"India Seizes ₹200 Cr Chinese Fabric in Import Crackdown"

India Cracks Down on Undeclared Chinese Fabric Imports, ₹200 Cr Seizure at Mundra

India has stepped up its action against the unchecked import of Chinese fabrics, especially synthetic knitted textiles, following sustained concerns raised by the domestic textile industry.

Despite the government imposing a Minimum Import Price (MIP) on select HSN codes to control rising imports, shipments have continued to enter the country through alternative non-MIP classifications, reducing the effectiveness of the measure.

In a major operation, the Directorate of Revenue Intelligence (DRI) seized around 100 containers of Chinese fabric at Mundra Port, with an estimated value of ₹200 crore. The goods were allegedly misdeclared as low-cost fabric, while actually containing high-quality textiles—indicating an attempt to evade customs duties.

Initial investigations suggest that the real value of the seized consignment could be significantly higher than the declared ₹25 crore. Similar suspicious consignments have also been intercepted at Jawaharlal Nehru Port, pointing to a wider pattern of misdeclaration and tax evasion.

Following the seizure, DRI has launched a nationwide probe to track the import network and identify those involved. Authorities are also tracing the distribution channels of these goods across the country and examining whether similar practices are ongoing at other ports.

The crackdown has highlighted serious loopholes in import regulations, increasing pressure on policymakers to tighten enforcement. With the domestic textile sector demanding stronger safeguards, the effectiveness of these measures in curbing unfair trade practices will be closely watched in the coming months.

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