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India is ‘losing’ more than 150cr a year to human hair smuggling | India News

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NEW DELHI: An unusual drop in the price of exported human hair shipments has led customs officials to a smuggling route ending in China, reportedly costing India more than 150 million rupees each year in income taxes.
An alert sent by the special investigations branch of customs in West Bengal said some exporters of human hair are “artificially lowering” the value of their shipments, of a variety called 0501, to Myanmar, Bangladesh and Vietnam.
Known as ‘goli’, ‘chutti’ and ‘thutti’ throughout India, one kilogram costs between 4,500 and 6,000 rupees. But the top five exporters, for example, showed that their shipments were priced between Rs 27.8 and Rs 1,400 per kilo. “Average unit price has decreased significantly from 2017 onwards,” the alert said.
When customs officials surveyed Purba Medinipur in West Bengal, they found that the same hair was selling for between Rs 2,800-5,600 per kilo. This undervaluation allows the evasion of FEMA and income tax compliance, and bypassing the 28% import duty imposed by China when smuggling products across its borders.

Times of India

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