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Watermelon seeds import scam busted

In a joint operation, Directorate of Revenue Intelligence (DRI) Mumbai and Ahmedabad units unearthed a scam of undervaluation in the import of watermelon seeds of over Rs 150 million. The DRI teams raided nine importers and manufacturers in Ahmedabad, Vadodara, Nadiad, Sidhpur and Mumbai and seized over 10,000 metric tonnes (MT) of watermelon seeds. This is the first case of undervaluation in imports of watermelon seeds in the country.

The importers and manufacturers were evading customs duty by showing under invoice of the imports. Watermelon is an agro commodity which invites 36% customs duty on imports. "These importers used to show invoice of $300 per MT while the standard price of watermelon seeds is $1,000 per MT," said a DRI official. Major portion of the consignments seized was imported from Sudan while the rest was from Pakistan. The main application of watermelon seeds is in the food industry. "The peels of seeds are removed and the white kernel is mainly used in sweets after processing," added the official.

The officials suspect use of hawala route in the transactions so that the importers can evade the customs duty.

DRI will also look into the violations of any food-related acts. "The importers have to get Phyto sanitary certificate from the source country. We will check if the seeds were fumigated or not," said DRI official.

Source: indiatimes.com
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