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Stay open: Customs mustn't let its green channel turn red
Stay open: Customs mustn't let its green channel turn red

Mint

timea day ago

  • Business
  • Mint

Stay open: Customs mustn't let its green channel turn red

As reported, the government is working on a strategy to take down an illicit but sophisticated network of 'import carriers' at Indian air and seaports—a gang of smugglers, i.e., masquerading as regular tourists. Of late, there have been many reports of duty-evasion cases. Among those that caught public attention, a Kannada actor was stopped at Bengaluru airport allegedly trying to smuggle in more than 14kg of gold in March. Authorities not only have the usual suspects under watch, but also people with 'special privileges' at airports. 'Import carriers' are suspected of sneaking in illegal quantities of gold, electronic gadgets and even Chinese toys, which face high tariff and quality barriers. So far, so usual. No one wants smugglers running rings around customs and police, who must enforce the law. But it would help to know exactly how widespread this problem is. Data should be made public so that sporadic slip-throughs do not become a basis for tighter policy. Also Read: Mint Quick Edit | Ranya Rao arrest: Let gold enter India duty-free The measures being discussed reportedly include making customs declarations more detailed, placing a cap on how often passengers—especially frequent flyers from trade hubs like Dubai, Hong Kong and Guangzhou—can avail annual duty-free allowances and tweaking the Atithi app's declaration system for stricter tracking and 'AI-based profiling.' Even if well intended, some of it sounds like a throwback to the days before India's economy was opened up. Back then, our duties were sky-high and airports were notorious for nosy and corrupt officials at customs, whose 'leave us a bottle' demand was so customary that it often went unstated, making a stop at the duty-free shop a ritual of passage. Rules began being eased in the 1980s. As arrival numbers rose, the opening of a walk-through green channel marked a big moment: those with nothing to declare could pass without their bags being opened for scrutiny. Also Read: Centre eyes tighter customs rules to curb smuggling by 'import carriers' What's puzzling is why so many outdated rules persist. There's a limit of about ₹50,000 on the value of goods an Indian resident can bring in free of duty from most countries. This is absurd, given that a single iPhone can cost twice that much. Bizarrely, this allowance varies by various criteria. Such caps should be uniform and set significantly higher if the idea is to keep commercial imports out and block a route that can be used to dodge duties. As the green channel's spirit of trust-based regulation is the current government's stated approach, it would be odd if customs clearance were to get more cumbersome. But then, we have not entirely escaped our long history of protectionism. India's 150% duty on Scotch whisky remains a globally cited example, though a free trade pact with the UK is expected to lower it. Other such agreements could ease other import barriers. If we agree in principle that imports are best eased for larger trade gains, then no policy tweaks should be made that will make it harder for common travellers to comply with our rules. Also Read: Raghuram Rajan: How emerging economies can prosper in a protectionist world Airports need to welcome arrivals, not daunt them. Indian customs declaration forms, whether on paper or digital, look like an anachronism for their complexity. They are a reminder of the closed economy we once had, when packing one's personal stuff would risk flying into a customs web in India. None of this is an argument for authorities to drop their guard against smuggling. Wilful evaders of customs duty need to be nabbed, but let's also keep overreach in check. Don't let the green channel start turning red.

Centre eyes tighter customs rules to curb smuggling by ‘import carriers'
Centre eyes tighter customs rules to curb smuggling by ‘import carriers'

Mint

time4 days ago

  • Business
  • Mint

Centre eyes tighter customs rules to curb smuggling by ‘import carriers'

