Paradeep Phosphates Limited (PPL) reports that the Customs Department has seized a consignment of 25,000 MTs of Technical Grade Urea, valued at ₹103.30 crores. The seizure followed a search and involves allegations related to biuret content exceeding permissible limits. PPL is pursuing legal recourse for the provisional release of the goods, intended for captive use in NPK fertilizer production. The company is also contesting the testing methodology used by customs authorities.
Customs Department Action
The Customs Department has seized a consignment of 25,000 MTs of Technical Grade Urea belonging to Paradeep Phosphates Limited. The assessable value of the seized goods is ₹103.30 crores. The seizure occurred following a search conducted by the Customs Department, as communicated in a previous letter dated October 4, 2025.
Reasons for Seizure
The seizure is based on allegations that the imported urea has a biuret content exceeding permissible limits, as per a test report from the Central Revenues Control Laboratory (CRCL). The company is contesting this finding and the testing methodology employed by CRCL.
Company Response and Next Steps
Paradeep Phosphates is taking legal action to secure the provisional release of the seized goods. The company intends to use the urea exclusively for captive consumption as raw material in the production of NPK fertilizers at its Goa plant. They are also seeking a re-test of the samples using the procedure outlined in Indian Standard IS 1781: 2022.
Alleged Violations
Authorities allege that the Company appears to have violated DGFT notification No. 79/2015-2020 dated 18.03.2024 and contravened provisions of the Customs Act, 1962.
Impact on Operations
The company states that there is currently no material impact on financials or operations. It intends to utilize the material for manufacturing NPK fertilisers at its Goa plant.
Source: BSE
