According to the association, importers are causing market disruption by evading customs duty and GST, resulting in a loss of 40-50 lakhs per container.
The Federation of Surat Textile Traders Association (FOSTTA), which has made significant investments based on the Indian government’s Make in India initiative, expressed their concerns in a letter to the Government of India. They raised issues regarding the misdeclaration of fabric imports from China and the evasion of customs duty and GST.
According to the association, importers are causing market disruption by evading customs duty and GST, resulting in a loss of 40-50 lakhs per container. These imported goods are then sold at very low prices, making it difficult for Indian manufacturers to compete and sustain their factories. The association warned that if this practice continues, they may be forced to shut down their operations.
In addition, the association reported smuggling activities taking place at Mundra port, Mundra SEZ, Kandla SEZ, ICD, PIYALA, and ICD Faridabad. These deceptive practices not only violate legal regulations but also pose a significant threat to the ‘Make in India’ initiative led by Prime Minister Narendra Modi. The manufacturers expressed their concern that if immediate action is not taken, they may resort to extreme measures.
To gather evidence, some members of the association visited China for two weeks and observed that the actual value of the imported goods was ten times higher than the declared value filed with customs. Champalal Bothra, the General Secretary of the Federation of Surat Textile Traders Association, stated in the letter that the Chinese factories were aware of these deceptive practices and even taught him various methods of smuggling and misdeclaration used by other Indian importers. Bothra included specific examples of incorrect imports to illustrate the magnitude of the problem, hoping that the government would take strict action promptly.