Stay open: Customs mustn’t let its green channel turn red
The task of catching ‘import carriers’ and other evaders of customs duty at airports shouldn’t add friction to the process of entering India. Refrain from policy overreach and revise rules that are relics of a closed economy.
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What’s puzzling is why so many outdated rules persist.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.
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