Corruption in Exports/Imports
I am glad that Transparency International has finally taken up the most open corruption issue. I am puzzled to make out from where should I start. I had offered myself for discrete investigation by the anti corruption wing of Govt. Of India (or any other agency) if they actually want to understand the modus operandi of the rampant corruption in customs. There are many factors for corruption in customs:
1. The officers are paying a lump sum amount for posting at a particular location which goes up to 5 lacs depending on the location and designation. The officers then try to raise at least 4 times of the amount paid for posting during the tenure of 3 months to 1 year, etc.
2. There are so many things that the customs officers can pull out against any shipment (genuine) to make money. Please remember that the shipments are always urgent for various reasons and the exporter / importer cannot afford for delay. So they offer some 'speed money' to clear the shipments at the earliest. Now all the people are paying this so called speed money to get their work done which has got no meaning of any speedy clearance. The exporters are paying around Rs.800/- to Rs.1000/- for normal clearance (carting on the first day and clearance on the 2nd day) and Rs.1500/- to Rs.2500/- for Urgent Clearance (carting and clearance on the same day).
3. If there is any mistake on the documents then additional charges are imposed to clear the matter which depends on the nature of the mistake. Even for silly mistakes and typo error on the documents, customs officers charge huge amount. If anyone confront and ask for official procedure then they will forward the file to senior officers who then order for amendment which takes time. The senior officers (Deputy Commissioner / Assistant Commissioner) has the discretionary power to impose fine / penalty for the amendment which is a minimum of Rs.5000/- upto lakhs of rupees. Please remember there is a fee for amendment which is approximately Rs.1000/- To avoid all these expenses and the procedural delay, the exporters / importers prefer to settle the matter on the spot by paying to the P.O./Superintendent/Examiner/Appraiser level.
4. Those who are doing something wrong, they make the arrangement beforehand (setting!) and those shipments are never delayed or objected!! It includes over-invoicing (exports) / under invoicing (imports), mis-declaration, etc. Sometimes such shipments are forwarded to SIIB (Special Intelligence and Investigation Branch) / CIU (Customs Intelligence Unit) where the setting shipments are cleared with some fixed amount but the genuine shipments (referred may be for not getting the demanded additional amount) are held up. I am not going in to the details of the harassment and demand for extra money.
5. Almost all the above collections of cash are taken by the Collection Agent of each officer who are chosen from regular CHA personnel. A collection agent disclosed all the names a year back before suicide which was reported in the media (Nhava Sheva).
6. Many CHA / importers shift from port to port (Nhava Sheva / Chennai / Kolkata / Delhi ICD) as per the posting of their favourite officers to get the necessary setting smoothly.
7. The above points are only a glimpse of the corruption! As per an estimate, there is a cash transaction of approximately 10 crores in a day only at Nhava Sheva. Imagine the nexus - everybody is hands in gloves including CBI (forget about CIU or SIIB).
This is why it requires secret investigation in disguise with the help of common users to catch hold of these nexus. I had offered myself for the operation to PMO and other ministry for the same but no response received in 3 years. I was hopeful that the present dispensation will act sincerely to eradicate one of the biggest corruption segment but not yet experienced any such thing.
I know an Additional Commissioner was forced to resign as he was honest and threatened for dire consequences from his own department!! more
1. The officers are paying a lump sum amount for posting at a particular location which goes up to 5 lacs depending on the location and designation. The officers then try to raise at least 4 times of the amount paid for posting during the tenure of 3 months to 1 year, etc.
2. There are so many things that the customs officers can pull out against any shipment (genuine) to make money. Please remember that the shipments are always urgent for various reasons and the exporter / importer cannot afford for delay. So they offer some 'speed money' to clear the shipments at the earliest. Now all the people are paying this so called speed money to get their work done which has got no meaning of any speedy clearance. The exporters are paying around Rs.800/- to Rs.1000/- for normal clearance (carting on the first day and clearance on the 2nd day) and Rs.1500/- to Rs.2500/- for Urgent Clearance (carting and clearance on the same day).
