Customs fraud with stainless steel shakes India

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In the bustling ports of India, a sinister plot has been unfolding. A Singapore-based company, Joy Reap Metal Pte Ltd (also known as Liamtron or Lianchang), has been implicated in a scandalous case of customs fraud, involving the import of stainless steel coil and sheet into India. The company is suspected of using forged Bureau of Indian Standards (BIS) certificates and Mill Test Certificates (MTC) to bypass regulations and import substandard goods.

Interrogation of a suspect in a customs fraud case
Interrogation of a suspect in a customs fraud case

The Deception Unveiled

The Office of the Principal Commissioner of Customs at Mundra Port, Kutch, Gujarat, has been investigating cases of non-compliance with BIS norms. The Steel and Steel Products (Quality Control) Orders mandate that all imported steel products must have a BIS license/certification, a Mill Test Certificate (MTC), and be marked with ISI and BIS license number. However, Joy Reap Metal Pte Ltd (Liamtron) has been found to be in violation of these norms.

Joy Reap Metal Pte Ltd, India Customs Fraud with forged BIS certificates and MTC
Joy Reap Metal Pte Ltd, India Customs Fraud with forged BIS certificates and MTC

Customs fraud with forged BIS Certificates

Investigations have revealed that Joy Reap Metal Pte Ltd (Liamtron) has been using invalid or fake Mill Test Certificates, purportedly issued by an well-known Chinese stainless steel producer. These certificates have been confirmed as fake by the manufacturer’s authorized BIS representative in India. The goods are sold to Indian importers by Joy Reap Metal Pte Ltd, Singapore, and exported into India by Guangzhou Taihuihuang Electronic Commerce Co. Ltd., China.

The misdeclaration and misuse of BIS Certification

A complaint has been lodged regarding widespread violations of the Customs Act and other related regulations by certain importers who are misdeclaring their goods and misusing BIS Certification. These importers are smuggling stainless steel cold-rolled coils (J3 & J2) but misdeclaring them as N1, 410S, 430, 304. They are also misusing the BIS certification of certain overseas manufacturers.

Indian customs authorities are called upon to act

The complaint requests the Pr. Commissioner of Customs, INPT Customs, Maharashtra to initiate necessary action and establish guidelines for the verification of MTC/BIS before clearing such goods by any importer at JNPT. This widespread smuggling is causing significant revenue losses to customs and tarnishing the reputation of genuine importers and traders in the stainless steel business.

The aftermath

The scandal has sent shockwaves through the Indian industry, casting a shadow over the integrity of such traders. The actions of Joy Reap Metal Pte Ltd (Liamtron) have not only violated the trust of their customers but also undermined the Indian economy. The case serves as a stark reminder of the need for stringent checks and balances in the import-export industry to prevent such fraudulent activities in the future.

Was this just the tip of the iceberg so far?

And the unspoken question remains: was this just the tip of the iceberg so far? Where else could this fraud by Joy Reap Metal (Liamtron) have taken place? According to our research, the company not only sells to India, but also to other regions such as North America and Turkey. The customs authorities there will certainly scrutinise the questionable methods of the Singaporean trader.

Are you a customer of this trader? You should check your import documents immediately and contact the customs authorities if necessary.

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