Gujarat: The Directorate of Revenue Intelligence (DRI) has seized 100 containers of Chinese fabrics at Mundra port at Gujarat, estimating the value of the goods at ₹200 crore on Saturday.
According to the official sources the containers which were labelled to contain low-cost fabric, were suspected of carrying high-quality textiles, with the misdeclaration made to evade tax duties. Authorities initiated the operation after receiving information about the malpractice.
Preliminary investigations suggest that the value of the fabric inside the containers far exceeds the declared price of ₹25 crore. Sources from DRI revealed that similar shipments have been intercepted at other major ports, including Mumbai’s Nhava Sheva Port also known as Jawaharlal Nehru Port (JNPT), raising questions about the scale of the operation.
With the seizure of these 100 containers, the DRI has launched a nationwide investigation to identify the culprits behind the illegal imports and trace the goods to their final destinations across India. Authorities are also working to uncover the networks of importers involved and whether similar schemes are being run at other ports.
China’s textile imports are heavily taxed due to concerns about unfair pricing, with a 90% anti-dumping duty applied to such goods.
However, smugglers have found ways to exploit the system, with reports indicating that certain types of clothing, such as undergarments, have been cleared without duty, while higher-end items like jackets and shirts attract a fixed duty. Importers are accused of declaring low-duty items while secretly bringing in higher-value goods, bypassing millions in taxes.