'Customs seized cleared goods, Rs 8L+ guarantee stuck for 18 months': Startup founder shares import ordeal

Sagar Awatade, founder of medical‑tech startup Oracura, on Sunday revealed a long‑running dispute with Air Cargo Customs in India, claiming that his company's over Rs 8 lakh bank guarantee has been immobilised for 18 months and goods that were cleared were later seized from its warehouse.

Awatade detailed how Oracura has battled customs issues while trying to localise production over the past three years. "Our 8L+ bank guarantee has been stuck with Air Cargo Customs for 18 months. Goods that were already cleared by customs were later seized at our warehouse, even though inspected at clearance," he said in a detailed post on X. "We appealed, but the case has been ongoing for 18 months."

He added that Oracura's significant market share means the disruption has had wide effects, but asserted that it is not only his company's challenge but a broader industry problem. "This is no longer an Oracura issue, it's recognised as a common industry challenge," he said.

Awatade said that in connection with a classification dispute over "water flossers," he was personally detained at the Directorate of Revenue Intelligence (DRI) office, repeatedly summoned over three months, and subjected to pressure without rest. "It was tremendous pressure. But we didn’t bend or pay anything," he maintained.

The founder admitted that the situation might have been prevented had the company sought an advance ruling before importing. "We realized later that if we had taken an advance ruling before imports, this issue might not have happened." He and peer firms reportedly approached the Central Board of Indirect Taxes and Customs (CBIC) in Delhi and the TRU unit for a solution, but claim no definitive resolution has yet arrived.

Awatade also highlighted compliance requirements under customs rules-such as mandatory EPR certificates for battery, PCB, and plastic imports and BIS regulations-as sticking points. He said that shipments were once stalled until Oracura paid extra fees for expedited clearance. "We're a bootstrapped company, running fully on bank limits with tight margins. Sometimes it feels easier to deal with customs than banks," he said.

Beyond customs, Awatade said his startup has struggled with recognition under tax incentives. "As startups, we're also facing income tax exemption issues with DPIIT, which CBDT hasn't recognised. For the last two years, we've been paying MAT 18% instead of getting exemptions." He also described uncertainty in BIS norms across departments as another hurdle.

He also acknowledged government support: Oracura got exposure at the Dubai North Star show in 2024 and was selected as a MedTech startup for IEC GM 2025 in Delhi, with costs covered. He thanked departments like DPIIT, Customs, and the government for such opportunities.

Awatade ended his post with a call to perseverance and collective action: "We must keep moving, keep raising our voice, and keep knocking until things improve. That’s the only way forward."

The post comes amid renewed attention to alleged customs harassment in India. The issue surfaced after Tamil Nadu‑based firm Wintrack Inc claimed "relentless harassment" by Chennai Customs and announced that would cease import‑export operations from October 1.