anti-dumping duty, although they were importing 409L grade steel coils only," the official added.

The steel coils are usually imported from countries like Japan, Korea, South Africa, China, Taiwan, Thailand and USA. PTI.

Source: lensonnews.com