DRI uncovers misuse of SAFTA in areca nut imports; duty loss put above ₹2,500 crore
South-East Asian areca nuts were declared as Bangladesh origin to claim full duty exemption under SAFTA. Nine persons are arrested and a Customs Broker’s licence is suspended.
Key facts
- Published
- 16 August 2026
- Section
- Customs
- Who it affects
- Importers claiming preferential duty; Customs Brokers
In 30 seconds
- Areca nut imports attract Basic Customs Duty of 100%; eligible SAFTA imports are fully exempt.
- Goods from Indonesia, Thailand, Malaysia and others were routed through an EPZ in Bangladesh and declared as Bangladesh origin.
- SAFTA Certificates of Origin were fraudulently obtained.
- Nine arrested; about ₹75 lakh cash and around 160 MT areca nuts seized; one Customs Broker licence suspended.
हिंदी में सार
DRI ने सुपारी के आयात में SAFTA के दुरुपयोग का बड़ा नेटवर्क पकड़ा है। दक्षिण-पूर्व एशिया की सुपारी को बांग्लादेश की बताकर 100% कस्टम ड्यूटी से छूट ली जा रही थी; राजस्व हानि ₹2,500 करोड़ से ज़्यादा आँकी गई है और नौ लोग गिरफ़्तार हुए हैं।
How the route worked
According to the Directorate of Revenue Intelligence, the masterminds brought areca nuts from South-East Asian countries into an Export Processing Zone in Bangladesh, changed only the containers and bags, and sent the goods on to India as Bangladeshi-origin areca nuts. SAFTA Certificates of Origin were fraudulently obtained from Bangladeshi authorities.
Areca nuts originating in Bangladesh are entitled to exemption under SAFTA only if the imports meet the prescribed Rules of Origin criterion. Without it, the Basic Customs Duty is 100%.
What DRI did
- Simultaneous searches at premises of importers, Customs Brokers and IEC holders in Kolkata and Visakhapatnam.
- Seizure of around ₹75 lakh in cash and a live consignment of around 160 MT of areca nuts.
- Nine persons arrested. The investigation also found use of hawala channels and dummy entities.
- The licence of the Customs Broker firm that cleared most of these imports has been suspended by the competent authority.
The takeaway for importers
A certificate of origin on paper is not the end of the matter. Where a preferential duty is claimed, the goods must actually meet the Rules of Origin — and importers, IEC holders and Customs Brokers are all within the reach of the investigation.
Published 16 August 2026. Updated 2 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.