Customs get sleepless nights

Customs get sleepless nights as small packs turn smart

Big things come in small packages. And that is precisely what the Customs department is worried about. Small courier packets are being used not just to smuggle banned items such as sex determination kits but also some high-value stuff like drawing and designs that form part of project imports to avoid duty payment. The department is now training its guns on this activity in a big way as part of anti-evasion strategy.The issue that courier packages could be used for smuggling and evading duty figured at the meeting of the annual meeting of the chief commissioners and director generals of Customs, excise and service tax. The field formations have been instructed to pay special attention to prevent such cases. Chartering of aircraft for courier services has also increased, raising concerns that these also could have been used to bring banned substances into the country. While smuggling of certain goods that are prohibited in the country are common, there is a view that specialised products such as designs and drawings that form part of the valuation for project imports and were more valuable than the imported equipment can come in as books or printed material. Although the practice may not be rampant yet, the department has already upped its ante on this. Both project imports and exports have risen considerably in last two years, sources said. Smuggling of traditional items has given way to new items and new methodologies. Under-invoicing and over-invoicing, which would become a crime under the Prevention of Money Laundering Act, and false quoting of export codes have lately become more prevalent malpractices. With India signing free trade agreements and preferential trading arrangements with various countries, frauds such as misquoting the country of origin of the imported goods to evade duty have also come to light.