Under Central government rules, machines with a payload capacity up to 7000 kg attract ADD, while those above that limit do not
With the investigation underway, the three wheel loaders remain detained at Indira Port. Representation pic/iStock
Mumbai Customs has uncovered an alleged fraud involving the tampering of identification plates on heavy machinery imported from China — an operation that, if undetected, would have enabled the importers to evade nearly Rs 2.5 crore in anti-dumping duty (ADD).
The suspected manipulation, described by investigators as a sophisticated attempt to cheat the Indian government, surfaced between October 31 and November 1, when a senior appraising officer conducted a surprise inspection at Indira Dock. Three Chinese wheel loaders imported by an Indian company were parked in the open yard after unloading. Under Central government rules, machines with a payload capacity up to 7000 kg attract ADD, while those above that limit do not.
During the initial inspection, the officer observed all three machines displaying QR-coded identification plates showing a payload of 7000 kg, which meant ADD was applicable. However, during a joint check the next day, all three machines were found with new plates — without QR codes — showing the payload as 7100 kg, placing them just above the duty threshold.
The overnight change raised a strong suspicion of deliberate misdeclaration. According to the Customs’ investigation, the original plates had allegedly been removed and replaced with counterfeit ones to falsely inflate payload capacity and avoid paying ADD to the Indian government.
Action taken
Following the discrepancy, Customs froze clearance of the machines and forwarded the case to the Special Investigation & Intelligence Branch (SIIB). After confirming plate tampering and inconsistencies across documents and physical inspection, SIIB elevated the matter to law enforcement.
Police confirmed that an FIR has now been registered against officials of the Indian importing company. This action follows an official complaint filed directly with the Mumbai Police by Senior Intelligence Officer Dinesh Kumar Mahawar of SIIB, who stated in his report that the suspected plate-switching amounted to a calculated attempt to defraud the Union government.
“This was not a clerical mistake. The plates were changed after landing at the dock. The intention appears to be to dodge anti-dumping duty,” a senior Customs official said. The three wheel loaders remain detained at the port as investigators review CCTV footage, port-entry logs, and conduct technical examinations of the original and replacement plates. If established, the case could become one of the most significant ADD-evasion attempts detected at Mumbai Port in recent years.
Anti-dumping duty
This is a special tariff imposed by the govt to protect domestic industries from unfairly cheap imports. For wheel loaders imported from China, ADD is applicable if the machine’s payload capacity is 7000 kg or below. If the payload is above 7000 kg, ADD is not levied. In this case, Customs officers first found QR-coded plates showing 7000 kg, while allegedly swapped plates showed 7100 kg.
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