Indian Customs Seize Ship with 309 Containers of Walnuts Over Fake Origin Claims
Comoros-flagged vessel detained at Nhava Sheva port for mis declaring Iranian walnuts as Afghan produce
Officials suspect ₹50 crore duty evasion under SAFTA trade benefits
By Legal Reporter
New Delhi: February 19, 2026:
In a major crackdown on trade fraud, Indian Customs officials have detained a vessel carrying 309 containers of dry fruits, primarily walnuts, at Nhava Sheva port, Mumbai. The cargo, shipped from Bandar Abbas in Iran, was allegedly mis declared as originating from Afghanistan to exploit duty-free benefits under the South Asia Free Trade Agreement (SAFTA). Investigators estimate a ₹50 crore duty evasion, making this one of the largest seizures in recent years.
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Background of the Case
- The detained vessel, WIV Reyfa, is Comoros-flagged and was intercepted following a tip-off from the Directorate of Revenue Intelligence (DRI).
- Importers allegedly forged transit documents to falsely claim Afghan origin, which qualifies for zero import duty under SAFTA.
- One person has been arrested, and further investigations are underway to identify the syndicate behind the fraud.
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Relevant Laws and Provisions
- Customs Act, 1962 – Misdeclaration of goods’ origin constitutes a violation under Sections 111 and 112, leading to confiscation and penalties.
- Foreign Trade (Development & Regulation) Act, 1992 – Governs import-export compliance; fraudulent documentation can attract prosecution.
- South Asia Free Trade Agreement (SAFTA) – Provides duty-free access to goods from member countries like Afghanistan. Misuse of SAFTA benefits amounts to trade fraud.
- Prevention of Money Laundering Act (PMLA), 2002 – If proceeds of fraud are laundered, PMLA provisions may apply.
Why This Matters
- Economic Impact: Duty evasion of ₹50 crore affects government revenue and undermines legitimate trade.
- Agricultural Trade Integrity: Fraudulent imports distort market prices, hurting genuine walnut producers in India and Afghanistan.
- National Security Concerns: Forged documents and mis declared cargo raise questions about supply chain transparency and border security.
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Broader Implications
- For Importers: The case highlights the risks of fraudulent practices and the need for strict compliance with customs regulations.
- For Consumers: Mis declared goods may bypass quality checks, raising concerns about food safety.
- For Regulators: The seizure underscores the importance of enhanced scrutiny of agricultural imports, especially high-value commodities like walnuts.
Expert Views
Trade experts say the case reflects growing misuse of preferential trade agreements. Legal professionals emphasize that customs authorities must strengthen verification mechanisms to prevent origin fraud. Economists warn that such scams undermine India’s credibility in international trade.
Conclusion
The detention of a ship carrying 309 containers of walnuts falsely declared as Afghan produce is a landmark enforcement action by Indian Customs. By invoking provisions under the Customs Act and SAFTA, authorities have sent a strong message against trade fraud. With investigations ongoing, the case is expected to set a precedent for stricter monitoring of agricultural imports and better enforcement of trade laws.
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