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This is an archive article published on October 17, 2004

Change the custom

India’s firewalls are grossly inadequate. Even though as many as seven nodal agencies are directly part of metal scrap’s journey f...

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India’s firewalls are grossly inadequate. Even though as many as seven nodal agencies are directly part of metal scrap’s journey from source country to Indian importer, you know what got in. Does that call for a tightening of inspection norms? And at what cost? There are no easy answers.

In the immediate aftermath, the Inland Container Depot (ICD) Customs Department has stalled about 1,500 containers, and now sends all metal scrap containers to the Delhi Police’s bomb squad before it can ship them off.

And CBEC chief A.K. Singh has made things a little simpler by making compulsory ‘‘No War Material’’ labels on scrap consignments. On Friday, Commerce Minister Kamal Nath said that all scrap consignments would need pre-shipment certificates from one of about 29 recognised inspecting agencies at the source.

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But such barriers on foreign suppliers ignore the core issue — India’s security infrastructure is either inadequate or badly allocated. The fact remains that 42 per cent of everything imported into the country arrives through a green channel—which means it enters entirely uninspected.

The Intelligence Bureau has already told the Home Ministry that Indian Customs law need rapid overhauling. The ICD Customs department — incredibly the only agency with a security inspection mandate in a container’s journey — is mandated to inspect only a quarter of all the containers it receives. There are no specific guidelines. And now, even this mandate has been withdrawn.

COUNTRIES IN CONTRAST: SCRAP IMPORT NORMS

India: No screening at port of entry. Random inspection

US: Three-stage screening facility at port of entry. Suspicious containers are manually checked under Homeland Security laws

EU: Screening facility at port of entry

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China: Authorises someone to inspect scrap at port of origin before it is shipped

Opinions abound of how the ICDs — which manage 12,000 metric tonnes of metal scrap alone every day — should be given the mandate to open and inspect all containers they receive. And that Indian ports should have X-Ray screening equipment for all containers.

However, it emerges that a 100 per cent inspection mandate for ICDs would add innumerable costs and protract the lag time in importers finally obtaining their material from Customs.

The problem, as a senior Customs official says, is the balance between security, time and money. ‘‘Give us more inspection power but be prepared to wait more and pay a lot more. But there has to be a more comprehensive solution — national security does not have a price tag.’’ There are no easy solutions.

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