Government launches probe into illegal import of diesel

Published on : March 04, 2016 Topic : Export
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ITAHARI, March 4: The government has launched probe into illegal import of diesel through Biratnagar Customs Office during blockade imposed by India.

The Itahari Office of Department of Revenue Investigation (DoRI) and eastern regional office of Commission for the Investigation of Abuse of Authority (CIAA) have jointly begun investigation into the case.
The two government agencies started investigation after it was revealed that a large volume of diesel was imported illegally into the country through the customs office in the name of base oil and furnace oil during the crisis.

Republica on Wednesday reported that traders imported large volume of diesel in the name of base oil and furnace oil to take benefits from difference in customs duty. While importers will have to pay Rs 20 per liter as custom duty for diesel, custom duty for base oil is only Rs 15 per liter. Likewise, the government levies only five percent customs duty on furnace oil.

Data of Biratnagar Custom Office shows that 91 consignments of base oil and furnace oil entered Nepal during the blockade.

Gaurishankar Upadhaya, chief of Itahari Office of DoRI, told Republica that they will ask Fujima Oil Company of Morang, one of the importers of base oil and furnace oil, to furnish its procurement document. "We will take needful action after studying the documents and sample of oil imported by it," he added.

According to Biratnagar Customs Office, Fujima Oil Company imported 219,960 kiloliters of base oil in five consignments during the blockade. Similarly, Dallu Raj Basnet, regional chief of CIAA, said that a joint investigation will be launched into the case as is under DoRI's jurisdiction.

Base oil is used as raw material by lubricant producers.

As the Biratnagar Customs Office doesn't have laboratory to test the quality and type of oil being imported, traders took undue benefits and imported huge quantity of diesel in the name of base oil and furnace oil.

Source: Republica
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