► The Diamond Jubilee (60th) Founding Day of DRI to be observed on 4th December, 2017
►What We Do
As the apex intelligence organization of Indian Customs, it is the prime responsibility of DRI to enforce the provisions of the Customs Act, 1962.
The charter of duties of the DRI includes collection, collation, analysis and dissemination of intelligence relating to smuggling. It also, in cases having pan-India repercussions, works out such intelligence on its own. DRI has over the years, built up a formidable reputation as the premier agency in the field of anti-smuggling on account of its accumulated body of work. DRI has established a vast intelligence gathering network which relies heavily on traditional human intelligence resources as well as contemporary intelligence gathering tools.
Smuggling is the secret movement of goods across national borders to avoid Customs Duties or import or export restrictions. It typically occurs when either the customs duties are high enough to allow a smuggler to make a large profit on the clandestine goods or when there is a strong demand for prohibited goods, such as narcotics or weapons.
In recent times following trends have been observed
Fake Indian Currency Notes
The phenomenon of fake currency has acquired ominous proportions, posing a threat to economic security on the one hand, and a possible nexus with global terrorism on the other.
Most of the FICN detected is smuggled from outside of India. Routing of FICN has been noticed through hub stations developed in other countries like Bangladesh, Nepal, Sri Lanka, Thailand, UAE and Malaysia.
Directorate of Revenue Intelligence, being the lead intelligence agency in the fight against FICN smuggling, has adopted a multi-pronged approach to tackle the threat. Pro-active intelligence gathering, interdiction of consignments, intelligence sharing with local as well as foreign agencies and capacity building are some of the steps taken to counter the menace of FICN. DRI has taken a main role in pursuing the elements engaged in pushing FICN both within and outside the country.
In 2012-13, there has been a spurt in the seizures of gold bars and jewellery.
Drugs and Psychotropic Substances
The Directorate of Revenue Intelligence has played an important role in ensuring supply reduction of narcotic drugs and psychotropic substances in India. Though, it does not have a continuous presence at the borders, the contribution of DRI to the fight against drugs has been significant. DRI has been participating in various international meetings, workshops and seminars in order to keep track of global trends and enforcement strategies. DRI has also been sharing intelligence with other administrations, wherever required, in order to check the illicit movements of drugs and substances across the borders. Several seizures of drugs were made in foreign territories based on inputs and information shared by DRI.
Trade Based Money Laundering
DRI is alert to the possibility of trade based money laundering (TBML) being resorted to by certain elements. Financial Action Task Force describes TBML as the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimize their illicit origins. In simpler terms, TBML is the process of transferring / moving money through trade transactions. In practice, this can be achieved through the misrepresentation of the price, quantity or quality of imports or exports. The basic techniques of trade-based money laundering includes Over and Under-Invoicing of Goods and Services, Multiple Invoicing of Goods and Services, Over and Under-Shipments of Goods and Services, Falsely Described Goods and Services.
Mis-declaration is resorted to in description, country of origin, end-use, etc., with the intent to avoid payment of Customs duties including CVD, Anti Dumping duty, etc. and also to circumvent non-tariff barriers.
Undervaluation is primarily effected by way of presenting forged or false documents to the Customs authorities, showing and supporting suppressed values. Another modus is by way of non-inclusion of allied cost components in the assessable value by making partially correct declarations at the time of filing bills of entry. Several cases involving undervaluation of items like Plants and Machinery, Consumer goods, Computer Parts and Accessories, Motor vehicle parts and accessories and Artificial Leather cloth, have been detected.
Misuse of End Use and Other Notifications:
Exemption Notifications are used as a tool by the Policy makers to provide relief or boost to specific sectors or groups. Most of these exemption notifications come with certain pre-conditions. These conditions seek to either restrict the eligibility or could be in the nature of fulfilment of certain post import requirements. Customs authorities, as a trade facilitation measure, generally rely on the declarations made by the importers. Therefore such cases are susceptible to mis-declaration whether in declaration of the eligibility criteria, description of goods or end-use or post import conditions.
Misuse of Foreign /Preferential Trade Agreement (FTA/PTA)
In order to foster trade relations and expand its market, India has entered into many bilateral and multilateral trade agreements with other countries. Such agreements accord the exporting country certain tariff and/or non-tariff benefits and therefore are also fraught with the possibility of misuse.
Misuse of Importer Exporter Code
The Importer Exporter Code number (IEC) is a unique ten digit number allotted by the Directorate General of Foreign Trade (DGFT) and is linked with the PAN number. It is mandatory for every importer/exporter to obtain an IEC. It enables easy identification of the importers. However, to avoid punitive action, bogus IECs are used to carry out dubious transactions. These are either obtained by misrepresentation of facts or by using genuine IECs fraudulently by third parties without the knowledge or consent of the actual IEC holder or by “lending” out for use, by the actual IEC holder to a third party.
Crime against environment
The Government of India is a signatory to various treaties and conventions under which trans-border movements of specified commodities are regulated, such as the Basel Convention on the Control of Trans-boundary movements of Hazardous Wastes and their Disposal, the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and their Destruction (CWC), the Cartagena Protocol on Bio-safety, Montreal Protocol on substances that delete the ozone layer, the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides etc. These multilateral agreements regulate the cross-border movements of many substances and products in the form of import and export thereof. DRI has been in the forefront of the drive against violations of such multi-lateral agreements, which may not have a direct impact on the government revenue, but are highly detrimental to the environment and ecology of the country.
As the enforcement agency responsible for securing the economic frontiers of the country, one of DRI’s mandates is to ensure that compliance of national laws is met with respect to goods entering or leaving the country. Relevant provisions in the Customs Act, 1962 empower the customs officers to intercept any goods which do not comply with the provisions of other Acts, insofar as import and export are concerned.