New Delhi, Aug. 4 -- The Directorate of Revenue Intelligence (DRI) may soon launch an investigation into steel imports from Nepal and China.

This move comes amid suspicions of tax evasion and misuse of Free Trade Agreements (FTAs) that allow duty-free access to certain goods under specific conditions.

According to senior government officials, there are signs that some importers might be wrongly availing duty exemptions on hot-rolled and cold-rolled steel products.

The DRI is particularly focused on imports declared as originating from Nepal, which may have actually come from China or other countries.

Since China-made steel is subject to anti-dumping duties in India, rerouting such goods via Nepal could be a way to bypass taxes.

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