In a major enforcement breakthrough, Mumbai Customs has uncovered an elaborate attempt to evade nearly ₹2.5 crore in anti-dumping duty (ADD) by allegedly altering identification plates on heavy machinery imported from China. The case, officials say, reflects a calculated effort to bypass tariff obligations through post-landing manipulation of machine specifications.
Inspection Triggered Suspicion
The suspected duty-evasion scheme came to light between October 31 and November 1 during a surprise scrutiny conducted by a senior appraising officer at Indira Dock. Three Chinese-manufactured wheel loaders imported by an Indian firm had been stationed in the yard after unloading.
During the first inspection, all machines carried QR-coded capacity plates indicating a payload of 7,000 kg — a specification that attracts ADD under prevailing rules. However, officials were startled when a joint examination the following day revealed entirely new plates affixed on the same loaders. The replacement plates bore no QR codes and instead displayed an upgraded payload figure of 7,100 kg, just above the threshold where ADD ceases to apply.
The sudden overnight alteration, Customs investigators noted, was not only suspicious but also indicative of deliberate engineering to evade statutory duty.
Probe Escalates to Police
Following the discovery, Customs immediately halted clearance of the equipment and transferred the matter to the Special Investigation and Intelligence Branch (SIIB). Technical verification and cross-checks with import documentation confirmed that the original plates had allegedly been removed and replaced with counterfeit ones with inflated figures.
Given the seriousness of the tampering and the apparent intention to defraud the Union government, SIIB officials escalated the matter to law enforcement agencies. An FIR has now been registered against representatives of the importing company based on a complaint filed by Senior Intelligence Officer Dinesh Kumar Mahawar.
“This was not a procedural lapse. The plates were altered after the cargo landed. There was a clear intention to escape anti-dumping duty liability,” a senior Customs officer stated.
The three wheel loaders remain under detention at Mumbai Port as investigators examine CCTV records, entry logs of personnel having access to the yard, and conduct forensic evaluation of both the original and forged plates.
Why Anti-Dumping Duty Matters
Anti-dumping duty is imposed to counter the impact of unfairly priced imports entering the Indian market at rates below fair value. For Chinese wheel loaders, ADD applies only if the machines have a payload capacity of 7,000 kg or below. Units exceeding this threshold are exempt.
In this case, Customs officers had initially documented the loaders with 7,000 kg QR-coded plates. The subsequent shift to non-coded 7,100 kg plates is seen as a deliberate manoeuvre to place the machinery just beyond the taxable capacity bracket.
Significance of the Case
Officials describe the incident as potentially one of the largest attempts at ADD evasion detected at Mumbai Port in recent years. If charges are upheld, the importers may face prosecution under the Customs Act, along with penalties, confiscation of goods, and recovery of evaded duty.
The investigation is ongoing, with authorities focusing on how the tampering was executed inside a secured dockyard and whether any internal or external facilitation was involved.
The case is likely to prompt tighter surveillance protocols for high-risk consignments and may trigger wider scrutiny into machinery imports where specification-based exemptions play a decisive role in duty computation.
Read More: Revenue Sharing Arrangements Don’t Involve Provision Of Service By One Person To Another: CESTAT
