According to sources, the main players in the drama who have committed large scale frauds are some Calcutta-based firms having their base in Nepal. These firms have been taking advantage as all Nepalese imports are routed through Calcutta.

These firms have set up marble cutting units technically in Nepal. However, these units are located close to the Indian border. Once the consignment of rough marble blocks is imported through Calcutta, these cutting units slice them into slabs and re-export it as marble of Nepalese origin.

Sources pointed out that the only variety of marble of Nepalese origin is the cheaper brownish variety, whereas what is being exported to India with the `made in Nepal' tag is the expensive Italian variety. These consignments are cleared after imposing anominal rate of duty as Nepal and India both are signatories to the trade treaty under the Saarc agreement. Thus, while the actual importers are Calcutta-based firms owned by Indians, the supplies are effected by their fronts based in Nepal who are operating the cutting unit for a hefty commission. This still leaves a huge profit margin in the Indian market for the importers, who in reality are the Nepal-based exporters.

According to customs sources even the valuation of the imports from Nepal are invariably low compared to the values acceptable for imports from Italy and Iran. Since the consignments are diverted from Nepal, it also offers an easy hawala route for remitting the differences.

While the Calcutta-based firms are using the Nepal route, there are 100 per cent EOUs operating all over the country which are importing marble for re-export purpose. However, according to sources, these units are buying Indian marble on a large scale from quarries and markets in and around Jaipur and Udaipur. Customssources claimed that some of the consignments exported by these EOUs comprised articles made of Indian marble which is declared as `processed imported marble for re-export'. This indicated that large consignments of varieties of Italian marble imported without any duty being recovered is vanishing into the domestic market while the same lots are being replaced by the Indian marble which is exported.