Companies importing Chinese goods via South East Asian countries under Finance Ministry's scanner

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Indian companies that are importing Chinese goods through South East Asian countries are under the scrutiny of the Ministry of Finance, CNBC-TV18 reported citing sources at the Customs Department. Chinese goods are being re-routed to India from other South East Asian countries which exploits Free trade Agreements (FTAs), it further said.

Customs Department is likely to resume physical inspections of imports from South East Asia as importers may be flouting rules of origin norms and  misusing FTA routes, according to the report.

Moneycontrol could not independently verify the news.

Many companies are importing finished goods under the garb of RMS and intermediates which violates norms, the Customs Department sources also told CNBC-TV18.

It further added that products such as garments, electronic goods, mechanical and mobile phone are being imported by the companies.

Imports from China have surged by 34 percent to over $78.5 billion in the first eight months of 2022, according to the CNBC TV-18 report.