New pact with Britain to check trade malpractices

Malpractices in trade between India and the UK will be difficult as the Cabinet on Friday approved a new MoU to be signed between the two countries to prevent, detect and investigate violations of customs laws.

Malpractices in trade between India and the UK will be difficult as the Cabinet on Friday approved a new MoU to be signed between the two countries to prevent, detect and investigate violations of customs laws.

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The focus areas are under-invoicing of imports and over-valuing of exports as well as fraudulently availing of export incentives.

The MoU will help the customs to get "information to enable detection and investigation of customs violations, particularly in the critical area of under-valuation of imports and over-valuation of exports and the consequent fraudulent (availing) of export incentives," Home Minister P Chidambaram told reporters after the Cabinet meeting.

The new MoU will replace the existing agreement in operation since 2001.

There have been complaints of under-invoicing and over valuation of exports by traders who claim the tax refunds and sops given to the export activities.