Customs unearth drawbacks fraud of Rs 510 million by UP carpet exporters

In the backdrop of corporate frauds and loan defaults hitting headlines, the Central Board of Indirect Taxes and Customs (CBIC) has exposed duty drawback frauds of over Rs 510 million by four Uttar Pradesh based carpet exporters.

Duty drawback is the scheme to incentive exporters by indirectly waiving the incidence of duties through refunds. However, the exporters have to complete follow up formalities to establish the authenticity of the export transaction and remittance of income to the country.

According to Chief Commissioner Customs (UP, Uttarakhand, Bihar & Jharkhand) K C Gupta, four carpet exporters from the carpet hub of Bhadohi in UP