New Delhi: The central government is working on a strategy to dismantle a sophisticated, illicit network of so-called 'import carriers' at India's bustling airports and seaports, according to two people aware of the matter who spoke on the condition of anonymity. Import carriers–who may masquerade as regular Indian tourists going abroad, some may even have special privileges–smuggle in goods beyond permissible limits or which may be banned in the country. They bring in items like gold, toys, electronics and the like from overseas, bypassing customs checks, and pass the goods on to other entities in the country for commercial use. To curb this practice, the commerce ministry plans to ask the finance ministry to direct the CBIC (Central Board of Indirect Taxes and Customs) to update baggage rules in the Customs Act, without causing any inconvenience to regular passengers, the people cited above said. Read more: Storm in a teacup: Should Indian workers in the UK be exempt from payroll tax? Current regulations allow Indian residents to bring in goods from overseas worth up to ₹50,000 duty-free, and up to ₹1,00,000 from some West Asian countries, beyond which customs duty applies. Further, under the Customs Act, 1962, passengers must declare dutiable or banned goods and can hand over bags for clearance. Using these rules for commercial imports is illegal, and can lead to confiscation or penalties. Measures being discussed include making declarations more detailed, placing a cap on how often passengers—especially frequent flyers from trade hubs like Dubai, Hong Kong, and Guangzhou—can avail duty-free allowances annually, and enhancing the existing Atithi app's digital customs declaration system with AI-based profiling and stricter tracking, the persons cited above said. The Atithi app, launched by the CBIC in November 2019, enables international travellers to electronically file customs declarations for dutiable items and currency in advance, streamlining the customs clearance process upon arrival in India. 'Most of the goods moved through the import carrier network are sourced from trade hubs of China and Dubai, with electronics and gold being the top items particularly on flights originating from Hong Kong, Guangzhou, Shenzhen, and Dubai," said the first person cited above. 'There are also discussions to increase collaboration with airport authorities and customs field formations to flag repeat offenders and prevent this backdoor route from being used for commercial gain." 'We have identified certain products such as electronic items, toys, luxury goods, garments, and gold to be brought under review," said a second person aware of the matter. Queries sent to the ministries of commerce, finance, and civil aviation remained unanswered till press time. How the import carrier network works Let us illustrate how import carriers work with an example. Say, a toy shop owner wants to sell Chinese toys in Delhi, which cannot be legally imported. The shopkeeper would pay a customs handling agent–a private employee–to facilitate the illicit import, who would in turn pay an import carrier (or more) to visit China as a tourist and bring in the toys as part of personal baggage. Once the trip is over, the toys brought in go back through the network and land in the toy seller's shop. Each such import carrier makes multiple trips, multiplying the volume and value of undeclared goods sneaked into the country. An industry executive who requested anonymity said that import carriers are so well-trained that they can bring in goods without any checks and have them delivered directly to homes, offices, or warehouses. Read more: Energy security: India needn't be staring at a $1 trillion import bill 'It is a known fact that the import of toys from China is completely banned, yet Chinese toys can be easily found in many parts of the country," this executive said. 'This is all happening through these import carriers, which is harming our domestic manufacturing ecosystem and causing significant revenue loss." 'There is an immediate need for government intervention to curb such illegal trade practices, which are harming the domestic manufacturing ecosystem and resulting in significant revenue loss to the exchequer," said C.K. Govil, president of The Air Cargo Agents Association of India, while adding that Prime Minister Narendra Modi's focus on domestic manufacturing would gradually diminish such illegal practices. However, experts are of the view that if India adopts a more liberal trading regime with lower tariffs and fewer restrictions, it could not only reduce the incentive for smuggling but also improve enforcement focus. 'A liberal trading regime with most of the world would put most smugglers out of business," said Rahul Ahluwalia, founder and director of the Foundation for Economic Development (FED), a policy think tank. 'We would also be able to focus enforcement capacity on truly dangerous contraband instead of turning normally traded goods into contraband." High-profile cases To be sure, the modus operandi is not only being used by regular folks, but also by celebrities and people with access to diplomatic channels. One such instance is the case of Kannada actress Ranya Rao, also known as Harshavardini Ranya, who was arrested at Bengaluru airport on 3 March 2025, for allegedly smuggling 14.2 kg of gold from Dubai. According to a report by The Indian Express, she used the US passport of her associate and co-accused, Telugu actor Tarun Raj Konduru (alias Virat Konduru), to bypass Dubai customs checks and move the gold into India. In another case, Shiv Kumar Prasad, a former personal assistant to Congress MP Shashi Tharoor, was held at Delhi's IGI Airport in May 2024 for allegedly receiving gold worth ₹35.2 lakh from a passenger arriving from Bangkok. He reportedly used his official Aerodrome Entry Permit to facilitate the illegal transfer. In another case in 2020, Swapna Suresh—a former UAE consulate employee and consultant to the Kerala IT department—was arrested after 30 kg of gold was found in diplomatic baggage. Exact figures on illegal imports into India are unavailable, but reports reveal significant scale. The Directorate of Revenue Intelligence seized over 1,300 kg of smuggled gold in 2023-24, while industry estimates suggest around 700 kg of gold is smuggled daily, causing annual losses of nearly $10 billion. Electronics and luxury goods are also commonly smuggled, with recent seizures at Mumbai airport worth crores. India's trade deficit with China surged to a record level in the fiscal year ended 31 March, almost touching the $100 billion-mark. India exported goods worth $14.25 billion to China in 2024-25, and imported $113.45 billion worth of goods. While the exports have dipped 14.4% year-on-year, imports have jumped 11.5%, according to data from the commerce ministry.

