India Worries over Smuggle good from Burma ( Mizzima ) November 21, 2002

The Government of India has incurred a huge annual revenue loss due to an unabated flow of third country goods across its international borders with Myanmar and Nepal. Northeast India has become a major dumping ground for third country goods, posing a serious threat to local industries. These goods, mainly electronic items and garments from China, Taiwan and Malaysia, are smuggled to the region through different border points and are then sent to various destinations as per consumer demand. What is more alarming is that the three states of India's north-east that border Myanmar - Assam, Manipur and Nagaland, are flooded with the third country products resulting in Indian-made goods losing a significant market share.

" The third country products have a good demand in this region and hence the volume of trade is increasing gradually. Moreover, the people have a strong affinity towards these goods" a group of traders told this correspondent today. They added that the third country products are cheaper when compared to the Indian products and hence people are more attracted towards them. If steps are not initiated early, then entire Indian industries will be facing a serious crisis, the businessmen observed.

   Though the authorities concerned have made several seizures during the last couple of years in different customs points along the international border, the problem is yet to be contained. The fact is that the entire international border is not properly manned and smugglers are able to take advantage of the situation, running their business without any hindrance.

"Our demand is that the entire border should be sealed immediately by deploying greater forces to contain the menace" the traders said. They also appealed to the government of India to take urgent steps, considering the gravity of the situation.

     The third country products are generally brought to the region from Tamu and Namphalong markets of Myanmar and are then despatched to various destinations in India. The Burmese Junta is earning huge revenue from the markets following increasing demand of products in India.

   The Commerce Ministry has taken serious note in view of the unabated flow of third country goods. The Joint Director Foreign Trade, M K Mero, informed that he has already taken up the matter with the commerce ministry. According to the trade agreement, only 22 items are permissible under the barter trade system and these do not include electronic items and garments. However, he added that the rule is completely violated. Asked what steps should be initiated to overcome the situation, he observed that the Gate N0-2 located at Moreh, bordering Myanmar, should be declared as a customs point. He also suggested that the third country products should be strictly brought under the normal trade system to increase the revenue collection.