MAY 29, 2012

By G Jayaprakash, Superintendent of Central Excise  

DISHONEST CUSTOMS OFFICIALS AND TRADERS

SOME teachers say that frontier [customs] officers harass the people by levying excessive duties or permit robbers [by colluding with them] to attack trade routes; traders, on the other hand, bring prosperity through trade.

Kautilya disagrees. It is the frontier officer who promotes trade, whereas traders form cartels in order to raise prices [for the goods they sell] or lower them [for the goods they buy]; they are profiteers making one hundred panas on one pana or one hundred measures on one measure [of grain].

[Arthashastra.8. 4. 34 -36]

The above words of Kautalya [Chanakya], the proponent of Arthashastra, always remained as an inspiration for Customs and Excise Officials all over the world and specifically in India. They strive hard to replenish the treasury with in a hostile environment and ridicule. The necessity to adhere to the global trade fatwa's necessitated changes in customs laws preceded by verbal abuse of customs officials ignoring their services in mid-seventies to redeem the economy by sustained efforts in curbing smuggling and preventing foreign exchange drain. It is history that the then Government appreciated their work by awarding one-month salary to all customs officials of India in 1976, which is still unique without any parallel.

Do the above prophetic words of Chanakya appear to be insignificant and irrelevant in the changed scenario? No! It cannot be! The Directorate of Revenue Intelligence Headquarters proved it when they arrested a prominent business dignitary. He simply walked through the customs exit gate of the IGI Airport by giving to understand that he carried the permissible goods valued within Rs.25,000/, the free allowance allowed-; but examination of his baggage revealed differently. Goods worth Rs. 54,00,000/- more than 200 times were recovered from him! Prophetic words never fail. It is only an example. Why it happens? How the captain of a prestigious industrial house dared to ignore the Rules. Readers are reminded of the ‘B'IG names in different walks of life who paid enormous amounts when confronted by Customs Officials.

Globalization and the World Trade Organization's clout over policy formulations paved way for the hitherto Commercially Important People [CIP] to successfully transform themselves into Very Important Personalities {VIP}. They demanded and attained facilities and concessions from all corners in tandem with what was extended to VIPs. The rules and regulations too were no exceptions. The term Inspector Raj came in handy to convince the authorities for liberating the industry and its captains from controls and checks conceived and continued over the years by men of high values in different areas.

Often the procedures and documents prescribed (TBRE) were withdrawn due to the inability of the system for its enforcement. The inability of the system was concealed by the pretext of abolition of inspector raj in tandem with the liberalization policy. The Rules, Regulations and methods concerning the passenger baggage clearance are an example worth pondering.

Speedy clearance of baggage of passengers is a must for any civilized society. Should it be at the expense of the security of the nation, both political and economic? It is up to the wisdom of the legislature to fix the eligible allowances for a passenger coming to India or going out. It is a different matter how the officers understand the legislative changes. NACEN can impart knowledge, the catalyst identified by World Customs Organization for excellence, if authorities are serious about knowledge of officials on the subject they deal with.

We should also know our limitations. We are not having the modern devices to scan the baggage of passengers, their passports and other documents. We have only outdated X-ray machines in many of the Air Ports. Few minutes before the Customs officers for verification of passports and declaring the contents of baggage, can be considered inevitable in the light of September 11, 2002 without elaboration. The judgment of the Hon'ble High Court, Delhi directing the Customs department for evolving a method to keep a watch on frequent flyers should serve as an eye opener.

On a personal note, I will share an experience while working as an Inspector in Trivandrum International Airport. All the Airports were under heavy security after the blast in Chennai Customs Baggage Hall during 1984. One day, when all passengers of the Air Lanka flight left the baggage hall, an abandoned packet was noticed. All agencies were alerted and senior officials arrived. Suddenly I realized that the packet was similar to one carried by a passenger cleared by me. I found out the name of the passenger and shouting the name rushed to the taxi stand. Four of them were about to get into a taxi. Except one, all were carrying similar packets containing biscuits. On questioning, the one without the packet rushed to the baggage hall saying he failed to collect his packet. The sigh of relief to one and all on the job of removing it to a safe place etc. was evident. It was made possible only because of the procedure prevalent then for customs clearance- No one can walk through without declaring contents of the baggage.

On protecting revenue, it appears worth examining the present exemptions on wrist watches on person without value limit [Arrest and release of the Pune based industrialist by Mumbai DRI], import of laptop on every visit without an export certificate, import of video and photographic cameras without value limit on an oral declaration that it will be taken back with no method for its verification, full free allowance irrespective of duration between visits etc.etc by the appropriate authorities by ignoring the inspector raj syndrome and consider rewriting the baggage rules.The entry and departure of every passenger in to and from the country is an important event. It is a cross border transit and that needs careful verification and analysis. Mr.Walt Whitman's words are significant. ¶I believe a leaf of grass is no less than the journeywork of the stars¶. So the details of all passengers who come and go through the International Air Ports and Sea ports are significant irrespective of their status, luggage etc and at the customs front, the officer responsible for the exit of the passenger appears to be highly relevant for further future verification, if any required.

In the light of the present terrorist threats, appropriate authorities may consider returning to the old practice of all passengers declaring content of his baggage before the officer of Customs and pass through Customs with a pass issued by proper officer- both for incoming and outgoing passengers.The recent circular about detention of Satellite phone brought by passengers from abroad appears to support the above view.Exit cards, now in vogue in the import side can be introduced in the export side too with mandatory declaration of currencies and other goods being carried as evidence in case of detection of any violation. It may appear to be a novelty to the new generation.

The words of Justice KrishnaIyer in ¶Death & After¶ are worth quoting. ¶ Of course there may be hostility to any novelty¶.

Mahatma Gandhi gave the answer:

First, they ignore you.
Then they laugh at you.
Then they fight you.
Then you win.

As stated earlier, the ancient wisdom should guide and innovate for rendering services to international passengers and businessmen without sacrificing the interest of the nation by not allowing depleting the KOSA, the treasury. Let the rules governing passenger baggage be understood and enforced without bias or for personal gains and with a human face in tandem with the requirement and forbearance of a developing nation, through the eagle eye of the protectors of the economic territory of the nation.

The relevance of the Indirect tax system (Customs) as a tool for the protection of society is reflected in its role in containing ozone depleting substances during the deliberations at Copenhagen. Being the enforcing authorities for protection of geographical indication rights,the men and farmers are once again entrusted to the old Tribe [Customs]. The recent demand of FICCI to impose customs duty on capital goods once again reminds us about the role of customs in protecting domestic industry. Ensuring accountability of officials allowing passage of passengers and goods can weed out the black sheep within the system. This will enable the nation to be an effective partner in international co-operation for Trade.

[Views expressed are purely personal and dotted down while working in Trivandrum Air Customs]

[The author joined as Inspector of Central Excise in 1974 and is retiring this week as Superintendent of Central Excise - says he has no REGRETS]