Logistics

Customs move to re-check Chinese imports aimed at plugging “under-valuation”

P Manoj Mumbai | Updated on June 25, 2020 Published on June 25, 2020

Re-checks done without written instructions to prevent being challenged in WTO

India’s Customs officers at Mumbai and Chennai have started scrutinising cargo containers originating from China to check massive “under-valuation” of goods, a former Customs Commissioner has said, amidst reports that New Delhi was hitting back at the Dragon for the recent skirmishes along the border that killed 20 Indian soldiers.

Since Tuesday, stakeholders in India’s export-import (EXIM) logistics chain have been grappling with an “internal, oral instruction” from the Customs to all custodians of cargo including port terminals, container freight stations (CFS) and airports to hold all containers that have originated from China until they are re-examined and cleared by the Customs.

Port terminal and CFS operators contacted by BusinessLine said that they had not received any written instructions from the Customs in this regard, making it all the more intriguing.

“Sounds more like a bit of sabre-rattling to me…. with nothing overt happening out there,” said a port terminal executive in Mumbai. “Things would back up very quickly, if so. Few little tweaks here and there, slow down here and there in clearing containers sends a (political and diplomatic) message,” he added.

A few CFS executives in Mumbai BusinessLine spoke to said that the Customs unwritten move could be designed to harass India’s second-largest trading partner while stating they were yet to receive any such “oral instructions”.

The former Customs Commissioner mentioned earlier said that there was “rampant undervaluation” of Chinese goods coming into the country and the re-examination of goods was aimed at plugging that practice which was hurting duty collections.

“India’s imports from China is huge, that’s why the re-examination is targeted at consignments originating from China,” the Customs Commissioner, who superannuated in May and has knowledge of the issue said, asking not to be named.

He further stated that such re-examinations are always carried out by officers without any written instructions from the top. “If any such formal, written instructions are given, China can take India to the World Trade Organization (WTO). India does not want to get into all that. But, you know what is happening on the border,” he added cryptically.

Published on June 25, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.

In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.

Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
Mumbai Port emerges top spot for crew change in India