Chemical Importer — Statutory Audit Across Customs & Incentives
A trading company importing and distributing chemicals operated in a high-exposure customs environment. Our statutory audit paired the financials with close attention to customs valuation, evasion red flags and correct booking of export incentives.
Margins and compliance riding on every consignment.
For a chemical importer, the audit risk lives at the border. Customs valuation and HSN classification drive the duty cost, related-party imports invite scrutiny, and incentive schemes such as RoDTEP must be booked correctly or left on the table. The company needed assurance that its Bills of Entry tied back to its purchase ledger and duty payments, that nothing in its import pricing exposed it to an evasion finding, and that its export incentives were being recognised properly in the books.
How we audited the import-export cycle.
Bill of Entry Reconciliation
We matched Bills of Entry to the purchase ledger and customs duty actually paid, surfacing mismatches between declared and recorded values.
Customs Valuation Review
We tested HSN classification and transaction value, with particular care on related-party pricing, to flag any undervaluation or evasion exposure.
Incentive Verification (RoDTEP)
We checked that RoDTEP and other export incentives were computed and booked correctly, so genuine entitlements were claimed and over-claims avoided.
Forex & Import Compliance
We reviewed exchange-rate accounting on imports and alignment with FEMA and RBI requirements on inward and outward remittances.
The capabilities we brought to bear.
Import-Export Compliance
End-to-end reconciliation of customs documentation against the books and statutory filings.
Customs Valuation & Classification
Scrutiny of HSN codes and transaction value to manage duty cost and evasion risk.
Export Incentive Booking
Correct recognition of RoDTEP and allied incentives within the financial statements.
Forex Accounting
Exchange-difference treatment and FEMA-aligned handling of cross-border payments.
The results we delivered.
For an importer, the riskiest numbers never sit in the trial balance — they sit on the Bill of Entry. A good audit follows the consignment, not just the ledger.