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Friday 28 October 2016

Chinese firecrackers worth Rs 1500 crore are smuggled through seaports under false declarations before Diwali despite a nationwide ban BY UNSCRUPULOUS TRADERS

Despite a clampdown last year, tonnes Chinese firecrackers is smuggled Directorate of Revenue Intelligence seized such firecrackers worth Rs 7.2 crore that were stuffed inside cargo containers in Mumbai port Smuggled crackers enter the market a few days before Diwali and are mostly sold by temporary licence holders Tonnes of Chinese fireworks, which erupt into a toxic haze over Indian cities every Diwali and leave residents gagging for oxygen, are being smuggled into the country despite the Centre ordering a clampdown last year. Officials from the Directorate of Revenue Intelligence (DRI) seized such firecrackers worth Rs 7.2 crore that were stuffed inside cargo containers labelled “Adhesive Tapes” and “Badminton Rackets” at a Mumbai port in August. But sources say dozens of similar cases go unnoticed. Possession and sale of foreign-made explosives is a punishable offence under the Explosives Act, but the Chinese fireworks that are cheap but often unreliable and dangerous easily make their way to Indian markets. A visit to the wholesale fireworks market in old Delhi’s Chandni Chowk area reveals how the illegal imports have dampened the local business in the past few years. +5 A visit to the wholesale fireworks market in old Delhi’s Chandni Chowk area reveals how the illegal imports have dampened the local business in the past few years. Manufacturers of firecrackers in Tamil Nadu’s Sivakasi town say Chinese variants are flooding the country without any checks and the trend has gone up in the past few years. Diwali has been muted in Delhi and other big cities in recent years with activists and experts blaming the celebrations for exacerbating the appalling air quality. K Mariappan, general secretary of the Tamil Nadu Fireworks & Amorces Manufacturers Association (TANFAMA), said nearly 2,000 containers of Chinese firecrackers worth about Rs 1,500 crore are sold in Indian markets annually. “They are being smuggled into India through main seaports such as Kandla, Nhava Sheva (Mumbai), Tuticorin (Chennai), ICD Tuglakabad and Kolkata." The manufacturers also alleged that unlike Indian products, Chinese fireworks do not adhere to any noise standards prescribed by the Environment (Protection) Rules, 1986 and the Explosives Rules, 2008 +5 The manufacturers also alleged that unlike Indian products, Chinese fireworks do not adhere to any noise standards prescribed by the Environment (Protection) Rules, 1986 and the Explosives Rules, 2008 "They enter under false declarations in the name of toys or electronic goods,” he said. The Chinese firecrackers are low on cost but come with a lot of risks, say industry insiders. “They are cheaper because of the use of chemicals such as potassium chlorate and perchlorates that are banned in India as they are not safe for the climate here. In Sivakasi as well as in many parts of the country where the temperatures are often high, the use of these chemicals in firecrackers may prove lethal,” said Mariappan, pointing out that more expensive but safer potassium nitrate and aluminium powder are used in India. The manufacturers also alleged that unlike Indian products, Chinese fireworks do not adhere to any noise standards prescribed by the Environment (Protection) Rules, 1986 and the Explosives Rules, 2008. Rising cases As early as on Wednesday, Directorate of Revenue Intelligence (DRI) officials seized large quantity of Chinese crackers worth Rs 1.27 crore during a raid at Pithampur inland container depot (ICD), Dhar. DRI officials say the crackers were brought ahead of Diwali festival, when their sales boom. Shailendra Singh, joint secretary in the ministry of commerce and industry, acknowledged that Chinese firecrackers are being illegally brought into the country. +5 “Many instances of smuggling have come to light. The containers of crackers enter the country under the guise of different items like toys or sports goods,” he said. Enforcement agencies including DRI, Customs and state authorities, keep a check on the influx of foreign fireworks at Indian borders. Singh said the government has not provided any licence for import of Chinese firecrackers. The matter was taken up with chief ministers to direct concerned authorities for keeping a close vigil on clandestine import of fireworks and their sale. Officials said advertisements were published across the country to sensitise people against using illegally imported firecrackers and their harmful effects to the environment and health. Also, district authorities, DRI and Customs officials have been instructed to confiscate such items and take action against illegal importers and sellers. “We have been writing to these agencies and states as the import of fireworks from China has been banned,” added Singh. “This time too we would write to them and they will also be sensitised to stop the smuggling into the country.” A visit to the wholesale fireworks market in old Delhi’s Chandni Chowk area revealed how illegal imports of Chinese crackers have dampened the local business in the past few years. “Many people don’t think about safety and buy Chinese crackers because they are cheaper,” said Janaki Jain, a wholesale trader. Huge demand Merchants said smuggled fireworks enter the market only a few days before Diwali in Delhi and other parts of the country and are mostly sold by temporary licence holders. “There is a huge demand of such crackers in smaller colonies and cities,” Jain added. “People don’t care about safety and only go for the stuff sold at cheaper rates.” Licence to kill cracker business By Kumar Vikram As Diwali approaches, thousands of shops start selling fire-crackers, though on a temporary basis. But traders claim that ‘unfriendly’ approach of authorities have dampened their business over the years. In states, district authorities are empowered to grant licences for possession and sale of fireworks. Lack of time frame has been causing several hardships to the manufacturers, wholesalers and retailers of fire crackers +5 Lack of time frame has been causing several hardships to the manufacturers, wholesalers and retailers of fire crackers Manufactures claim that these temporary licences are given in a haphazard manner for varying periods ranging from three to 15 days before Diwali. “These licences reach the hands of the licensees on the last day of Diwali and in some cases, even after Diwali. There is no time frame or uniform practice set for receipt of applications, grant of licences,” says K Mariappan, general secretary, TANFAMA (Tamil Nadu Fireworks and Amorces Manufacturers’ Association). Lack of time frame has been causing several hardships to the manufacturers, wholesalers and retailers of fireworks. They say that the fireworks shops should be able to get their supplies well ahead of Diwali. “The consumers should also have sufficient time to procure their requirement before Diwali. But when the temporary licences are delayed, the shops are left perplexed and there is a grave uncertainty as to when they will be granted with licences,” adds Mariappan. +5 In recent years, the industry has witnessed a trend wherein the majority of stocks with temporary firework shops remain unsold after Diwali for want of sufficient time to sell, giving raise to storage problems and safety hazards. According to Sivakasi-based fireworks associations, several representations have been made to the Union government to address the issue of unwanted delay in issuing the licences, besides ensuring that such licenses are valid for 30 days. A senior official of the department of industrial policy and production (DIPP) says that the department has written to the states in this regard and has issued guidelines to sort out the issue. “We had consultations with the industry and guidelines have been issued to set a time frame. It’s up to the states to implement the guidelines and set rules,” adds the official Read more: http://www.dailymail.co.uk/indiahome/indianews/article-3783429/Chinese-firecrackers-worth-Rs-1500-crore-smuggled-seaports-false-declarations-Diwali-despite-nationwide-ban.html#ixzz4ORvBXaFn

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