Uttarakhand CM Dhami welcomes all devotees visiting Hemkund Sahib shrine
Uttarakhand CM Dhami welcomes all devotees visiting Hemkund Sahib shrine

Time of India

time25-05-2025

  • Time of India

Uttarakhand CM Dhami welcomes all devotees visiting Hemkund Sahib shrine

Uttarakhand Chief Minister Pushkar Singh Dhami welcomed and extended greetings to all devotees visiting Shri Hemkund Sahib Ji shrine in the State. In a post on X, CM Dhami shared, "Whoever says this is happy, Sat Sri Akaal..! Hearty welcome and greetings to all the devotees coming from the country and abroad to visit Shri Hemkund Sahib Ji in Devbhoomi Uttarakhand. " The first batch of Sikh devotees, led by the Panch Pyaras, commenced their journey to Shri Hemkund Sahib for the 2025 pilgrimage. The group departed carrying the Nishan Sahib (holy flag) under full police protection, Chamoli Police said in a post on X on Saturday. In their message, Chamoli Police stated, "Shri Hemkund Sahib Yatra 2025: The first group of Sikh devotees, led by the Panch Pyaras, has set out for Shri Hemkund Sahib with the Nishan Sahib and complete police security." The police have ensured comprehensive security arrangements to facilitate a safe and smooth pilgrimage for all devotees. Following the departure of the first batch of pilgrims for Hemkund Sahib on Thursday, Chief Minister Pushkar Singh Dhami welcomed devotees from across the country and the world, emphasising the state's commitment to a secure and well-managed pilgrimage to the revered Sikh shrine near Joshimath in Chamoli district. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo The portals of Hemkund Sahib, situated at a height of over 15,000 feet above sea level, will open on May 25. The shrine is visited by lakhs of devotees every summer. Addressing mediapersons as the first batch departed for the pilgrimage, CM Dhami said, "The doors of Shri Hemkund Sahib will open on May 25. All the arrangements have been made for the devotees." "I thank PM Modi as the Government of India has approved the ropeway for Kedarnath and Shri Hemkund Sahib. The difficult journey will become very easy in the coming time. We welcome all the devotees coming from across the country and the world," the Chief Minister added. Uttarakhand Governor, Lt Gen Gurmit Singh (Retd), also welcomed the devotees and expressed gratitude to the Chief Minister and other administration for preparing the arrangements. "We see it as 'Atithi Devo Bhava'. I thank the Chief Minister, the administration, and the Gurudwara Prabandhak Committee for working so hard to make every devotee's visit successful," the Governor said.

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