NEW DELHI, DEC 4: Attempts by Indian investigating agencies to prove that a huge quantum of inferior quality Chinese goods have been flooding the Indian market have come unstuck. The week-long raids conducted by the Directorate of Revenue Intelligence (DRI) from November 12 confirmed the trend of smuggling but follow-up action has shown that in a majority of cases, it is impossible to prove the illegality or under-invoicing of these goods.DRI officials say it is the reluctance of countries like China and Singapore to assist in providing copies of export invoices that is proving to be a major hurdle for them. Raids were conducted in 385 locations all over the country, resulting in the confiscation of goods worth Rs 4.97 crore. However, with Indian importers producing documents of import and the exporting countries refusing to help, the DRI has been forced to release several confiscated consignments.The DRI Chief, M K Zutshi says the absence of documentary evidence and shipping from the port of export was hampering their investigations. ``Some assistance has been forthcoming from Hong Kong, (but) countries like China and Singapore have refused. India is a signatory of the World Customs Organisation and therefore, the onus of proving the illegality imports is on the investigating agency,'' Zutshi explains. ``Unless the DRI produces documentary evidence it will be extremely difficult to prove the illegal imports. We may be forced to release many more seized consignments.''DRI sources say that while immediately after the raids, the opulent show of Chinese goods had disappeared from markets, they have again been put back on display in some cities. DRI officials say the goods are known to be sometimes under-invoiced even to the extent of 10-20 percent of their price. ``The fact of the matter is that the price of the goods have no connection with the cost of manufacture. They are positively sub-standard in quality and unless checked, the smuggling and rampant under-valuation can prove to be a serious problem for the Indian small-scale industry,'' feels Zutshi. While the Indo-Nepal border was earlier considered the most favored routed for landing the goods, several other mainland ports like Mumbai and Chennai have now been identified. The Calcutta corridor and the Gorakpur route - where a huge amount of Chinese goods are allegedly labelled as Indian - are also said to be active for landing Chinese goods.The Union Government and different chambers of industry, in the meantime, are taking a series of steps to ward off the danger of the import of sub-standard goods specially in the electronics, footwear and electronic components. Says Amit Mitra, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI): ``First it was only batteries, now it is also toys, fibers and bicycles. Once the network gets well-oiled for smuggling, other channels will get added to the smuggling routes. And if the expansion of the networks continues in this way, in several major items, 5-10 percent of the market will get taken over by the Chinese.''In a recently published report on Chinese imports, FICCI has estimated that in some sectors like batteries where Qualitative Restrictions (QRs) were removed in April, imports rom China have shown a three-fold increase. The report states: ``The rise in cheap imports is going to affect industrial production in a sort time. Many manufacturers have stopped production and are importing similar products because of vast cost differentials.'' An example given by FICCI is the recent closure of a subsidiary of Eveready Ltd, the Eveready Energizer Miniature Ltd. in view of the competition rom illegal Chinese imports.
