Context:

On the occasion of its 67^th Foundation Day, the Department of Revenue Intelligence (DRI) released its annual “Smuggling in India Report 2023-2024”.

Key Highlights of the Report

Role of Indian Customs and DRI:

• They play a central role in protecting national security, safeguarding economic interests, and contributing to global efforts in combating smuggling and illicit trade.
• They also aim to combat money laundering and terrorist financing, crucial components of India’s strategic security framework.
• Their strategic enforcement, advanced technology, and strong international partnerships ensure that India remains a key player in the global fight against transnational criminal networks.
• DRI also keeps a watch on counterfeit goods and illegal items violating intellectual property rights, further protecting India’s economic interests.

Countering Money laundering and commercial fraud:

• In 2023-24, DRI seized foreign currency worth INR 12.38 crore in 25 cases, helping to combat illicit financial flows and supporting FATF priorities.
• In 2023-24, DRI booked 485 import cases with illegal benefits of INR 5,907.79 crore, including mis-declaration, undervaluation, and misuse of trade agreements like the ASEAN-India FTA.

Narcotic Smuggling: 

• In 2023-24, DRI seized over 8,223 kg of narcotic drugs and psychotropic substances, including 107.31 kg of cocaine, 48.74 kg of heroin, 136 kg of methamphetamine, and 7348.68 kg of ganja.
• The seizures indicate an increasing trend of smuggling of cocaine through air routes, increasing from 21 cases in 2022-23 to 47 in 2023-24.
• It is the only drug witnessing an upward trend in its smuggling into India.

Gold Smuggling and Syndicates:

• Gold smuggling into India remains a major issue, particularly through land borders and airports.
• India has become a major destination for illicit gold imports, with gold and silver predominantly originating from West Asia, including the UAE and Saudi Arabia.
• DRI seized 1,319 kg of gold in 2023-24, with land routes contributing 55% and air routes 36% of the seizures.
• Smuggling syndicates have adapted their tactics, using “mules (unaware victims)” of various profiles, including foreign nationals and airport insiders, to transport gold.

Cigarette and Areca Nut Smuggling:

• DRI disrupted international cigarette smuggling networks and seized around 91 million smuggled cigarette sticks valued at INR 178.82 crore in 2023-24.
• Areca nut smuggling has increased due to high domestic demand and price differences.
• DRI has been uncovering operations along the Indo-Myanmar and Bangladesh borders and maritime routes. 
• In 2023-24, DRI seized 6,377.925 MT of areca nuts.

International Cooperation and Partnerships mentioned in the Report:

• Indian Customs has signed Customs Mutual Administrative Assistance Agreements (CMAAs) with over 65 countries to enhance global trade security.
• In 2023-24, new agreements were signed with Armenia, Belgium, Russia, and Australia, expanding the scope of international collaboration.
• DRI represents Indian Customs in international cooperation, assisting in global enforcement efforts and participating in Global operations led by agencies like: - 
• World Customs Organization (WCO), 
• United Nations Office on Drugs and Crime (UNODC),
• European Anti-Fraud Office (OLAF).
• In 2023, India hosted the Global Conference on Cooperation in Enforcement Matters (GCCEM) in New Delhi (Theme: - “It takes a Network to fight a Network).”
• The conference included representatives from over 40 Customs administrations and international agencies.

The launch of Phase IV of ‘Operation SESHA’ aimed at curbing illegal timber trade, including red sanders, further demonstrated India’s commitment to international cooperation.