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This country's customs impounded goods from China on suspicion of underinvoicing! 这个国家海关扣押来自中国的货物，涉嫌低开发票！ Please pay attention to shipment! 出货请注意！
India's Central Indirect Duties and Customs Commission (CBIC) has informed the Ministry of Commerce that it has seized some imports from China in connection with underinvoicing, an Indian government official said.
The Ministry of Commerce has reported the problem of low invoicing for imports from China to the Ministry of Taxation.
While action is being taken on identified cases, CBIC has also increased risk analysis for certain shipments, the official said.
"We have reported the problem to customs and tax authorities.
Feedback received is that they are taking action on a number of shipments for which the risk analysis has increased to identify those shipments that may have been under-invoiced."
"The official said.
Earlier media reports said there was a $12 billion gap between the trade figures announced by China and India in the first nine months of 2022 due to underbilling, which is hurting India's finances.
The CBIC General Directorate of Valuation found that the average import price of J3 stainless steel flat sheet products between April and July 2022 was Rs 87 per kg while the average import price of the same products for grade 201 was Rs 163 per kg.
In addition, similar products in both 201 and J3 classes are imported at Rs 149 per kg.
It is understood that the government is also conducting a valuation study to sensitize officials and prevent undervaluation.
The imports from China linked to underinvoicing under the government's tax scanners were mainly electronics, gadgets and metals, according to the report.
Falsifying invoices is to avoid customs duties.
While China reported $103 billion in trade with India in the first nine months of 2022, Indian data showed bilateral trade was only $91 billion, the report said.
This is thought to be mainly due to Indian importers underinvoicing goods to avoid paying import duties.
Emailed queries from the Indian media to the ministries of Commerce, industry and Finance were not answered by press time.
In fact, as early as the last week of September 2022, the customs authorities had issued notices to 32 importers suspected of evading some Rs 1,600 crore through underinvoicing between April 2019 and December 2020.
"Investigations have revealed many cases of underinvoicing, especially for shipments from China, and we have issued notices to 32 importers for underinvoicing and alleged tax evasion of Rs 1,600 crore," a senior government official said.
The imports mainly involve electronics, gadgets and metals, the official said.
The difference in reported trade figures between the two countries has widened from $5.2 billion in 2018 to nearly $12 billion now, the outlet said.
The gap is widening year by year.
In 2019, India's imports from China stood at $68.35 billion while Chinese data showed exports at $74.92 billion, a gap of about $6 billion, rising to $8 billion in 2020 and $10 billion in 2021.