3. If there is any mistake on the documents then additional charges are imposed to clear the matter which depends on the nature of the mistake. Even for silly mistakes and typo error on the documents, customs officers charge huge amount. If anyone confront and ask for official procedure then they will forward the file to senior officers who then order for amendment which takes time. The senior officers (Deputy Commissioner / Assistant Commissioner) has the discretionary power to impose fine / penalty for the amendment which is a minimum of Rs.5000/- upto lakhs of rupees. Please remember there is a fee for amendment which is approximately Rs.1000/- To avoid all these expenses and the procedural delay, the exporters / importers prefer to settle the matter on the spot by paying to the P.O./Superintendent/Examiner/Appraiser level.
4. Those who are doing something wrong, they make the arrangement beforehand (setting!) and those shipments are never delayed or objected!! It includes over-invoicing (exports) / under invoicing (imports), mis-declaration, etc. Sometimes such shipments are forwarded to SIIB (Special Intelligence and Investigation Branch) / CIU (Customs Intelligence Unit) where the setting shipments are cleared with some fixed amount but the genuine shipments (referred may be for not getting the demanded additional amount) are held up. I am not going in to the details of the harassment and demand for extra money.
5. Almost all the above collections of cash are taken by the Collection Agent of each officer who are chosen from regular CHA personnel. A collection agent disclosed all the names a year back before suicide which was reported in the media (Nhava Sheva).
6. Many CHA / importers shift from port to port (Nhava Sheva / Chennai / Kolkata / Delhi ICD) as per the posting of their favourite officers to get the necessary setting smoothly.
7. The above points are only a glimpse of the corruption! As per an estimate, there is a cash transaction of approximately 10 crores in a day only at Nhava Sheva. Imagine the nexus - everybody is hands in gloves including CBI (forget about CIU or SIIB).
This is why it requires secret investigation in disguise with the help of common users to catch hold of these nexus. I had offered myself for the operation to PMO and other ministry for the same but no response received in 3 years. I was hopeful that the present dispensation will act sincerely to eradicate one of the biggest corruption segment but not yet experienced any such thing.
I know an Additional Commissioner was forced to resign as he was honest and threatened for dire consequences from his own department!! more
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For stopping corruption strong will required which does not seem to be in any Govt.as all need funds for their elections. Like Mr.Sudhir Gupta I also wrote to unfold stories of corruption in banking system. In banks on sanctioning small loans managers life become horrible but for Big Loans sanctioned by Top Bosses there is no accountability. Entire country have seen Devil of NPA which has hit entire banking system. Top bosses enjoying during service and after retirement. Their assets are many times from their income received during their entire service. I wrote in Man Ki Baat also, I wrote to Mr Jaitely and Mr.Anil Singhvi of CNBC but none responded. Further everyone knows that Registry (Registration of Title Deeds in the office of Sub Registrar) on all places could not be done without paying fees under table. Even for small works money is to be paid. For getting driving licence all forms downloaded from Haryana Official website were not accepted by desk officials in SDM office and advised to bring file from particular shop. Loot and corruption have so many mouth. If you raise voice against this there will be thousands of objection which will stall your work .Corruption has become rampant and no one is willing to vanish it and it is growing more than mushroom. However efforts of Sh.Sudhir Gupta appreciated. more
Sep 11
Dear Sudip Gupta, I must appreciate your courage offering your support for the common cause. You have not received any response to your communication and that is a clear indication why corrupt practices are continuing in our country. We need to wait for centuries now to see the change in our country. more
Sep 11
Corruption apart, i wantvto bring an important matter before central government. This is about freelancing and contract jobs. These are highly unregulated and often the freelancers have been complaining of getting cheated. The government is urged to come up with a common contract document that guarantees wages and worker rights to freelancers. When a freelancer is not paid for his services, he or she should be able to file a complaint in the labor department and recover his wages. THIS IS HIGH PRIORITY since freelancing and contracting can be more profitable to businesses. Anybody out of job can do some freelance work and make a living out of it. The peopke of india will only thank the government for this initiative. more
Sep 09
Sudip, Surprised that even PMO's office did respond for over 3 years. Try uploading your story on Facebook and Twitter. Someone will surely take it up from there . As you surely know there is a very strong lobby and nexus in the central excise and customs department and earlier attempts to arrest these officers have failed with their colleagues resorting to strike which adds to the cost of goods clearance. Moreover the speed money collection process is almost full proof with no CHA collecting agent ready to open his mouth. Only a determined govt can break this racket inspite of the loss that may incurr to the exchequer. more
Sep 09
