Government develops new metrics for China trade mismatch; details here

New valuation metrics for imports have been developed by the Indian government after reports of large-scale under-invoicing and mis-declaration of steel imports from China to evade basic customs duty and Goods and Services Tax (GST). The government is planning to sensitize the field formations for preventing such undervaluation, according to a Mint report. The development comes at a time when the under-invoicing of imports from China has come under the tax scanner of the government. The under-invoicing of imports from China is mostly done for evading the custom duty on gadgets, electronic goods, and metals. According to the Directorate General of Valuations under the Central Board of Indirect Taxes & Customs (CBIC), the import of the stainless steel flat products of J3 grade took place at an average price of Rs 87 per kg in April-July this year. Similar products of 201 grade were imported at an average price of Rs 163 per kg in the same period. Additionally, similar products of 201 and J3 Dual Grade were imported at an average cost of Rs 149 per kg. Mint had reported on 1 November about the mystery of missing $12 billion in India-China trade from January to September. China has stated that the trade with India reached $103 billion in the first nine months of 2022. However, the data by India revealed that the trade touched a value of just $91 billion. According to Mint, this is likely caused by the under-invoicing of shipments by Indian importers to avoid the payment of tax. As per China’s claims, it was the largest trading partner of India. However, New Delhi countered the statement, adding that the United States remains its largest trading partner. The difference in the trade figures registered by the two nations has widened to nearly $12 billion from the $5.2 billion in 2018. The substantial import of stainless steel flat rolled products of 201 Grade and 201/J3 dual is cleared at the ports in India at a much lower price. According to the Indian Stainless Steel Development Association (ISSDA) statement to the Centre, this happens because the importer declares the goods as J3 Grade by showing minor alterations in the chemical composition. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.