CHENNAI: In one of the biggest recent seizures, Chennai Seaport Customs recently foiled a bid to smuggle in 19.8 lakh sticks of misbranded Indian cigarettes worth Rs 3.5 crore from Dubai in a cargo consignment declared as Bitumen.
Sources said the cargo was imported to Chennai Port by a Kerala-based business entity which was operating from a co-working space in the state.
The cargo had multiple containers of Bitumen inside which cigarette sticks of the ‘Goldflake Honeydew smooth’ were hidden.
According to sources, the Seaport Customs had seized similar consignments containing foreign and misbranded Indian cigarettes worth Rs 87.17 lakh and Rs 1.92 crore in August. However, in those cases, the cigarettes had been successfully smuggled from the port and brought to godowns in Triplicane and Moore Street in George Town. Investigation by Customs found that the cigarettes were meant for sale in the open market.
Made in Vietnam, Cambodia
According to investigators, these misbranded cigarettes are manufactured in Vietnam and Cambodia at a very low input cost and smuggled to India where every stick costs Rs 18-20 due to a sin tax.
This illegal trade generates a huge revenue as the cost price of each stick is only around Rs 4. Even after accounting for transport charges, the margin on sale of each stick is at least Rs 10. Such smuggled cigarettes can also be sold at a cheaper rate by shopkeepers and yet make profits, sources added.
To help agencies differentiate between the original cigarettes manufactured in India and misbranded counterfeits smuggled in, manufacturers have issued a set of markers. For instance, the original cigarettes will carry health warnings as mandated by COTPA, which keeps changing every month. The counterfeits will have the old warnings. The original cigarette packs will carry a unique ID code for each pack, which is not the case with counterfeits, an official said.