Hyderabad: Directorate General of Foreign Trade curbs on raw human hair exports

HYDERABAD: The Directorate General of Foreign Trade (DGFT) on Tuesday issued notification restricting human hair export in raw form. This is expected to curb the under-invoicing of the product and smuggling via Myanmar to China.
TOI had published a series of reports on human hair smuggling to China and the Enforcement Directorate (ED) had earlier conducted searches following TOI expose and booked cases against exporters involved in smuggling.
The DGFT notification stated, "The export of human hair, unworked, whether or not washed or scoured, waste of human hair or any other form of raw human hair has been put under restricted category with immediate effect."
Human Hair and Hair Products Manufacturers and Exporters Association welcomed the government move, but demanded a total ban in future.
Benjamin Cherian, the founding president of the association, told TOI, "It is the first step to deter smugglers and those exporters resorting to under-invoicing. The DGFT notification will make the job of these illegal exporters tough as they have to get a licence following due procedure and scrutiny. However, we are afraid that some unscrupulous elements will still try to find a way. A complete prohibition would help in stopping illegal exports."
He added, "India is the world's largest producer of human hair. Eighty per cent of world hair is produced here, but we make only 2% of value-added products such as wigs. The raw material is going to China. We have lost several jobs in the industry so far."
The association asked the central government for help in sourcing better technology from Korea.
"Bleaching of hair, wig making and other work can add value to the products. Currently, official exports are restricted to Rs 3,000 crore, whereas unofficial smuggling would be much more. Money is coming back via hawala, gold and other means from Myanmar and China," said Cherian.
ED probe had revealed that around Rs 16 crore was paid to human hair merchants by Chinese online betting app companies as part of hawala transactions. Two human hair exporting firms based in Hyderabad alone got Rs 3.4 crore from the Chinese companies.
TOI investigation had found that Myanmar citizens are permanently stationed in Hyderabad, purchasing human hair locally and then exporting it to Myanmar at under-valued prices.
A probe under FEMA revealed that domestic merchants were aggregating and selling raw hair to foreign merchants based in Hyderabad, Guwahati and Kolkata. This was smuggled out by road via Moreh (Manipur), Zokhawthar (Mizoram), Aizawl (Mizoram) to Mandalay (Myanmar). Ultimately, it found its way to China where it was labelled as domestic Chinese hair and processed.