Nirmala Sitharaman, the Union Finance Minister of India, has called upon customs authorities to harness technology and share actionable intelligence to deter illegal trade activities. During the Global Conference on Cooperation in Enforcement Matters held in New Delhi, she emphasized the importance of international cooperation to dismantle smuggling networks and apprehend their leaders. As global trade expands, Sitharaman highlighted the necessity for a collective effort to combat smuggling, emphasizing the role of the World Customs Organisation (WCO) in establishing a global framework for legislation and procedures to address this issue effectively.
Leveraging Technology and International Cooperation
Sitharaman stressed the dual role of customs departments worldwide in facilitating international trade while simultaneously preventing and deterring illegal trade. She emphasized the need to combat activities that endanger wildlife and flora, underlining the importance of capturing the kingpins behind smuggling networks. The proposed collaboration with the WCO aims to create a global template for legislation and procedures, particularly in a technology-driven era, ensuring that these regulations are not contradictory.
Challenges of Expanding Trade
Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes and Customs (CBIC), noted the substantial growth in international trade, with goods trade valued at approximately $25 trillion in 2022 and services trade at about $7 trillion. As globalization and economic growth continue, the potential for the unlawful movement of restricted items such as antiques, cigarettes, gold, and endangered wildlife species rises. Agarwal highlighted the persistent challenge of global drug trafficking, estimated to be worth $650 billion and contributing significantly to the illicit economy.
Addressing Multidimensional Smuggling Challenges
Sanjay Malhotra, Revenue Secretary, pointed out that the rapidly evolving digital world blurs the boundaries of nation-states, creating a formidable challenge for enforcement agencies worldwide. Smuggling, a multidimensional issue, negatively impacts a country’s economy and national security. It involves a wide range of contraband, from drugs and weapons to counterfeit goods and wildlife trafficking. To effectively counter such cross-border crimes, international cooperation and coordination among various agencies and countries are crucial.
Adapting to Evolving Smuggling Methods
Agarwal highlighted the increasing sophistication of smugglers, who exploit global supply chain complexities and use technology to avoid detection. The rise of e-commerce and the use of crypto assets in cross-border transactions have added complexity to the challenge. To address these issues, Indian Customs is adopting a risk-based approach and leveraging cutting-edge technologies such as Big Data Analytics, Artificial Intelligence, and Image Analytics. They are embarking on AI-based image analytics to centralize and automate risk detection in container scanning.
Operation Shesha-IV
The Indian government has launched Operation Shesha-IV in collaboration with the Department of Revenue Intelligence (DRI) to combat the smuggling of timber, particularly red sanders. This initiative, building upon previous editions of the operation, aims to prevent the illegal trade of red sanders, which is endemic to the Seshachalam forest in India. This joint international effort involves various agencies and signifies India’s commitment to addressing the challenges posed by illegal trade.
