‘Made in India’ Tags on Nepal-Made Plywood Trigger DRI Investigation

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The Indian Department of Revenue Intelligence (DRI) has reportedly launched an investigation into plywood exports from Nepal after discovering consignments labeled “Made in India” despite being manufactured in Nepal.

According to industry and customs sources, the probe is underway at two border points. Six trucks are being held at Jogbani customs in Bihar, while eight trucks are under inspection at Panitanki customs in West Bengal. The trucks belong to Nepalese manufacturers certified by the Bureau of Indian Standards (BIS) to export plywood to India.

Hom Prasad Ghimire, president of the Nepal Plywood Manufacturers Association, described the checks as part of DRI’s routine inspections, noting that trucks with no issues have been released after verification. However, customs officials at Mechi Customs Office said the exact reason for the Panitanki detentions has not been officially clarified.

Sources familiar with the matter claim that some Nepalese plywood producers may have been exporting products from non-BIS-certified factories under the names of certified companies, while in certain cases, Nepal-made plywood was allegedly marked “Made in India.” These concerns have reportedly triggered the DRI’s scrutiny.

Umesh Shrestha, chief of Biratnagar Customs Office, confirmed there have been no export disruptions through his jurisdiction and said he was not informed about the Panitanki inspections.

Diwakar Rathi, owner of Greenply Industries in Biratnagar, stated that his company’s shipments through Biratnagar remain unaffected. He noted that some of his trucks were previously returned from Indian customs, but only due to payment delays by Indian importers, not regulatory issues.

Nepal exported plywood worth approximately Rs 7.43 billion in fiscal year 2023/24, up from Rs 4.7 billion in 2022/23 and Rs 350 million in 2021/22. Of the country’s 75 operating plywood factories, nine currently hold BIS certification to export to India.

 

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