07-December-2024-Special-Article

DRI REPORT: KEY HIGHLIGHTS ON SMUGGLING IN INDIA

The Directorate of Revenue Intelligence (DRI) has released a report showcasing a marked rise in smuggling activities across India, including drug trafficking, illicit currency trade, and contraband cigarettes. It also outlines the challenges and strategies required to tackle these issues effectively.

Key Findings of the DRI Report

Increase in Drug Seizures

• Rise in Cocaine Smuggling: Cocaine seizures more than doubled in FY24, with a 9% increase in overall smuggling cases.
• Methamphetamine Trafficking: Significant methamphetamine seizures were reported, especially in northeastern states like Assam and Mizoram.

Contraband Cigarette Smuggling

• 19% Increase: The first half of FY25 saw a notable rise in contraband cigarette smuggling, with Dubai emerging as a major transit hub.

Seizure of Illicit Currency

• Surge in Foreign Currency Seizures: Rs. 13.8 crore worth of foreign currency was confiscated in the first half of FY25, surpassing the previous year’s total of Rs. 12.4 crore.

Decline in Gold Smuggling

• Drop by 9%: Gold seizures decreased in FY24.
• Land Routes Dominate: Over 55% of gold seizures were linked to smuggling via Myanmar, Bangladesh, and Nepal.

Wildlife Smuggling

• Ongoing Challenges: The DRI confiscated 53.5 kg of elephant tusks and other wildlife products, highlighting continued issues with illegal wildlife trade.

Directorate of Revenue Intelligence (DRI)

About DRI

• Foundation: Established on December 4, 1957, the DRI evolved from the Central Revenue Intelligence Board (1953).
• Authority: Operates under the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Finance.
• Scope: Investigates smuggling activities, enforces customs laws, and tackles issues like money laundering and illegal wildlife trade.

Key Operations

• Cross-Border Efforts: Focuses on arms trafficking, terrorism financing, and counterfeit currency.
• Expanded Role: Includes combating commercial fraud and monitoring counterfeit currency.
• Annual Seizures: Recorded seizures worth Rs. 3,573 crore in FY23-24.
• Global Collaboration: Hosts international Customs enforcement meetings to enhance cross-border cooperation.

Challenges in Combating Smuggling

Corruption and Collusion

• Smuggling networks exploit corrupt practices, weakening enforcement mechanisms.
• Despite legal provisions, wildlife trafficking remains persistent.

Misuse of Free Trade Agreements

• Smugglers misuse trade agreements to misdeclare goods, allowing illicit products to enter markets.
• This poses threats to domestic industries and disrupts economic stability.

Inadequate Data

• Limited comprehensive data on smuggling activities hampers effective planning and resource allocation.
• While the NCRB provides partial data, gaps in reporting hinder strategic enforcement.

Technological Advancements by Smugglers

• Use of the dark web and cryptocurrencies has made drug trafficking harder to detect.
• The Narcotics Control Bureau (NCB) has reported increasing cases involving cyber tools.

Geographical Challenges

• India’s extensive borders with countries like Myanmar, Nepal, and Bangladesh make surveillance challenging.
• Diverse terrains further complicate efforts to monitor and control smuggling.

Changing Tactics of Smugglers

• Smugglers have shifted to sophisticated techniques, such as using “mules” and international departure gates to evade detection.

Strategies to Combat Smuggling

Strengthening Law Enforcement

• Enhanced Coordination: Foster collaboration among national and international agencies to improve operations.
• Capacity Building: Training programs under the Ministry of Home Affairs aim to strengthen enforcement capabilities.
• Example: The US Customs and Border Protection works with Canadian authorities to counter smuggling effectively.

Regulatory Reforms

• Free Trade Zones: Stricter regulations and monitoring of free trade areas can curb misuse.
• Regular Audits: Conducting inspections ensures compliance with trade laws.
• Example: The EU enforces stringent regulations to prevent smuggling through free trade zones.

Technological Investments

• Advanced Tools: Use of drones, data analytics, and automated surveillance systems enhances border and port monitoring.
• Example: Australia employs drones and automated systems for effective smuggling detection.

Public Awareness Campaigns

• Community Involvement: Educating the public about the societal impact of smuggling encourages reporting of suspicious activities.
• Example: The UK’s “Crimestoppers” campaign urges citizens to report drug trafficking and smuggling.

Conclusion

The DRI report highlights a growing trend in smuggling activities, reflecting both evolving tactics by criminal networks and challenges in enforcement. By strengthening law enforcement, reforming regulatory frameworks, leveraging technology, and involving communities, India can address these threats effectively. The collaborative approach will not only safeguard the economy but also protect wildlife and ensure national security.

Mains Question:

1. Examine the challenges faced by India in combating smuggling and suggest actionable strategies to curb illicit trade, as highlighted in the DRI report. (150 WORDS)