China to Hyd via Dubai: DRI unmasks ‘fake’ cosmetics at city container depot | Hyderabad News
Hyderabad: A discreet, but persistent counterfeit goods trade route linking China and Hyderabad via Dubai, has come under the scanner of enforcement agencies. The Directorate of Revenue Intelligence (DRI), Hyderabad, has recently seized a container of counterfeit and ‘misdeclared’ cosmetics and personal care items at the Inland Container Depot (ICD), Sanathnagar.
Investigators suspect the seizure is part of a larger pattern of imports intended to evade customs scrutiny and taxes.
Based on specific intelligence, DRI investigators had conducted a 100% examination of a container imported on Dec 4, 2024, by a Hyderabad-based importer. Officials found the goods were grossly misdeclared and the importer did not possess the required licence or permission from the assistant drug controller (ADC), Central Drug Standard Control Organisation (CDSCO).
The container was seized under a ‘panchanama’ after a few weeks. Suspicion arose as the goods were landing in Mumbai’s Nhava Sheva Port and routed to Hyderabad inland container depot for customs clearance.
Investigations revealed that the Dubai-based export firm is owned by the trader operating the importing firm in Hyderabad. In such “related person” cases, customs officers were expected to examine the valuation closely to detect any evasion. However, the declared value of the consignment was only 30% of its actual value, indicating deliberate undervaluation.
Officials also came to know that several other containers were lying unexamined at the Sanathnagar depot. There is suspicion that similar misdeclaration might be involved in those consignments as well. The possibility of such a practice behind previous imports by the same trader is now under investigation.
Regulatory Oversight and Coordination Failures Under Scrutiny
CDSCO has expressed concern over systemic lapses in referring relevant import consignments to the ADC office. As per the Drugs and Cosmetics Act, 1940, all imports of drugs, cosmetics, medical devices, and medicines must come from registered sources and require clearance by the ADC, including verification and random testing.
The organisation said it has come to light that several bills of entry (BoEs) for such imports were not being routed through the mandated online system for scrutiny. While a few importers and clearing agents obtain ADC no objection certificates (NOC) manually, others bypass the system. A case in point was the cosmetics consignment intercepted at Sanathnagar. It was not referred to the ADC for NOC and was found to be spurious and misbranded, lacking a valid COS-2 import registration certificate.
Five more cosmetic consignments linked to the same trader have reportedly arrived at the depot and remain unverified by the ADC. Agencies have also noted tactics like declaring finished products as incomplete goods — for instance, importing toys without batteries and labelling them as spare parts — to exploit duty differentials.
Investigators suspect the seizure is part of a larger pattern of imports intended to evade customs scrutiny and taxes.
Based on specific intelligence, DRI investigators had conducted a 100% examination of a container imported on Dec 4, 2024, by a Hyderabad-based importer. Officials found the goods were grossly misdeclared and the importer did not possess the required licence or permission from the assistant drug controller (ADC), Central Drug Standard Control Organisation (CDSCO).
The container was seized under a ‘panchanama’ after a few weeks. Suspicion arose as the goods were landing in Mumbai’s Nhava Sheva Port and routed to Hyderabad inland container depot for customs clearance.
Investigations revealed that the Dubai-based export firm is owned by the trader operating the importing firm in Hyderabad. In such “related person” cases, customs officers were expected to examine the valuation closely to detect any evasion. However, the declared value of the consignment was only 30% of its actual value, indicating deliberate undervaluation.
Officials also came to know that several other containers were lying unexamined at the Sanathnagar depot. There is suspicion that similar misdeclaration might be involved in those consignments as well. The possibility of such a practice behind previous imports by the same trader is now under investigation.
Regulatory Oversight and Coordination Failures Under Scrutiny
CDSCO has expressed concern over systemic lapses in referring relevant import consignments to the ADC office. As per the Drugs and Cosmetics Act, 1940, all imports of drugs, cosmetics, medical devices, and medicines must come from registered sources and require clearance by the ADC, including verification and random testing.
The organisation said it has come to light that several bills of entry (BoEs) for such imports were not being routed through the mandated online system for scrutiny. While a few importers and clearing agents obtain ADC no objection certificates (NOC) manually, others bypass the system. A case in point was the cosmetics consignment intercepted at Sanathnagar. It was not referred to the ADC for NOC and was found to be spurious and misbranded, lacking a valid COS-2 import registration certificate.
Five more cosmetic consignments linked to the same trader have reportedly arrived at the depot and remain unverified by the ADC. Agencies have also noted tactics like declaring finished products as incomplete goods — for instance, importing toys without batteries and labelling them as spare parts — to exploit duty differentials.
