Customs Clearing Agent Convicted In Mumbai Duty Evasion Case

A customs clearing agent in Mumbai has been sentenced to two years in prison for evading import duties by using front companies and falsified documents to import mobile accessories from China.

Key Points

Customs clearing agent Pradeep Rane sentenced to two years in jail for import duty evasion.
Rane used front companies and proxy IECs to import mobile accessories from China, evading duty.
The CBI claimed the accused caused a loss of Rs 13.40 lakh in import duty to the government.
The court criticised the CBI for its flawed investigation and acquitted three other accused.
Importing goods under a proxy IEC certificate poses a serious threat to national security.

A court here on Thursday sentenced a customs clearing agent to two years' imprisonment in four cases of import duty evasion.

Special CBI Judge Amit V Kharkar, however, acquitted three other accused including a government examiner, and criticised the Central Bureau of Investigation for its "casual" and flawed investigation.

Customs Agent Found Guilty of Cheating

Clearing agent Pradeep Rane was found guilty under Indian Penal Code section 420 for systematically cheating the Customs Department.

He was also asked to pay Rs 5,000 fine in each case.

As per the prosecution, in each case a local trader wanted to import mobile accessories from China, but lacked the mandatory Import-Export Certificate (IEC).

They approached Rane. Using the PAN cards, Aadhaar cards and photographs of unsuspecting persons, Rane registered front companies "Heena Traders", "Saani Enterprises", and "M/s Sarika Enterprises" to generate IECs.

Loss to Government Exceeds Rs 13 Lakh

The CBI claimed the accused caused a total loss of Rs 13.40 lakh in import duty to the government in the process.

While the court found Rane guilty, it let off other accused for lack of evidence.

"The Investigating Officer only collected the documents from the customs department, including the inventory, without himself verifying the consignment," the court said.

Proxy Certificates Threaten National Security

The judge noted that importing goods under a proxy IEC certificate is a serious threat to national security.

"The modus of examination would show that only 10% of the cargo was examined and, in such case, the modus could be exploited by nefarious entities to import consignments of prohibited articles by using proxy IEC certificate," the court said.

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