28 November, 2006 - Of the 461 seizures of illegal goods worth Nu. 1.67 million made in 2005, tobacco products and betel nut products topped the list according to the National Revenue Report 2005-06.
A dissection of seizure items showed 105 seizures to be tobacco products followed by 53 seizures of betel nuts. The rest were garments (27), aerated water (21), plastic bags (20) and sugar (14). The top seven items constituted 52 percent of the total seizure goods.
The number of seizure cases had decreased from 2002 to 2004 but saw a drastic increase in 2005.
In 2002, 313 seizures worth about Nu.841,000 were recorded. It decreased to 290 the next year but was worth Nu. 1.71 million. It decreased further to 193 cases in 2004 and was worth Nu.1.08 million.
Compared with 2002, the number of cases in 2005 had increased by 32 percent while the value of the seized goods had increased almost by 50 percent.
The Revenue Report states that there was a lack of information on seizures in 2002 “as most of the seizures were ad hoc and not recorded properly”. But in recent years seizures had increased after the application of risk management and information sharing among different custom offices.
Majority of the seizures were made in the Phuentsholing region with 66 percent, followed by Paro with 17 percent and Samtse with nine percent. Phuentsholing accounts for the higher number of seizures, as it is the main entry point for goods imported from other countries, particularly India, Bhutan’s largest trading partner.
All seizures in Paro were tobacco products following an “increase in illegal imports of tobacco products as a result of the ban on the import of tobacco and related products” starting December 17, 2004.
By value, 66 percent of Nu.1.67 million worth of seizures were in Phuentsholing, followed by 29 percent in Samdrup Jongkhar, four percent in Gelephu and a percent in Samtse.
The report states that the tobacco ban for commercial sale and increase in tobacco tariff “has resulted in black marketing of these goods”.
Today, one is allowed to import 200 pieces of cigarettes for personal consumption and if brought from India, one has to pay 100 percent sales tax and from third countries, an additional 100 percent customs duty, according to the Bhutan Trade Classification, Customs Tariff and Sales Tax Schedule, July 2005. Sales tax for betel nut is 20 percent.
Of the total 461 seizures made, 61 were apprehended on routine checks, 54 were restricted goods, 39 were concealed under mixed goods, 30 were hidden in vehicles, 21 cases were non declared, 16 were apprehended on suspicious grounds and 13 were on grounds of tax evasion.
By Tashi Dorji
tashi_dorji@kuensel.com.bt
