It may not have the allure of gold but a staggering profit margin rivalling even the yellow metal means that cartons of cigarettes are getting smuggled into the State through its three airports despite numerous failed bids thanks to the intervention of the Customs.
Customs sleuths at the Thiruvananthapuram airport recently foiled an attempt to smuggle in 2,600 cartons containing five lakh cigarette sticks from Bahrain by a gang of 12, mostly from North Kerala. While seven were detained, the remaining managed to escape. It was one of the biggest seizures, if not the biggest, to be recorded in the State.
“The attention that the smuggling of gold attracts often eludes cigarettes. But the fact is that cigarette entails a bigger profit margin hovering anywhere between 150 and 180% after discounting all the associated costs. Had the smugglers managed to dodge us and get the 2,600 cartons out, they would have made ₹1 crore after investing around ₹60 lakh,” Sumit Kumar, Customs Commissioner, told The Hindu.
Mumbai market
The Customs officials believe that only a small share of the smuggled cigarettes land in pockets of Kochi and Kozhikode while majority of them goes to retailers in Mumbai, which is perhaps the biggest tobacco retail market in the country. Cigarettes smuggled in through airports are taken straight away to railway stations where carriers feigning as premium passengers get them transported to Mumbai in first class coaches. Since similar cartons are used by rail passengers, detecting the contraband is that much tougher.
Logistical problems
“Customs Preventive is stepping up road, rail and market checks to locate carriers and warehouses of such smuggled cigarettes in the State,” Mr. Kumar said. Smuggled in cigarettes are, however, easy to identify as their packaging is not in compliance with the laws here. Hence, the Customs officials hope to garner more information with the help of smokers and the industry players.
Besides, the seizure of cartons of cigarettes poses logistical nightmares as well to the Customs. “These cartons consume large space and customs warehouses all over the State are overflowing with them. Their destruction is equally daunting as they can only be disposed of in compliance with the provisions of the Environment Protection Act,” Mr. Kumar said.