FM Nirmala Sitharaman seeks global help to nab smuggling masterminds

Calls for cooperation of global Customs bodies to share "actionable" info

Union Finance Minister Nirmala Sitharaman has called for the cooperation of global Customs authorities to share “actionable” information and leverage technology to capture the key players in illicit cross-border trade.

She also suggested that law enforcement agencies focus on apprehending the masterminds behind such illegal trade, which would, in turn, deter activities that harm the economy and national security.

“I place a lot of emphasis on intergovernmental cooperation, along with the World Customs Organization (WCO), so that we can apprehend the masterminds behind smuggling with assistance from local authorities and governments,” Sitharaman said during her speech at the Global Conference on Cooperation in Enforcement Matters organised by the Directorate of Revenue Intelligence (DRI).

The nature of smuggled or illegally traded goods has remained largely unchanged over the past 50-60 years, with precious metals, narcotics, and protected resources from forests or marine life being the most common items.

The minister underscored the importance for all governments to understand how to deter smuggling activities that endanger India’s natural flora and fauna and how to combat networked groups who believe that the small fry can be sacrificed, while the big fish remain elusive.

Emphasising the importance of data exchange, she said, “In this ever-changing landscape, one cannot underestimate the role of data exchange. It’s not just about information; it’s about the power to predict, prevent, and protect.”

“India has robust data protection and privacy measures in place, and we strongly support the automatic exchange of information and data on a bilateral basis. I request WCO to expedite the policy framework for data exchange,” she added.

Senior officials from Central Board of Indirect Taxes & Customs (CBIC), Central Board of Direct Taxes, and DRI, the anti-smuggling agency, attended the event.

CBIC chief Sanjay Kumar Agarwal stated that as global trade interconnects and economies prosper, there is a corresponding increase in the potential for the unlawful movement of restricted items such as antiques, cigarettes, gold, and endangered wildlife species, among others. Additionally, the illegal drug trade continues to thrive.

"Global drug trafficking is estimated to be worth $650 billion, contributing approximately 30 per cent to the overall illicit economy. This is a significant amount of money, and it has a devastating impact on communities worldwide,” Agarwal said.

He highlighted the conference theme, ‘It takes a network to fight a network’, emphasising the importance of intelligence and information sharing to combat illegal trade.

Furthermore, export-import frauds threaten the global supply chain and pose a risk to economic and national security. Thus, there is a need for collective efforts to defeat these transnational syndicates, which require continuous support from international enforcement, Agarwal noted.

While addressing the scourge of smuggling, Revenue Secretary Sanjay Malhotra, also present at the event, highlighted the need to introduce pro-business measures that reduce costs for businesses and enhance competitiveness.

“The sheer scale of smuggling in the modern world makes it imperative to adopt a constantly evolving and technology-driven approach to combat it. The use of highly sophisticated networks and advanced technology by criminals makes detecting these transnational crimes extremely difficult. Therefore, one of the most effective ways to counter such cross-border crimes is to improve cooperation among different agencies and countries,” he suggested.