Imports are under-invoiced to avoid requirements for imports exceeding a particular value, as well as customs charges and GST. Due to lesser tariffs, these commodities have an unfavourable price advantage on the domestic market. The government has long feared that Chinese companies engage in unfair trade practices, and customs authorities have also been keeping an eye on some of the largest telecom firms.
Following a check on the cargo arriving from across the border, customs authorities heightened risk profiling, leading to some seizures, as a result of the issue being brought up by the commerce department to the finance ministry, a senior officer said.
According to estimates from the commerce department, between April and December, imports from China increased by almost 12 per cent to close to $76 billion, while exports decreased by 36 per cent to $11 billion. According to the most recent data made public by Chinese authorities, India’s trade deficit with China surpassed $100 billion for the first time in 2022, giving rise to new worries at a time when the government is attempting to cut shipments.
According to officials, COVID regulations in China reduced exports. However, imports had not decreased because India was dependent on essential inputs like basic pharmaceuticals to create medicines.
