Lok Sabha Question No. 4061 (UNSTARRED), answered on 2017-03-27
Subject: Irregularities in Export and Import of Foodgrains
Ministry: COMMERCE AND INDUSTRY
Asked by: LAKHAN LAL SAHU

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 4061(H) TO BE ANSWERED ON 27 th  MARCH, 2017

## IRREGULARITIES IN EXPORT AND IMPORT OF FOODGRAINS

## 4061(H). SHRI LAKHAN LAL SAHU:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether  some  cases  of  irregularities  in  export  and  import  of  various  foodgrains including pulses that have come to the notice of the Government;
- (b) if  so,  the  nature  of  such  irregularities  and  the  loss  incurred to  the  exchequer  as  a result thereof during each of the last three years along with the action taken by the Government in these cases;
- (c) whether some importers have made delays in lifting the imported pulses from the ports in view of possibilities in increase of prices of pulses in domestic markets;
- (d) if  so,  the  details  thereof  along  with  the  action  taken  by  the  Government  against them; and
- (e) whether  the  Government  has  taken  any  positive  steps  to  ensure  better  system  to monitor such irregularities and complaints and if so, the details thereof?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) & (b):  A few cases have been reported wherein the exporters /importers had not followed the rules/ procedures as laid down. Action  under the Customs Act,1962 was taken and goods were confiscated and  penalty  was  imposed.  Loss  to  the  exchequer  is  not  quantifiable  in  such  cases.  Details  are tabulated in Table I of the  annexure.
- (c) & (d):  Some consignments of pulses were not lifted by the importers within the stipulated time as prescribed under the Customs Act, 1962.  Action has been taken as per the laid down procedures and rules in the Customs Act, 1962  as indicated in Table II of the annexure.
- (e):  Directorate  General  of  Revenue  Intelligence    issues  regular  Alert/ Modus  Operandi Circulars sensitizing  the  Customs  field  formations  to  keep  strict  vigil  and  thwart  any  such  irregularities  in imports/exports.

## Table I [ for parts ( a) and (b) of the question]

| Year                     | No. of Cases Booked   | Issues involved /Nature of Cases                                                                                                                                                                                          | Value (Rs. In Lakhs)   | Action taken                                                                                                                            |
|--------------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|
| 2013-14                  | 1                     | The exporter has not followed the procedure laid down in para 2.2, 3.1. and 4.1 of the Regulation of Export of Peanuts and Peanut products through control of Aflatoxins issued by APEDA, New Delhi                       | 11.36                  | The cargo was confiscated with an option to redeem on payment of fine. Penalty was also imposed on the exporter and the Customs Broker. |
| 2014-15                  | 3                     | Illicit export of moong dhal/fried grams/chick peas in violation to the provisions of Customs Act, 1962. Moong dhal/fried grams /chick peas were prohibited items for export during the period under Foreign Trade Policy | 9.09                   | The cargo was confiscated with an option to redeem on payment of fine. Penalty was also imposed on the exporter.                        |
| 2015-16                  | -                     | -                                                                                                                                                                                                                         | -                      | -                                                                                                                                       |
| 2016-17 [ Upto Jan 2017] | -                     | -                                                                                                                                                                                                                         | -                      | -                                                                                                                                       |

## Table II [ for parts ( c) and (d) of the question]

| Number of consignments not cleared within the stipulated time under Section 48 of the Customs Act, 1962 and still pending at ports/CFSs                                                                                 |   Quantity [in Metric Tons] | Action Taken                                                                                                                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| One consignment of imported cargo 'Kaspa Dun peas' was not cleared within the stipulated time limit of 30 days from the date of import. The time limit under Section 48 of the Customs Act, 1962 expired on 06.02.2017. |                      136.94 | The custodian of the cargo was issued first notice on 06.02.2017 and final notice on 23.02.2017 under Section 48 of the Customs Act, 1962. Now the custodian has been addressed to send valuation report to auction the cargo. |