In a major enforcement action at Jawaharlal Nehru Port, Indian Customs authorities have detained a Comoros-flagged cargo vessel, WIV Reyfa, carrying nearly 310 containers of dry fruits—primarily walnuts—amid allegations of large-scale misdeclaration of country of origin to wrongfully claim duty exemptions under regional trade agreements.
Vessel Held After DRI Alert
The detention, now stretching close to two weeks, follows specific intelligence inputs received by the Directorate of Revenue Intelligence (DRI) regarding suspected misuse of preferential duty benefits under the South Asian Free Trade Area framework.
According to officials, although the port of loading for all containers has been declared as Bandar Abbas in Iran, importers claimed the goods were of Afghan origin in order to avail zero customs duty under SAFTA. Preliminary findings, however, suggest that the consignments may not have originated from Afghanistan.
The DRI formally communicated its findings to the Mumbai Commissioner of Customs, triggering detailed scrutiny and physical verification of the cargo.
Rs. 50 Crore Duty Evasion Unearthed
A circular issued by the Central Intelligence Unit (CIU) of Customs confirmed that one individual has been arrested in connection with the case. Investigations so far have reportedly revealed duty evasion amounting to approximately ₹50 crore.
DRI officers boarded the vessel on February 1 and recorded the statement of the ship’s master, who confirmed that all containers were loaded at Bandar Abbas Port. A sea cargo manifest was also submitted during the inquiry.
Three Categories of Suspicious Consignments
Upon analysing shipping and customs data, investigators classified the containers into three distinct categories:
- 141 containers loaded at Bandar Abbas but declared as having been loaded from Jebel Ali.
- 66 containers loaded at Bandar Abbas and declared as such.
- 106 containers loaded at Bandar Abbas for which no Bills of Entry were filed.
Officials suspect that forged transit documentation was created to falsely demonstrate that the goods transited through Jebel Ali or Khor Fakkan in the UAE, thereby building an artificial narrative that the produce originated in Afghanistan before export.
Forged Transit Documents Uploaded on E-Sanchit
Investigators have alleged that unscrupulous importers exploited Afghanistan’s landlocked geography to fabricate a transit trail. Fake Bills of Lading were allegedly prepared showing movement of goods from Bandar Abbas to Jebel Ali, in collusion with certain shipping intermediaries.
These documents were then uploaded onto the E-Sanchit platform (electronic storage system under ICES) to support claims for SAFTA benefits.
The CIU circular highlighted multiple irregularities in the documentation, including:
- House Bills of Lading lacking vessel name and voyage number
- Draft Bills presented as final shipping instruments
- Unsigned Bills of Lading
- Bills lacking mandatory “Shipped on Board” dates
- Absence of valid transit Bills of Lading for Bandar Abbas to Jebel Ali leg
Authorities stated that these deficiencies collectively point towards deliberate falsification of shipping records to fraudulently avail zero-duty benefits.
Modus Operandi Under Scanner
The suspected scheme involved loading goods not of Afghan origin at Bandar Abbas and directly shipping them to Nhava Sheva. Upon arrival, importers filed Bills of Entry claiming SAFTA exemptions by submitting Certificates of Origin (COO) purportedly issued for Afghan goods, backed by forged transit records.
Officials believe the first leg of transit—from Bandar Abbas to Jebel Ali—was entirely undocumented or fabricated in several instances.
Customs Tightens Scrutiny on SAFTA Claims
The CIU has directed field formations to exercise “heightened due diligence” in cases involving Afghan-origin claims under SAFTA. Officers have been instructed to meticulously verify transit documentation, Certificates of Origin, and shipping trails before extending preferential benefits.
Importer Moves Bombay High Court
Meanwhile, one of the importers has approached the Bombay High Court challenging the detention. Customs authorities, on their part, are seeking bank guarantees equivalent to the value of the imports before considering provisional release of the cargo.
The investigation remains ongoing, with authorities examining the role of shipping intermediaries and verifying whether the alleged modus operandi has been used in previous consignments as well.
The case is being viewed as a significant crackdown on misuse of preferential trade agreements and fraudulent origin claims in India’s import regime.
