DRI at 68 — Why it must keep reinventing itself for emerging challenges

The Directorate of Revenue Intelligence (DRI) celebrated its 68th founding day recently — 68 glorious years of service protecting the economic frontiers of the country. From humble beginnings in 1957 with offices in the four metros, the DRI has expanded to 62 offices across the country, reflective of the extent and nature of the challenges the country faces.

With just over 700 personnel it continues to be lean

, focused and effective.
The DRI has an exceptional record at the forefront of detection of cases of a wide range of attempts to smuggle — from gold, the whole range of drugs, psychotropic substances, new psychoactive substances, synthetic drugs, flora and fauna ranging from red sanders to turtles and tortoises, cigarettes, fake Indian currency, foreign currency, drones, substandard goods being brought in violation of IPR.

An increasing globalised, interconnected world has brought in its wake a surge in trade and attendant challenges. Commercial frauds (defined by the World Customs Organization (WCO) to mean any offence against statutory or regulatory provisions which Customs are responsible for enforcing, committed in order to evade, duties) have also increased. Trade based money laundering where trade is merely a ruse for transferring illicit funds has also increased as has the use of cryptocurrency.

The DRI has successfully overcome the legal challenges to its powers to investigate such cases and has done well in the sphere of curbing commercial frauds too. Every act of violation of import regulations apart from the obvious loss of revenue, hurts legitimate trade, results in loss of jobs, generates unaccounted money which can be used for nefarious purposes impacting national security. So, 68 years down the line there is a lot for the DRI to be proud of.

The more things change the more they seem to remain the same, as the recent detections both of outright smuggling and commercial frauds show. So, it can ill afford to sit on its laurels — the DRI needs to keep re-inventing itself to face new challenges. While the traditional modes of smuggling and evasion will continue, it is bound to become more sophisticated, more technology driven, and consequently more difficult to detect.

A charter sets the tone and purpose of an organisation. The DRI has a charter which has stood the test of time and in its broad sweep covers very many of the activities which the DRI should be focusing on. However, the DRI could do well to revisit its charter; it would need to be reworked to made more contemporary to address the present challenges.

Thus, for instance, the DRI cannot avoid pursuing the financial aspects of a customs offence—money is the lifeline of any such crime. In any case, trade-based money laundering is an area in which the DRI is already actively engaged, precisely because the “trade” often serves merely as a cover for illicit financial dealings. While all details of customs offences should continue to be shared with the Enforcement Directorate, the DRI would do well to include money laundering in its own charter and follow the money trail in customs-related offences. This should specifically include cryptocurrency and stablecoins.

In the same vein, DRI can also consider including over-valuation along with under-invoicing— the Customs Act mandates that the correct value be declared.

The DRI could consider including Data Analytics and Risk Management and
issuing Modus Operandi and Alerts to the Customs formations on a real-time basis for detection/interception, in the Charter. This is being done but given its critical importance it would perhaps be better if it figures in the Charter. Similarly, DRI with its superior intelligence credentials should consider coordinating actively, with the preventive commissionerates in their anti-smuggling activities.

Apart from this, DRI should necessarily have a brief training programme for officers inducted in the organisation. Any organisation is as good as the personnel manning it —and pride in the organisation is critical. While obviously the officer being inducted has been vetted and has sound credentials, training nevertheless is essential to make the officer familiar with the ethos of the organisation. An ethos where the officer learns that the organisation is bigger than the self, where cooperation and trust with colleagues is essential, where professionalism and tenacity are respected, where integrity is a given.

The officer should be made aware that they are standing on the shoulders of officers who have made the organisation what it is today— feared and respected and have the task of carrying forward this legacy.

With success and recognition comes great responsibility. The theme of the
inaugural coffee table book of the DRI was the inspirational lines of Rabindranath Tagore’s poem ‘Where the Mind is without Fear’. The DRI should continue to discharge their duty without fear, without compromising on doing the right thing always — and assisting the government achieve its larger goal of becoming a Viksit Bharat (developed India), where a safe environment in which industry flourishes without having to face unfair competition is ensured.

Her Excellency the President of India, in her message to the DRI on the occasion of the 68th founding day while lauding the efforts of DRI had gone on to say; "I believe that this has not only protected our economic frontiers but also reinforced our citizen’s trust in the integrity of enforcement institutions".

And the citizen’s trust in the integrity of the DRI can be reinforced only by being professional — every time, all the time. And it should never be forgotten that professionalism implies reliability, integrity, accountability, being apolitical, trustworthy, competent, independent — all within an overarching emphasis on ethical conduct.

—The author, Najib Shah is former Chairman, Central Board of Indirect Taxes & Customs. The views are personal.